Just signed an ILP...

[AteByYourself]

Thanks for all of your insights, will cancel it

 

[Value.Matrix]

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.

If you are really good at choosing funds and investing, 101 ILPs with startup bonus can outperform 25 years later, with no estate duty charge at all. However i doubt anyone can since most at money mind do ETFs/individual stocks and not funds.

Of course, not all ILPs are created the same. Especially those protection ILPs. With 30% to 120% allocation later.

In short avoid anything that is not in your circle of competence.

 

[limster]

If you are really good at choosing funds and investing, 101 ILPs with startup bonus can outperform 25 years later, with no estate duty charge at all.

is that what agents are telling gullible clients nowadays, that ILP no estate duty but buy stocks got estate duty?

 

[Value.Matrix]

is that what agents are telling gullible clients nowadays, that ILP no estate duty but buy stocks got estate duty?

Touchy. As Singaporeans using brokers, US stocks has a 60k tax exempt. Any asset higher than that is subjected to estate duty tax.

For irish domiciled etfs, check out ShinyThings or BBCwatcher comments.

No point bringing in weird comments that add no value anyway. Oh yar. This is Money Mind instead of EDMW?

Waiting for people to value add instead of +1 or any other comments.

 

[joshua182]

can share pic of agent?

oh and free look it..

 

[BBCWatcher]

Touchy. As Singaporeans using brokers, US stocks has a 60k tax exempt. Any asset higher than that is subjected to estate duty tax.

It doesn't matter for these purposes whether they're Singaporeans, Egyptians, or Martians, or whether they use a broker, insurance company, Employee Stock Purchase Plan, bank, direct investment program, advisor, or their cousin Vinnie.

For irish domiciled etfs, check out ShinyThings or BBCwatcher comments.

Or you could just tell people the simple truth that all non-U.S. assets held by non-U.S. persons are not subject to U.S. estate tax. Insurance companies offer absolutely nothing special here. Indeed, insurance company ILPs in Singapore are often less than special in tax terms due to typically less favorable dividend tax treatment.

 

[Value.Matrix]

It doesn't matter for these purposes whether they're Singaporeans, Egyptians, or Martians, or whether they use a broker, insurance company, Employee Stock Purchase Plan, bank, direct investment program, advisor, or their cousin Vinnie.


Or you could just tell people the simple truth that all non-U.S. assets held by non-U.S. persons are not subject to U.S. estate tax. Insurance companies offer absolutely nothing special here. Indeed, insurance company ILPs in Singapore are often less than special in tax terms due to typically less favorable dividend tax treatment.

Thanks for adding in. Absolutely agree with you.

 

[limster]

Or you could just tell people the simple truth that all non-U.S. assets held by non-U.S. persons are not subject to U.S. estate tax. Insurance companies offer absolutely nothing special here. Indeed, insurance company ILPs in Singapore are often less than special in tax terms due to typically less favorable dividend tax treatment.

Asking insurance agent to tell the simple truth? That a low-cost diversified portfolio using Irish-domicled ETFs currently not subject to estate tax will outperform a high cost ILP?

It is difficult to get an agent to tell the simple truth when his salary depends on his client not learning the simple truth

 

[Value.Matrix]

It is difficult to get an agent to tell the simple truth when his salary depends on his client not learning the simple truth

It is also difficult to get facts and figures from bias people.

And the assumption that any person who does not is assumed to be an agent.

Or for the matter, avoid anything that is not your circle of competence.

Or even Buy term and invest the rest, but doesnt do a double take calculation (can they even though) to confirm the numbers.

ILP lost their place in this era because we are in an exciting economy with robos, lower transaction fees from IBRK and TD ameritrade etc. None of which come from those who criticise. Wow.

 

[FinalDestiny...]

It is also difficult to get facts and figures from bias people.

And the assumption that any person who does not is assumed to be an agent.

Or for the matter, avoid anything that is not your circle of competence.

Or even Buy term and invest the rest, but doesnt do a double take calculation (can they even though) to confirm the numbers.

ILP lost their place in this era because we are in an exciting economy with robos, lower transaction fees from IBRK and TD ameritrade etc. None of which come from those who criticise. Wow.

Talking about ILPs in MM is taking a position contrary to general opinion here.. with good reason, as ILPs with a high insurance % causes a huge drag in performance. The commission fees paid to agents are substantial too.

Tbh, my 101 ILP is performing the best amongst my robo and RSP. It is still early days but the results are what it is, hopefully it still does well in the long run

 

[Hazette1]

Asking insurance agent to tell the simple truth? That a low-cost diversified portfolio using Irish-domicled ETFs currently not subject to estate tax will outperform a high cost ILP?

It is difficult to get an agent to tell the simple truth when his salary depends on his client not learning the simple truth

Agree somewhat. There’s this lady agent who tendered notice telling me not to buy her product. I must be a lucky few

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[iMac]

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?

Terminate within 14 days.

You means it was so hassle free till the charges were not make known to you? And you happily signed on the dotted line?

