Seek advise on ILP

[killerer]

Hi everyone. Need some advise on my ILP. I will keep it simple. Consistent monthly payments of $100 and some initial top-ups. I have other insurances too.

AXA Inspire Flexi 2
Started 2007-now (11 years)
Total premiums paid: $16k
Current Value: $14k
Sum Assured: $50k

1. Should I stop paying n let the Sum Assured continue to be paid by Current Value?
2. Should I stop paying and cash out?
3. Should I just continue? Projected break even Year 25.

Gut feel is to take Opt 1. Thanks in advance.

 

[limster]

projected break-even is 25 years and you still bought it?

note that projected is not guaranteed break-even. might break even after 30, 35 years?

 

[crimsontactics]

projected break-even is 25 years and you still bought it?

note that projected is not guaranteed break-even. might break even after 30, 35 years?

Cannot see like this.

He only invest $100 a month.

Imagine if he put into stocks, the commission would have taken up 20+% of his capital.

Sent from . using GAGT

 

[oceanicmanta]

For an ILP, the breakeven year does not mean anything.

The value of your units go up or down based on the performance of the fund invested. What fund is it invested in now ?

By opting for 1, you are using your Units' Value to pay for your Premiums. Your value will not grow much as no new funds are invested.

What was your original intent when buying this policy (ie cover Death & TPD, Critical Illness or Investment) ? Do you have other insurance coverage ? If you cancel, do you have other insurance to cover the same thing ?

If I were you, I would get a simple Term Plan & cancel this ILP.

 

[Maeda_Toshiie]

Cannot see like this.

He only invest $100 a month.

Imagine if he put into stocks, the commission would have taken up 20+% of his capital.

Sent from . using GAGT

He pays only $1 of commission if he DCAs via POSB RSP.

 

[Maeda_Toshiie]

Hi everyone. Need some advise on my ILP. I will keep it simple. Consistent monthly payments of $100 and some initial top-ups. I have other insurances too.

AXA Inspire Flexi 2
Started 2007-now (11 years)
Total premiums paid: $16k
Current Value: $14k
Sum Assured: $50k

1. Should I stop paying n let the Sum Assured continue to be paid by Current Value?
2. Should I stop paying and cash out?
3. Should I just continue? Projected break even Year 25.

Gut feel is to take Opt 1. Thanks in advance.

Underlying invested fund?
Fund growth to date p.a.?
Mortality charges?

 

[killerer]

For an ILP, the breakeven year does not mean anything.

The value of your units go up or down based on the performance of the fund invested. What fund is it invested in now ?

By opting for 1, you are using your Units' Value to pay for your Premiums. Your value will not grow much as no new funds are invested.

What was your original intent when buying this policy (ie cover Death & TPD, Critical Illness or Investment) ? Do you have other insurance coverage ? If you cancel, do you have other insurance to cover the same thing ?

If I were you, I would get a simple Term Plan & cancel this ILP.

Thanks for the advise.

This was my very first insurance to cover both inv and ins with a meagre salary. Now i have separate ins n inv policies n amplely covered.

So wondering what i shud do without revealing too much details about the funds etc. So just base on simple put in money and get back returns, isit worth keeping.

 

[JuniorLion]

Thanks for the advise.

This was my very first insurance to cover both inv and ins with a meagre salary. Now i have separate ins n inv policies n amplely covered.

So wondering what i shud do without revealing too much details about the funds etc. So just base on simple put in money and get back returns, isit worth keeping.

Not worth keeping. You're better off surrendering and putting in $100/month into POSB Regular Savings Plan (Savers Invest) into Nikko AM STI ETF. Or into $500/month into OCBC Blue Chip Investment Plan (SPDR STI ETF).

 

[Shion]

Thanks for the advise.

This was my very first insurance to cover both inv and ins with a meagre salary. Now i have separate ins n inv policies n amplely covered.

So wondering what i shud do without revealing too much details about the funds etc. So just base on simple put in money and get back returns, isit worth keeping.

Avoid mixing protection with investments and savings

Since you have a meagre salary, you should get a term insurance instead

I would advise to cancel your ILP policy

 

[Shion]

Cannot see like this.

