need advice on ILP

[hachi]

I bought Ilp 20 yrs ago when I was young. Now stuck because it is tied to my life insurance. My recent years illnesses cannot be covered by new insurance or else will be loaded with higher premium.

Then later agent propose another Ilp to me, I didn't take up, as I learnt how to invest by myself. Currently my stocks doing better than the Ilp estimated returns.

From every angle, Ilp is not suitable for me (and maybe also not for everyone). Agent will earn from this policy, fund manager also earned from my investment portion annually, and my insurer also charging me for the using their lousy investment platform interface. Then at older age they apportion more towards insurance cost than my investment. End up everyone is taking a cut from my ilp, then where got much leftovers? Meaning that whether in good or bad years, I am paying them for the services. If I invest by myself, I don't sell my investment shares during bad years, I won't incur any charges. Btw their charges I find them quite high and unreasonable.

And they held onto your fund and cannot guarantee anything.... But they can take whatever management fee as they deem fit...

 

[popsune1]

No, investment-linked policies (ILPs) do not have guaranteed returns of 20% per annum. In fact, ILP returns are completely unguaranteed and depend on the market performance of the underlying unit trusts you choose.

Why ILP Returns Are Not Fixed or High

No Guarantees: The value of an ILP goes up and down based on market conditions. You can lose money or make less than expected.

High Fee Drag: ILPs deduct various fees—such as insurance charges, policy administration fees, and fund management fees—which typically cost 2% to 3% annually and eat into your net performance.

Front-End Loading: In the early years of a regular premium ILP, a large portion of your money goes toward fees or low allocation rates rather than buying investment units, meaning it takes time just to break even.

Financial Consensus: Most users on communities like Reddit agree that ILPs generally yield lower net returns compared to buying separate term insurance and investing in low-cost index funds on your own.

 

[wutawa]

20% yield is super attractive. I would put all my money in!

 

[Timber_Wolf]

Don't say 20%, even 10% per annum is very high.
Most likely it's 20% over a certain number of years and non guaranteed return. e.g 20% over 5 yrs, so it's average of 4% per annum. They never say per annum, so technically not wrong..

 

[swenson]

I myself have bought some ILPs many years back with promises of high returns

When matured and redeemed, the final sum is almost the same as the premiums put in ==> lost out in compound interest and better investment opportunities

ILP is crap

 

[Gondon72]

Many many years ago for the ILP, all the first year moolah is tio jiak 100% as commission wor..now still the same?

 

[tiopwndeepdeep]

1. He suggest 1k/ month but 15 year lock in period.
2. GE wealth advantage 4.
3. Good question. But he has shown dividend returns of even 30% from first year investment with his other client too.

1. What is the percentage of your monthly payment being used for investing in unit trust?
2. What market unit trust this FA suggest to you?
3. 20% per annum is based on how many years in?

 

[lbcben]

don buy , all scam
regardless of which company, whatever plan, all scam, hard or impossible to even break even
I buy saver plan, not ILP, pay for 15 years, short of $$$, still loss 2k, when surrender, last time say , after 7 years will break even.

now i happily collect DBS, Keppel dividend

 

[tiopwndeepdeep]

FA is chio and dua liap right.

FA is a man

 

[rarenick]

So far has anyone heard of Ilp policyholders praising the Ilp when redeeming the policy?

 

[tiopwndeepdeep]

Don't say 20%, even 10% per annum is very high.
Most likely it's 20% over a certain number of years and non guaranteed return. e.g 20% over 5 yrs, so it's average of 4% per annum. They never say per annum, so technically not wrong..

he says it’s per annum.

 

[rogueartichoke]

I regret taking ILP in 2022 lol no matter what you do avoid it at all cost. no one except for FAs will recommend it LOL

 

[straycurrent]

20% per no need advertise, people will come to it, still waiting for you to buy. You slowly wait....

 

[tiopwndeepdeep]

based on what I understand, the dividend yield is very high because it’s from multiple sub funds. He says he can guide us to switch between the sub-funds with no fund switching fee and be entitled to the dividends. That’s why can have such high dividends because it’s from multiple sub-funds not just ones.

As some more first year there’s even an additional sign up bonus.

 

[rarenick]

he says it’s per annum.

He will also tell u their fund outperforms s&p500. But this is when in good years. In bad years, not only not making money, u still pay for fund management and platform fees.

 

[rarenick]

based on what I understand, the dividend yield is very high because it’s from multiple sub funds. He says he can guide us to switch between the sub-funds with no fund switching fee and be entitled to the dividends. That’s why can have such high dividends because it’s from multiple sub-funds not just ones.
As some more first year there’s even an additional sign up bonus.

First year bonus is to bait u la. Money lock up is for decades. Don't be penny wise pound foolish.

 

[FORSTA]

which salesperson will ever say their products not good de.. use some common sense. just bait nia, until you buy already then hosay. all the headache start to appear

 

[krikering]

Can anyone shed more light on how they think of this ILP as well - Singlife Savvy Invest II ILP ?

https://singlife.com/en/investment-...MIqqXPhqqJlgMVWJJmAh2sVA0rEAAYASABEgKRz_D_BwE

 

[tiopwndeepdeep]

Anyone do this strat before? Able to say why his dividend and fund switching hack don’t work?

There’s no promise to beat S&P and he emphasis returns are of course not guaranteed which makes him seem credible to me.

 

[rarenick]

U better check how much will your insurance cost be when u redeem or when u are 80 years old. It will likely be much more expensive than a standard life policy. They will say your investment gains will cover the high cost. I advise u better don't take this risk.