 

[icoolboy123]

ILP Advice

Hi, I am in a similar situation. I have an ILP that my dad started to buy for me and I didn't know the terms of the policy until I got older. It

My situation right now is that the ILP 1st few years of premium have been paid and now 100% premium goes into the investment (AIA regional equity fund) and it also provides some protection (death and TPD). I am also aware of the relatively high management fees of the fund (1.25%). However, AIA's funds seem to do relatively well over the long term as well. Because of the sunk cost (1st few years of premium where not all allocated to the fund) and the long term view where after 10 years, 105% of the premium are allocated to the fund, I would like to ask you experienced people, what I should do moving forward considering my circumstances.

The options available to me now which I researched on are:
(1) Surrender and incur the surrender fees (50% of 1st year premium)
(2) Go on premium holiday and retain the protection
(3) Continue paying premium and play the long game to achieve the 105% premium allocation (but still, 1.25 TER management fees)
(4) Same as (3) but do a fund switch (and if you recommend a fund switch, which AIA fund do you recommend?)

So what would you guys recommend?

 

[boredboiboi]

Hi, I am in a similar situation. I have an ILP that my dad started to buy for me and I didn't know the terms of the policy until I got older. It

My situation right now is that the ILP 1st few years of premium have been paid and now 100% premium goes into the investment (AIA regional equity fund) and it also provides some protection (death and TPD). I am also aware of the relatively high management fees of the fund (1.25%). However, AIA's funds seem to do relatively well over the long term as well. Because of the sunk cost (1st few years of premium where not all allocated to the fund) and the long term view where after 10 years, 105% of the premium are allocated to the fund, I would like to ask you experienced people, what I should do moving forward considering my circumstances.

The options available to me now which I researched on are:
(1) Surrender and incur the surrender fees (50% of 1st year premium)
(2) Go on premium holiday and retain the protection
(3) Continue paying premium and play the long game to achieve the 105% premium allocation (but still, 1.25 TER management fees)
(4) Same as (3) but do a fund switch (and if you recommend a fund switch, which AIA fund do you recommend?)

So what would you guys recommend?

105% because and dont forget the bid offer spread of 5%

 

[icoolboy123]

105% because and dont forget the bid offer spread of 5%

I see. Thanks man! So between option 3 and 4, do you have any recommendation on whether I should switch to other AIA funds (I know this might sound lazy and I should probably do my research based on my risk appetite and growth of the fund, so you can ignore this if you find it pointless).

Also, there appears to be a possibility of premium top-up, would that be recommended too? Because while the 105% premium allocation is attractive, the TER of 1.25 to 1.5% feels quite painful, especially over the long term as AUM increases

 

[boredboiboi]

I see. Thanks man! So between option 3 and 4, do you have any recommendation on whether I should switch to other AIA funds (I know this might sound lazy and I should probably do my research based on my risk appetite and growth of the fund, so you can ignore this if you find it pointless).

Also, there appears to be a possibility of premium top-up, would that be recommended too? Because while the 105% premium allocation is attractive, the TER of 1.25 to 1.5% feels quite painful, especially over the long term as AUM increases

I would want to read the plan to see if is better to stop premium or surrender the plan. Old plan usually can stop anytime without penalty. But depends.
If can surrender and put at other better places, why not? And do you need the coverage? Do you have any conditions that stop u from getting a coverage plan if u were to stop? Alot of questions to asked actually.

 

[newjersey]

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?

you must be living in a cave to think that ILP is a decent investment vehicle.

 

[icoolboy123]

I would want to read the plan to see if is better to stop premium or surrender the plan. Old plan usually can stop anytime without penalty. But depends.
If can surrender and put at other better places, why not? And do you need the coverage? Do you have any conditions that stop u from getting a coverage plan if u were to stop? Alot of questions to asked actually.

If I stop paying premium, the policy goes on policy holiday and I am still covered (with a fee deducted each month for the coverage). Surrendering the plan would cost me 50% of first year premium.

I understand that there seem to be better places to put the money but considering that 100% premium are now given 105% allocation to a fund, and the sunk cost thrown in, would it make sense to continue paying the premium.

I am sort of undecided because of competing factors. On one side, I understand that ILP is not the best investment vehicle around. On the other, I see the sunk cost and the 105% premium allocation which sounds decent. So that's why I am hoping for some advice from you experienced lot! Thankful for any advice or perspective that you guys can give

 

[boredboiboi]

If I stop paying premium, the policy goes on policy holiday and I am still covered (with a fee deducted each month for the coverage). Surrendering the plan would cost me 50% of first year premium.

I understand that there seem to be better places to put the money but considering that 100% premium are now given 105% allocation to a fund, and the sunk cost thrown in, would it make sense to continue paying the premium.

I am sort of undecided because of competing factors. On one side, I understand that ILP is not the best investment vehicle around. On the other, I see the sunk cost and the 105% premium allocation which sounds decent. So that's why I am hoping for some advice from you experienced lot! Thankful for any advice or perspective that you guys can give

Nv heard of such surrender criterial. Either % of whole for surrender, nv heard of only base on 1st.

 

[davidtanwei]

I check online that I had $3000 premium holiday amount. I remember 20 years back my agent say this premium holiday can used for holiday. I recently ask him to help me withdraw this 3k. He advised me don't touch better unless really need it. This if withdrawn will affect the policy and other stuff. Can this be withdraw out as cash? Or only used to help continue the monthly premium payment? If I surrender the policy and this premium holiday amount won't be added in, wouldn't it be better to used up first before surrender? Anyone can help on this