ILPs

[MisterLim001]

Why is it that in this forums, so many insurance/financial advisors say ILPs no good, but in real life, say ILP got eagle, tiger and whale arh? very hypocrite loh.....

 

[Aerial86]

It depends on how ILP is viewed as by individuals. It is quite a complicated plan for layman and from what I've heard so far, most of the agents do not go into detail in explaining the structure of ILPs which leads to client not knowing how exactly the product work except that it gives protection and at the same time, investments. Which already sounds good to them. To me, it is definitely a plan that could be used to complement someone's portfolio if used correctly through good plannings.

Another reason is because of the commissions structure which I will not go into detail here. But of cause, all that I've said is through experiences I've learnt from my own clients and personal knowledge about the product. Most importantly is still to be absolutely clear of the feature and objective of each products you are buying into first before committing =)

 

[MisterLim001]

care to explain more on the technicality of ILPs?

 

[Aerial86]

I'm more than willing to do so but it's very hard to explain this by typing here..

 

[chopra]

I'm more than willing to do so but it's very hard to explain this by typing here..

maybe only the actuarists know the math.

 

[bigmice]

Why is it that in this forums, so many insurance/financial advisors say ILPs no good, but in real life, say ILP got eagle, tiger and whale arh? very hypocrite loh.....

1st year location 15%
2nd year 50%
3rd year 75%
4th on wards 105%
buy -sell spread 5%
less policy fee and term insurance fee
so actually ILP was lost money as investment
under protection as insuance, so Not recommend to Buy this.

 

[Aerial86]

maybe only the actuarists know the math.

Nope it is calculable as long as the benefit illustration is available

 

[MultiplyYourWealth]

Do you complain to the authority if you go to a restaurant and a buy a can of drink at $2 when you know you can buy the drink at 70cents in the supermarket?

 

[Knight_Rider]

Why is it that in this forums, so many insurance/financial advisors say ILPs no good, but in real life, say ILP got eagle, tiger and whale arh? very hypocrite loh.....

If you are young you could get cover for life, crisis cove and disability for $120 per month. Of course it's good. But there is no free lunch. Mortality is high so as you progress in life drop the protection cover and go all out for investment or whack a single premium when there is crash.

Many people did not top up and expect the investment part to cover the mortality which is not gonna work. It's a good plan to complement you life plan and endowment plan. Everybody say buy term invest the rest. This is perfect for those along this line but more often then not their investment knowledge sucks hence the complain.

P/S I am not an agent.

 

[matchy]

it really depend on the buyer themselves too...

 

[Shiny Things]

Because on here, we're not getting paid to give you advice. We don't have a vested interest in scaring you into buying something. 's that simple.

 

[torrent06]

Mortality is high so as you progress in life drop the protection cover and go all out for investment or whack a single premium when there is crash.

If one does this, one will lose the protection coverage and there is the risk of becoming uninsurable as one ages. If the intention is to drop the protection eventually, one might as well invest directly and avoid the extra admin fees and the hefty distribution costs. Don't mix protection with investment.

 

[MaoZeDuo]

If you are young you could get cover for life, crisis cove and disability for $120 per month. Of course it's good. But there is no free lunch. Mortality is high so as you progress in life drop the protection cover and go all out for investment or whack a single premium when there is crash.

Many people did not top up and expect the investment part to cover the mortality which is not gonna work. It's a good plan to complement you life plan and endowment plan. Everybody say buy term invest the rest. This is perfect for those along this line but more often then not their investment knowledge sucks hence the complain.

P/S I am not an agent.

Top up is good but then again the initial allocation rates apply to the top up as well... So... I duno...

 

[bigmice]

ILP TOP up allocation rate is 100%

 

[MaoZeDuo]

ILP TOP up allocation rate is 100%

Oh yes. My bad. So are regular top ups advisable?

 

[Knight_Rider]

If one does this, one will lose the protection coverage and there is the risk of becoming uninsurable as one ages. If the intention is to drop the protection eventually, one might as well invest directly and avoid the extra admin fees and the hefty distribution costs. Don't mix protection with investment.

Do you need protection at 50? You should have enough life and endowment plans. But at 20 you can't afford the premiums of $100000 life plan with crisis over. that's where ILP comes in.

Yes I always ask the insurance agents dun sell investment. But all the time sell life and endowment also boring right? When Singapore is a financial hub the products get sophisticated as well.