Question regarding ILP

[NeedHeIp]

Hi guys,

This thread is a continuation from here

http://forums.hardwarezone.com.sg/eat-drink-man-woman-16/should-i-cancel-my-ilp-policy-5550630.html

forumers advised me to post here in moneymind as there're more experts here.
please advise guys.

 

[anfielder]

You should copy your query from the other thread to make it easier for people to know what you are asking about.

Well, looks like this is primarily a investment plan and the insurance component is small.

It's not the most efficient way to invest, but nowhere near as bad as most other ILPs out there since you don't start by giving half the first year premium to the agent who sold you the plan. It looks similar to a unit trust regular savings plan, but likely with higher fees.

 

[anfielder]

Looking through some replies from the other thread, it is clear that some people don't seem to know that there are different types of ILP. You'll be glad to know the one you purchased is less toxic than the garden variety ILP that gives it such a bad name.

You should still consider switching to ETFs instead though.

 

[Asphodeli]

TS you should request the mod to move the thread here so that you will get better quality replies...

 

[NeedHeIp]

TS you should request the mod to move the thread here so that you will get better quality replies...

Yes please can mod help to merge thread?

 

[JoePilot]

Let me repost what I posted in the other thread:

Let me simplify TS's "problem":

1. He already prepared 90k to fully fund 10yrs premium. (No affordability issue)
2. He bought from his trusted Pru agent.
3. He login into his portal, and discovered a small profit already. (Net of charges, not bad leh!)
4. He read abt some anti-ILP stuff online, and got worried

So, dear TS...what exactly is the problem?

Sent from PAP Bedok HQ using GAGT

 

[koreanlover]

Let me repost what I posted in the other thread:

Let me simplify TS's "problem":

1. He already prepared 90k to fully fund 10yrs premium. (No affordability issue)
2. He bought from his trusted Pru agent.
3. He login into his portal, and discovered a small profit already. (Net of charges, not bad leh!)
4. He read abt some anti-ILP stuff online, and got worried

So, dear TS...what exactly is the problem?

Sent from PAP Bedok HQ using GAGT

Returns can be low.

 

[MZC001]

Planning to withdraw my ilp

I signed up for an ILP in mid nov 2016 and Im 2 months into the plan. Anyone knows how many percent roughly I can get back if I withdraw now? My plan is the AIA Family First Protect plan.

I am a student and I signed up thinking it would serve as a good form of passive income for me and probably because of the persuasion of the insurance agent. But after reading so many bad reviews I feel so cheated. I know I cant get back my original amount now but I just hope anyone can help me with how I can maximise my returns like should I continue to stay in this plan for now or withdraw immediately? Would appreciate any help thank you!

*Posted this in another thread as well. But wanted to get more help

 

[oceanicmanta]

I signed up for an ILP in mid nov 2016 and Im 2 months into the plan. Anyone knows how many percent roughly I can get back if I withdraw now? My plan is the AIA Family First Protect plan.

I am a student and I signed up thinking it would serve as a good form of passive income for me and probably because of the persuasion of the insurance agent. But after reading so many bad reviews I feel so cheated. I know I cant get back my original amount now but I just hope anyone can help me with how I can maximise my returns like should I continue to stay in this plan for now or withdraw immediately? Would appreciate any help thank you!

*Posted this in another thread as well. But wanted to get more help

http://www.comparefirst.sg/wap/prodSummaryPdf/201106386R/WA_Sum_201106386R_FFP01032015_Jan 2015.pdf

looking at this, it seems 20% of premiums in the first year is used to buy fund units. so u shld have some units allocated.

Do u remember which fund u selected to invest in ? if not, ask agent. Then, look at the historial & track the fund prices over next few months, then consider best time to sell the units.

If bought in Nov, the markets shld have risen a little since then.

I dont think ILP is suitable for a student.

 

[anfielder]

I signed up for an ILP in mid nov 2016 and Im 2 months into the plan. Anyone knows how many percent roughly I can get back if I withdraw now? My plan is the AIA Family First Protect plan.

I am a student and I signed up thinking it would serve as a good form of passive income for me and probably because of the persuasion of the insurance agent. But after reading so many bad reviews I feel so cheated. I know I cant get back my original amount now but I just hope anyone can help me with how I can maximise my returns like should I continue to stay in this plan for now or withdraw immediately? Would appreciate any help thank you!

