Just signed an ILP...

[AteByYourself]

Hi all, having a bit of buyers remorse... I just signed an ILP from AIA(AIA wealth pro advantage) few days ago. It has 2 component: savings and investment.

Personally, I do have some investments and I do enjoy investing. My portfolio mainly consists of ETF/REITs/bonds/blue-chips. I am however attracted by the policy's relatively hassle free process.

However I was reading the e-documents that they sent and i was horrified to read that they charge 70%(first year), 50%(next 2 years) then 30% next 3 years. Essentially, I will be in red for the first 6 years of the policy. They'll only start compensation at 120% on the 10th year onwards.

The other component will be the endowment. The returns of 3.25% and 4.25% are not guaranteed. Checked with the agent and he mentioned that this figure will either 3.25% or 4.25% which makes me quite suspicious too; why was it not mentioned explicitly?

After spending some time reading the documents and browsing some of the stories you all have experienced with ILPs, I am feeling buyers remorse and I am convinced that this policy is not really suitable for me. There is a 14 days free-look period. Should I cancel, any advice?

 

[assiak71]

Within 14 days. Terminate

 

[Thoreldan]

Within 14 days. Terminate

 

[luei74]

Within fourteen days, terminate.

Sent from Xiaomi MI MAX 3 using GAGT

 

[limster]

you already know the answer since you said you have been reading the threads here.

coming here to ask whether to terminate ILP is like

* going to BMW owners forum and whether to buy Mercedes
* going to iPhone owners forum and ask whether to buy Samsung

anyway +1 before someone ask whether you can share picture of the agent who sold you the policy

 

[JuniorLion]

Of course they have middlemen fees. What were you expecting? They invest for you for free?

Cancel it.

 

[Baroness]

I cannot think of any reasons to ever get an ILP

 

[boredboiboi]

Hi all, having a bit of buyers remorse... I just signed an ILP from AIA(AIA wealth pro advantage) few days ago. It has 2 component: savings and investment.

Personally, I do have some investments and I do enjoy investing. My portfolio mainly consists of ETF/REITs/bonds/blue-chips. I am however attracted by the policy's relatively hassle free process.

However I was reading the e-documents that they sent and i was horrified to read that they charge 70%(first year), 50%(next 2 years) then 30% next 3 years. Essentially, I will be in red for the first 6 years of the policy. They'll only start compensation at 120% on the 10th year onwards.

The other component will be the endowment. The returns of 3.25% and 4.25% are not guaranteed. Checked with the agent and he mentioned that this figure will either 3.25% or 4.25% which makes me quite suspicious too; why was it not mentioned explicitly?

After spending some time reading the documents and browsing some of the stories you all have experienced with ILPs, I am feeling buyers remorse and I am convinced that this policy is not really suitable for me. There is a 14 days free-look period. Should I cancel, any advice?

This type of high charges ilp has been long not seen people selling. But beware u might not get back every single cent if the fund lose money especially past week has been red in the market.

 

[tangent314]

You already know how to invest on your own, there's no need to throw money away just to have someone else help you do that.

Just remember not to let the agent talk you out of canceling. He will definitely come up with all kind of excuses to try to change your mind. The real reason of course is that once the 14 days has passed he automatically gets ~50% of your first year premium.

 

[wutawa]

If the agent is pretty, keep it. Do not measure everything in terms of money.

 

[d9_lives]

If the agent is pretty, keep it. Do not measure everything in terms of money.

This.
Don't break her heart.

 

[BeefCutlet]

If the agent is pretty, keep it. Do not measure everything in terms of money.

pretty no use... make sure u get to pump her also... twice

 

[tangent314]

This is Money Mind forum, not EDMW.
Please stop all these inappropriate nonsense.

 

[chopra]

1. Within 14 days. Terminate.
2. spend 140days to read shiny things thread in money mind.
3. reassess.

 

[Shion]

ILP is probably the worst product in the market. Takes too long to break even and not to forget the various charges from the investment and also when you age. Dont be fooled by premium holiday as well.

 

[BBCWatcher]

Get Out

If playback doesn’t work, try: https://youtu.be/sRfnevzM9kQ

 

[JuniorLion]

This is Money Mind forum, not EDMW.
Please stop all these inappropriate nonsense.

Got infraction?

 

[limster]

https://forums.hardwarezone.com.sg/.../insurance-agents-selling-tinder-6195590.html

this is just in case there are some who are not aware. for info only. can continue the discussion in that EDMW thread if so inclined.

 

[2474265]

Why would anyone buy something like that????

Cancel in first 14 days.

 

[giraffey]

Dont need to feel remorse. As you already know how to invest, do cancel it. Apart from the initial high cost, the transactional fees are normally high as well.