He only invest $100 a month.

Imagine if he put into stocks, the commission would have taken up 20+% of his capital.

Sent from . using GAGT

Not necessary to buy stocks via brokers

You can buy through:
OCBC BCIP
POSB RSP

$100 per month brings you nowhere for ILP anyway. Your future insurance charges will cost more than that as you age.

 

[anfielder]

Do note that if you pick option 1, you're letting AXA continue to charge you admin fees & fund management fees, and given the current value of your units, that works out to at least $200-300 per year.

It's better to cash out and put into low cost instruments.

 

[peterchan75]

Hi everyone. Need some advise on my ILP. I will keep it simple. Consistent monthly payments of $100 and some initial top-ups. I have other insurances too.

AXA Inspire Flexi 2
Started 2007-now (11 years)
Total premiums paid: $16k
Current Value: $14k
Sum Assured: $50k

1. Should I stop paying n let the Sum Assured continue to be paid by Current Value?
2. Should I stop paying and cash out?
3. Should I just continue? Projected break even Year 25.

Gut feel is to take Opt 1. Thanks in advance.

I opted for option 2. Before that I get a new policy to replace the ILP. Once the replacement policy was approved, I acted on option 2. The longer you wait, the costlier will be your new policy.

 

[killerer]

Thank you for all your advises. I really appreciate the info and advises.
So I will just cut the losses, cash out and pump the funds into another investment-only portfolio.

• Alot of talk are about POSB Regular Savings Plan but im investment dumb. How about PRUWealth or Manulife? or one of those guaranteed retirement plans? I've lost confidence in insurance companies though when it comes to investment portfolio.
• How about SG Savings Bonds?
• SRS?

I'll be reading up on alot of the forum here about from here on out.

@anfielder
It didnt occur to me that AXA will continue to charge you admin fees & fund management fees if I maintain just for the term policy. Thanks for the advise.

@mrclubbie
"Future insurance charges will cost more than that as you age."
"I would advise to cancel your ILP policy"
Thanks for the advises.

@peterchan75
"I opted for option 2." I will follow same path as you. Thanks!

@JuniorLion
"You're better off surrendering and putting in $100/month into POSB Regular Savings Plan (Savers Invest) into Nikko AM STI ETF. "
I'll totally look into this option.

@Maeda_Toshiie
"He pays only $1 of commission if he DCAs via POSB RSP."
Thanks for highlighting this. I'll check this out

@oceanicmanta
"If I were you, I would get a simple Term Plan & cancel this ILP."
I will be proceeding with the cancellation.

 

[peterchan75]

Don't rush into cancelling your ILP. Get a replacement policy with almost the similar coverage first. Touch wood.... hope that your new policy gets approved swiftly. Once, the new policy is approved.... then proceed to cash out the ILP. Investing the cash from ILP without any insurance coverage is unwise.

 

[My Office Home]

i cut off my ILP. lost about 5k then.

 

[killerer]

Don't rush into cancelling your ILP. Get a replacement policy with almost the similar coverage first. Touch wood.... hope that your new policy gets approved swiftly. Once, the new policy is approved.... then proceed to cash out the ILP. Investing the cash from ILP without any insurance coverage is unwise.

If I cut ILP ($50k cover) Im covered for $500k still. Is that ok? Or shud get a replacement?

 

[killerer]

i cut off my ILP. lost about 5k then.

Sorry to hear that. So better siam now lose 2k onie

 

[mSnooze]

If you choose to surrender it, you can take it as you paid 2k for 11 years of coverage.

The monies you can buy posb rsp, ETF, SSB, stocks, or capital guaranteed endowments; see your risk tolerance.

 

[oceanicmanta]

If I cut ILP ($50k cover) Im covered for $500k still. Is that ok? Or shud get a replacement?

what does your 500k cover & until what age? - accident ? death & TPD ? Critical illness ?

vs what does the 50k cover & until what age ?

if both cover same events & duration, then it would seem fine to not find a replacement.

if u need replacement, stick with a term plan.

 

[akwl88]

ilp are rubbish, period.