ILPs, Savings and Endowment plans..

[GloveK8]

Hello guys,

Im 24 this year, looking to buy ILPs, Savings or Endowment plans.. I've went thru the different insurance company websites, but the details are all not clear enough, hopefully the agents or anyone here can tell me more about the plans..

I know the best would be BTITR, but the coverage is only till 65 if im not wrong? Im also not too sure abt how to buy unit trust all these.. I read some of the threads here regarding ETFs and unit trusts, Im still not too clear about the differences in these 2 products..

Thanks in advance!!!!

 

[sCuzzZy]

There are term plans that can go beyond 65, up to yourself.

Majority of ETF tracks indices, while unit trust can almost go into anything. Its a collective investment where fund managers(fundhouses) can buy equity/bonds/reits/money market anything. More diversification(instrument,regions,industries etc..), less exposure to a single or a few counters. Less-er risk, which also MAY mean lesser return.

For investments, its good to know your risk profile. how long you can stay invested and of course your objective.

Good luck!

 

[crissangelz]

saving & endowment is e same thing... it focus more on savings bt less on coverage... as for ilp, e choice is ur to u, u can either focus more on investment or coverage... yups term plan u can go beyond 65... most company provide up to 75 now bt its will be slightly more exp lo... i heard they coming up with a term plan up to 99 soon, bt dun know when... hv to chk it out

 

[PRUbombz]

saving & endowment is e same thing... it focus more on savings bt less on coverage... as for ilp, e choice is ur to u, u can either focus more on investment or coverage... yups term plan u can go beyond 65... most company provide up to 75 now bt its will be slightly more exp lo... i heard they coming up with a term plan up to 99 soon, bt dun know when... hv to chk it out

Prudential do offer term plans up to age 100 already.

 

[crissangelz]

Prudential do offer term plans up to age 100 already.

bt tat is only if u are preparing to insured up to a minimum sum of 1 million coverage

 

[Shiny Things]

Pro tip: if you buy term life, you don't need coverage after age 65.

The point of life insurance is to provide coverage for your dependents if something untoward happens to you. Let's say you're 35, married, with one point two kids (how you get point two of a kid is left as an exercise for the reader). At age 35, your little brat's probably about five to ten years old. If you fall off the perch, your significant other will have to quit their job to care for the kid for the next 8 to 13 years, but they'll still have to pay the rent and keep the kid fed and clothed until the ungrateful little sprog moves out. In this case, you need life insurance.

But by the time you turn 65, you shouldn't have any dependents: your kids will be out of the house, done with college, and hopefully they'll have stopped mooching off you. So you don't need life insurance any more, because you don't have anyone to support. (And don't say "the SO" - they should be able to retire on your joint assets, and if not, they can go back to work without having to worry about supporting a kid.)

 

[GloveK8]

Hi all sorry for late reply.. i agree that term is not really needed after 65 as most of the liabilities are gone, but Im worried about the illness part.. as we get older, all the disease will come out.. Thats why im also looking at whole life plan too..

 

[Darkzi0n]

there is a hospitalization and surgical from AIA, healthshield gold elite (+healthshield gold elite essential as rider if u wan) which covers u until 100.

and if u main concern is protection, den u sldnt be looking at endowment or ILPs.

 

[chopra]

yes, correct approach for illness is to buy hospitalisation shield plan. you should already have medishield. now is whether u want to upgrade to PRIVATE INTEGRATED SHIELD PLAN.

Search the thread in this sub forum on shield plan for more insights.

 

[vincent007]

yea term insurance will come into effect only for critical illness or death.

 

[Lucas_]

Saving and Endowment Plans are more suitable for educational/retirement when you do not have to worry about market timing. For example, if its a 20 year saving plan, you cash out at the 20th year knowing that at that point of time, you will have this amount of money coming in.

Return wise, they are much lower as compared to stocks/STI in my opinion. If you know how to invest yourself, get term insurance and hospitalisation and save up the rest to invest.

The only good thing about saving plan is that it allows you to pay in like 50,100,150 per month which stocks do not allow you to, in my opinion.