Need help on ILP

[jingsen]

An agent from AIA approached me to convince me to sign up for an ilp called Family First and so, my problem is that I'm not really knowledgeable about all the terms and stuff relating to insurance so any help in this would be appreciated.
Anyway, it's obvious that any insurance policies and ilp all have their good and bad points, but what I'm interested to know is that does this ILP have any hidden dangers etc that I should take note of, or if signing up for the minimum of $100/month be something that can be useful to me in the long term? Cause the agent certainly described this plan as extremely beneficial to me as I can let the money 'grow' to a sizeable amount eg $100/mth let's you earn up to 270k after 45 years. Thx in advance

 

[jingsen]

Questions that I would like an answer to:

1) Will I have a chance to lose all the money that I spend in this policy due to some incident?

2) let say I signed up for this policy, if I terminate it almost immediately, can I get back all the money that I spent on it? Or will there be charges etc that will cause me to incur some losses.

 

[havetheveryfun]

An agent from AIA approached me to convince me to sign up for an ilp called Family First and so, my problem is that I'm not really knowledgeable about all the terms and stuff relating to insurance so any help in this would be appreciated.
Anyway, it's obvious that any insurance policies and ilp all have their good and bad points, but what I'm interested to know is that does this ILP have any hidden dangers etc that I should take note of, or if signing up for the minimum of $100/month be something that can be useful to me in the long term? Cause the agent certainly described this plan as extremely beneficial to me as I can let the money 'grow' to a sizeable amount eg $100/mth let's you earn up to 270k after 45 years. Thx in advance

if u don't know or not sure.. just stay away from it first.

All insurance policies and ilp have their good and bad points.. but 90% of people here in this forum will say ilp has 0 good points. better don't touch ilps at all

 

[anfielder]

Questions that I would like an answer to:

1) Will I have a chance to lose all the money that I spend in this policy due to some incident?

2) let say I signed up for this policy, if I terminate it almost immediately, can I get back all the money that I spent on it? Or will there be charges etc that will cause me to incur some losses.

If you terminate anytime in the first 5 years, you won't get anything even remotely close to what you paid. It will likely take more than a decade to break even. That's because there's tons of fees and commissions that the agent may or may not have told you about.

 

[TabascoSauce]

The onli good point about ilp is that it helps the agents earn a lot of commission.

From ur impression of ilp, I can tell ur agent fail to inform u the pros and cons of ilp adequately and is onli interested in milking u. He is a crook. Find another one.

 

[oceanicmanta]

Questions that I would like an answer to:

1) Will I have a chance to lose all the money that I spend in this policy due to some incident?

2) let say I signed up for this policy, if I terminate it almost immediately, can I get back all the money that I spent on it? Or will there be charges etc that will cause me to incur some losses.

pls stay away from ILP

- if u terminate within 2 weeks free look, u shld be able to get most money back
- after which, if u terminate with 2-3yrs, you may not get any money back
- you could lose a lot if the funds invested in does not do well
- fees & charges associated with ILPs are very high, and grow exponentially with age
- at later age, perhaps 55yrs, the charges will be higher than the $1200 annual premiums u pay. Ask the agent what r the charges at 50yo & 55yo
- agent gets high commissions for ILPs

270k after 45yrs is NOT GUARANTEED amount. Ask the agent how much of this 270k is guaranteed after 45yrs

i suspect once u get an ILP, the agent would propose Critical Illness, Disability Illness options etc to tag onto this ILP, citing its cheaper. What will happen is that it becomes very complicated & more difficult to terminate in future bcos of fear of losing coverage. Painful.

if u looking to save, best put the $100 into a regular savings plan from a bank to invest in stocks

Ask a IFA to quote for Term Plan for Death, TPD (or consider SAF GTL), and quotes for standalone Critical Illness.

Is your Hospitalisation plan settled ?

Dont mix Investment with Insurance

 

[starfish.starfish]

Based on my personal experience - stay away from ILP.
My ILP is now 10 yrs long and it's still underwater but I hv to live with it.
Don't mix investment with insurance.

 

[anfielder]

Based on my personal experience - stay away from ILP.
My ILP is now 10 yrs long and it's still underwater but I hv to live with it.
Don't mix investment with insurance.

If you don't have any health issues you can terminate and switch to term. Don't let them continue to milk you.

 

[Jupiter2017]

Refer to replies in the recent 2 threads:

http://forums.hardwarezone.com.sg/m...linked-policy-what-should-i-do-5706240-2.html

http://forums.hardwarezone.com.sg/money-mind-210/another-ilp-thread-5709618.html

 

[starfish.starfish]

If you don't have any health issues you can terminate and switch to term. Don't let them continue to milk you.

