What to do with ILP

[eat.buttercake]

Hello all,

I have an ILP that was bought by my parents in Oct 2011.
Read on the forum of how ILP should never be bought so I was looking at the policy.

Based on the latest letter the insurance agent sent me, the surrender value is only approximately $1.8k.

Paid $1.2k yearly and based on the policy, the ILP investment percentage break down is as follows:

1st year: 15%
2nd - 3rd year: 54%
4th - 6th year: 102%
7th year onwards: 105%

Not sure if my calculation is correct so based on the amount I paid for investment ($2654), i will only take back about 68% ($1803)?

With the ILP being 4years ++, what can I do with this?
Should I just cancel the policy now or continue paying (while contacting the agent to maybe adjust the policy to more investment and less insurance).

Thank you for all opinions!

 

[walkofwinners]

Ilp takes donkey years to even breakeven. Either u cut loss now or just continue paying till it breakevens before cancelling.

 

[Shion]

How did you get the amount 68% ? The surrender value depends on how well your investments are faring.

Better call up the insurance company and find out your actual surrender value.

 

[havetheveryfun]

1 year pay $1.2k

4 years how to be $2654 ?

but you definitely getting back less than <30% of what you paid or even nothing if its only your 4th year.. because for the 1st 3 years, a huge chunk of the payment is used to pay the agent's commissions

 

[eat.buttercake]

Oh I got the $2654 based on the investment percentage the ilp provides.
Not sure if that is the right calculation...

 

[SBC]

AIA again?

What is the fund name?

 

[Darkzi0n]

if u r financial savvy then jus cancel it.

 

[eat.buttercake]

Manulife's Manulink Flexi (I). Havent seen this policy being discussed on hwz though

 

[RetRace]

1.8k/4.8k. I bled from two ILPs for about 3 years too. Lost about 7k but no regrets cancelling them

Sent from Samsung SM-G900F using GAGT

 

[QNH1013]

1.8k/4.8k. I bled from two ILPs for about 3 years too. Lost about 7k but no regrets cancelling them

Sent from Samsung SM-G900F using GAGT

I faced a similar situation a few years back too. Bit the bullet, cancelled and lost about 4.5k, but no regrets.

 

[Shion]

If you visit the various insurance websites, a lot of these funds are underperforming

 

[Shion]

Manulife's Manulink Flexi (I). Havent seen this policy being discussed on hwz though

What are the funds invested in ?

 

[undiscern]

ILP is the worst product for consumer, best product for insurer.

 

[SBC]

Another point. Cannot pay using credit card.

 

[SBC]

Be decisive. Gotten my wife to cancel hers after about 15 years last year. Still made about 2k. Most importantly, need to monitor fund prices & sell at the right time.

 

[Shion]

ILP is the worst product for consumer, best product for insurer.

Indeed, with all the charges. But then I see more and more people trying to push for the selling of endowments and ILPs.

Be decisive. Gotten my wife to cancel hers after about 15 years last year. Still made about 2k. Most importantly, need to monitor fund prices & sell at the right time.

2k after 15 years

 

[Aceachiever]

Hello all,

I have an ILP that was bought by my parents in Oct 2011.
Read on the forum of how ILP should never be bought so I was looking at the policy.

Based on the latest letter the insurance agent sent me, the surrender value is only approximately $1.8k.

Paid $1.2k yearly and based on the policy, the ILP investment percentage break down is as follows:

1st year: 15%
2nd - 3rd year: 54%
4th - 6th year: 102%
7th year onwards: 105%

Not sure if my calculation is correct so based on the amount I paid for investment ($2654), i will only take back about 68% ($1803)?

With the ILP being 4years ++, what can I do with this?
Should I just cancel the policy now or continue paying (while contacting the agent to maybe adjust the policy to more investment and less insurance).

Thank you for all opinions!

U r now in the 4-6 years where your premium allocation is 102%, i.e. more than what u have put in.
The economy is bad now, most funds might also not perform well in the next few years.
In general, an ILP policy typically take around 10~15 years to breakeven and profit.

U need to know your priority for pursuing ILP, whether u want to continue for it high protection (sum assured) if something was to happen to u or terminate it to invest in other form of better and faster investment return with your $1200/year.

 

[akwl88]

cancel the plan, buy term and hoot the mkt now!

 

[Perisher]

U r now in the 4-6 years where your premium allocation is 102%, i.e. more than what u have put in.
The economy is bad now, most funds might also not perform well in the next few years.
In general, an ILP policy typically take around 10~15 years to breakeven and profit.

U need to know your priority for pursuing ILP, whether u want to continue for it high protection (sum assured) if something was to happen to u or terminate it to invest in other form of better and faster investment return with your $1200/year.

You need to know your priority for promoting ILP, whether you want others to continue for it's low protection(sum assured) if something was to happen(vs term) or terminate it to BTITR with $1.2k/year.

 

[eat.buttercake]

What are the funds invested in ?

Based on the statement:

1. Global Emerging Markets Fund
2. Global Regional China Fund
3. Golden Singapore Growth Fund
4. Golden SEA Special Situations Fund
5. Pacific Equity Fund

I have no idea how the statement is read as it sound conflicting. Cant post pictures but based in the statement, example of Global Emerging Markets Funds(GEMF):

Balance as at 1 Jul 15, I have 174.12 units of GEMF. Bid price of $1.66410/unit and total value is 289.75.

In between, 73.91 units of GEMF purchased/allocated/bought at $1.65612 = value of $122.40. They also sold/deducted/withdrew 10.61 units of GEMF at $1.56119/unit = value of $16.56.

Balance as at 31 Dec 15, I have 237.42 units of GEMF, bid price of $1.49740/unit and total value of $355.51.

Does that mean they bought the fund at an expensive price and let go at a cheaper price? Is there logic behind it or am I not reading it correctly?