*Posted this in another thread as well. But wanted to get more help

You will likely get next to nothing back. But consider yourself lucky to have only paid for two months. You will lose a lot more by continuing.

 

[MZC001]

looking at this, it seems 20% of premiums in the first year is used to buy fund units. so u shld have some units allocated.

Do u remember which fund u selected to invest in ? if not, ask agent. Then, look at the historial & track the fund prices over next few months, then consider best time to sell the units.

If bought in Nov, the markets shld have risen a little since then.

I dont think ILP is suitable for a student.

Hi thank you very much for the reply! I will look into it and get my agent to help me with it! i think some india and china funds. I think they have some policy that if I withdraw before 1 year then i can only get back 50% of what i invested in.

 

[MZC001]

You will likely get next to nothing back. But consider yourself lucky to have only paid for two months. You will lose a lot more by continuing.

Hi there thanks for the reply! Oh no thats pretty bad:/ I actually paid for one full year already in advance. So Im afraid they will charge me based on the one year amount.

 

[Shion]

I signed up for an ILP in mid nov 2016 and Im 2 months into the plan. Anyone knows how many percent roughly I can get back if I withdraw now? My plan is the AIA Family First Protect plan.

I am a student and I signed up thinking it would serve as a good form of passive income for me and probably because of the persuasion of the insurance agent. But after reading so many bad reviews I feel so cheated. I know I cant get back my original amount now but I just hope anyone can help me with how I can maximise my returns like should I continue to stay in this plan for now or withdraw immediately? Would appreciate any help thank you!

*Posted this in another thread as well. But wanted to get more help

Will not be a lot. May be nothing as well, depending on what funds you investing in

 

[anfielder]

Hi thank you very much for the reply! I will look into it and get my agent to help me with it! i think some india and china funds. I think they have some policy that if I withdraw before 1 year then i can only get back 50% of what i invested in.

Do you have any other investments? If not, emerging market funds like China and India funds are unsuitable for you.

 

[anfielder]

Hi there thanks for the reply! Oh no thats pretty bad:/ I actually paid for one full year already in advance. So Im afraid they will charge me based on the one year amount.

Yeah that's too bad.

But please don't let that stop you from canceling. I cancelled both my ilp after 9-12 years, and they were still in the red even after factoring in the insurance charges. It's better to cut your losses now.

 

[MZC001]

Do you have any other investments? If not, emerging market funds like China and India funds are unsuitable for you.

No i dont have any other kinds of investment under this ilp. The agent selected these two for me. She said she invested in them as well.

 

[MZC001]

Yeah that's too bad.

But please don't let that stop you from canceling. I cancelled both my ilp after 9-12 years, and they were still in the red even after factoring in the insurance charges. It's better to cut your losses now.

Sorry to hear about that. Thank you for your advice. Just that as a student this investment was quite a significant amt to me, especially when I chose a relatively high premium. But I should have made a more thorough research initially as well. But thanks for your help!

 

[Maeda_Toshiie]

Fire your advisor. Selling an ILP to a student is simply wrong. The premiums required for an ILP are not meant for students to pay.

 

[akwl88]

Chiu are student now buy simi ilp?

Chiu shld start saving an emergency fund first.

Concentrate on saving money first.

Dont kenna conned half ball by female agents lol

 

[maruikun]

The textbook knowledge on financial planning to set aside savings for emergency fund is really important. Life is like a box of chocolates you never know what you gonna get. My sibiling has to stop work temporary due to unforeseen cirumstances and her emergency fund is covering expenses at the moment.

Bear in mind that insurance do not cover for "rainy days" so there is no harm to start saving early and do not over reliance on your parents. Please make sure you have emergency fund before your insurance agent sells you an endowment plan. Emergency fund is priority not ilp plan.

No i dont have any other kinds of investment under this ilp. The agent selected these two for me. She said she invested in them as well.

Never believe what an agent says. These are sales marketing tactic to entice consumer to sign up for such plan. If you have read through the ilp threads in this forum, you would have know that ilp plan charges exorbitant fees. Majority of the agents are "aware" ilp is a bad product just that they need the commission to sustain their ricebowl.