Yup unfortunately my health conditions have changed.
It's them or nothing.

 

[jingsen]

Alright so what you guys are saying is that the ILP is a no go? Haven't bought it yet but thanks for the advices

Was reading other posts on ILPs and see how ppl say that they are still in the red after 10+ yrs, so basically, the returns are dependent on external factors right?

By the way, are there any policies that you guys recommend that can cover my various needs? Health, money growth etc

And can anyone inform me what is up with the free look period and how it can be done? Had a friend who actually bought this ILP a few days ago and I'm interested in case I make any mistakes in the future thx

 

[TabascoSauce]

Alright so what you guys are saying is that the ILP is a no go? Haven't bought it yet but thanks for the advices

Was reading other posts on ILPs and see how ppl say that they are still in the red after 10+ yrs, so basically, the returns are dependent on external factors right?

By the way, are there any policies that you guys recommend that can cover my various needs? Health, money growth etc

And can anyone inform me what is up with the free look period and how it can be done? Had a friend who actually bought this ILP a few days ago and I'm interested in case I make any mistakes in the future thx

It does not solely depend on external factor. The whole product was designed to milk ppl without financial knowledge.

Insurance go for term to cover premature death. Hospitalisation and surgical is a must in Singapore - get rider if u can afford it. Those 2 are essential. Other good to have insuracne are critical illness and accident.

For investment. If u dunno how, jus stick to riskless Singapore saving bonds, fixed deposit, cpf TOP up or even high interest saving account (e.g. Citibank maxigain).

If u r willing to pick up some BASIC knowledge on investment, u can consider purchasing etf regularly to form ur riskier but potentially higher return portfolios.

Free look period jus means u won't incur commission or whatever admin fee if u terminate ur plan within that period. But note that it doesn't mean u will get back 100%.

 

[akwl88]

coverage for death, tpd and ci - get a term plan

coverage for hospitalization - get a isp

coverage for accidents and other funny things - good to have if u got extra money to spend, not a need to have

 

[akwl88]

if the ilp does not guaranteed you >5% IRR, it is a rubbish product

 

[akwl88]

An agent from AIA approached me to convince me to sign up for an ilp called Family First and so, my problem is that I'm not really knowledgeable about all the terms and stuff relating to insurance so any help in this would be appreciated.
Anyway, it's obvious that any insurance policies and ilp all have their good and bad points, but what I'm interested to know is that does this ILP have any hidden dangers etc that I should take note of, or if signing up for the minimum of $100/month be something that can be useful to me in the long term? Cause the agent certainly described this plan as extremely beneficial to me as I can let the money 'grow' to a sizeable amount eg $100/mth let's you earn up to 270k after 45 years. Thx in advance

ilp are beneficial to agents only

they kio a lot of commissions from ilps

 

[anfielder]

if the ilp does not guaranteed you >5% IRR, it is a rubbish product

ILP doesn't have any guaranteed value. Policyholder takes all the risk and agent gets guaranteed commissions.

 

[akwl88]

ILP doesn't have any guaranteed value. Policyholder takes all the risk and agent gets guaranteed commissions.

Which is why they are rubbish products

The only 101% guaranteed in the insurance industry is agent's commissions

 

[jingsen]

What does one need to terminate the contract at the customer centre?
Does he need the physical document or just the policy number?

 

[akwl88]

What does one need to terminate the contract at the customer centre?
Does he need the physical document or just the policy number?

Original policy plus ur ic

 

[Shion]

An agent from AIA approached me to convince me to sign up for an ilp called Family First and so, my problem is that I'm not really knowledgeable about all the terms and stuff relating to insurance so any help in this would be appreciated.
Anyway, it's obvious that any insurance policies and ilp all have their good and bad points, but what I'm interested to know is that does this ILP have any hidden dangers etc that I should take note of, or if signing up for the minimum of $100/month be something that can be useful to me in the long term? Cause the agent certainly described this plan as extremely beneficial to me as I can let the money 'grow' to a sizeable amount eg $100/mth let's you earn up to 270k after 45 years. Thx in advance

$100/month and earn up to 270k after 45 years ?
Saving $500/month for 45 years is also 270k, and is guaranteed if you save $500 per month for the next 45 years.

ILP has insurance charges that increases every year.

Good read:
http://dollarsandsense.sg/the-ugly-truths-behind-investment-linked-policies/