Question regarding ILP

[windwaver]

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.




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.

Pretty nice write up and I agree on what you've pointed out.

Many times, a lot of agents are motivated by $$ and a life of sitting back and collecting commission. Unfortunately, most are not motivated with the intention of helping you plan your life.

Not trying to scare people but I have an agent that I supported when she first started 18 years ago. I even got a few referrals for her and it was these bunch of people that made her into a multiple MDRT agent today.

It took 18 years to see what can happen to a person when motivated by money instead of a genuine desire to help.

I don't blame people for hating insurance agents so much.

 

[maruikun]

Not trying to scare people but I have an agent that I supported when she first started 18 years ago. I even got a few referrals for her and it was these bunch of people that made her into a multiple MDRT agent today.

It took 18 years to see what can happen to a person when motivated by money instead of a genuine desire to help.

The only agent that you will want to support is your future wife or lovely mistress. Common sense would have tell you that you can only see your MDRT agent drive luxury car, but she won't be able to drive you. You can only see your MDRT agent live in luxury house, but she won't be able to live with you. You can only see your MDRT agent goes luxury overseas trip, but she won't be able to go with you.

After purchasing plans from an agent, what do you expect your agent to do? Meet you daily for chit-chat and follow up? The so called yearly review is not necessary in my opinion. How often does our profile and needs change? And for your info my MDRT agent does not follow up with me for few years and when she does follow up with me recently, it was to advise me to take up new plan. This is the harsh truth.

There is very slim chance or should I say not possible to find someone who is not motivated by money but with a genuine desire to help. Those are called charity advisor not financial advisor.

 

[akwl88]

True words by bro maruiken

And pple think that agents put in lots of effort for their clients

Even worse is agents ownselves believe they are hardworking. Talk about ownself check ownself lol

Their sole purpose is only to get more commisions. This is done through selling more plans and their downlines.

Just look at their monthly awards. All are based on sales figures and not by helping their clients.

Any agent kenna MDRT by helping their clients claim fast and 100% payout, getting higher returns for their policies, optimising their insurance?

Zero.

 

[Shion]

They are salesman, we are customers. Goods sold, risks transferred, transaction has ended.

 

[akwl88]

Question: “Today I met a financial adviser for retirement planning who encouraged me to do dollar cost avearging. I was very impressed with him. I told the adviser that I got $500,000 to invest for retirement. He instead recommended that I 'go slow' by investing a small amount in order to avoid investing at the peak of the market. I understand its called dollar cost averaging. I was recommended to invest $1500 a month. I am amazed that he did not take all my money but only a very small amount.”

Answer: I checked the product you bought. It is an investment-linked policy designed for 30 years holding period. Meaning, you have to pay $1500 a month for 30 years otherwise the cost will be very large. At your age of 59 years old, it means you have to continue to pay this regular premium until you are 89 years old! In initial years, your surrender value is little or none at all. The total distribution cost (which is approximately the total commission) is $20,000.

If you had bought an annuity as lump sum of $500,000, the total distribution cost is $7500. If you had bought unit trust worth $500,000, the total distribution cost is $0 because sales charge these days is 0%.

Dollar cost averaging is usually done over one market cycle. While the length of each market cycle is unknown until it has come to past, dollar cost averaging is usually done over just one to two years. It is no point doing dollar cost averaging over 30 years. The bulk of your money would be deflated due to the erosive effect of inflation.

Do you think the adviser have your interest at heart? You may like to read this Hong Kong news article: Hong Kong consumers angry after being sold complex insurance product ILAS

https://www.ifa.sg/dollar-cost-averaging/

wow like that also can call DCA?

now insurance agents jin power at playing with words