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Financial: The useless ILP, & how to go about terminating it


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I thought everybody knows the most bang for bucks is SAF term insurance coverage.

 

The information is all over the place and if you end up buy endowment, whole life or ILP or whatever then itz probably cos you did so to support the agent, too lazy to find out on your own or was missold.

 

ð

20 years ago

Don’t have so much information

When kids go ns, I will tell them to beware

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Just checked my GE ILP which I've paid for 21 years. Still have not break even. Paid 29K so far and surrender value is close to 27K. OKlah, at least it was a force saving. Else this saving also dunno went where.

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Supercharged

i just cancelled AIA after 18yrs, got miserable 1.28%/yr returns, but guess i can call myself "lucky"

Edited by Eyke
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I thought everybody knows the most bang for bucks is SAF term insurance coverage.

 

The information is all over the place and if you end up buy endowment, whole life or ILP or whatever then itz probably cos you did so to support the agent, too lazy to find out on your own or was missold.

 

ð

Yup term is best for coverage. Anything other plan is insurance agent and he company commission.
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Anybody bought those AIA Choice Life 10 or 15 policies???  Another rip off Policy and Company (I dare say!!)  Agent said that after like paying premiums for like 10 years no need to pay anymore and now like over 17 years now finally they say maybe next year no need to pay premiums no more!! Now this year only break even cost to cost

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Anybody bought those AIA Choice Life 10 or 15 policies??? Another rip off Policy and Company (I dare say!!) Agent said that after like paying premiums for like 10 years no need to pay anymore and now like over 17 years now finally they say maybe next year no need to pay premiums no more!! Now this year only break even cost to cost

This looks like a whole life policy that's paid up in 10 or 15 years. The premiums should be strictly limited to the number of years stated. How could it be still subjected to premiums?

 

I'm paying for a similar plan for 15 years, and the projected break even point is at 20 years. But I will continue to see the surrender value grow after the premiums stop.

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Turbocharged

ilp is maciam stock market, u need to time entry esp if its one lump sum.

 

for me the ilp works becos i put in monthly

 

my own eg: after 10 yrs of 100 / mth => i get 15k cash out, with 4k left inside the ilp which stills cover me for 50k death benefits

 

issue is when u buy a fund, its not performing, switch. ur FA will not offer it to you. insituition provide semi annual summary of how much u put in vs actual cash $$

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This looks like a whole life policy that's paid up in 10 or 15 years. The premiums should be strictly limited to the number of years stated. How could it be still subjected to premiums?

 

I'm paying for a similar plan for 15 years, and the projected break even point is at 20 years. But I will continue to see the surrender value grow after the premiums stop.

Whole life is fixed right. My wife also has a 20 year one. While I have a no end in sight one, pay until up lorry. That one I will surrender when my kids have finished their education.
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Turbocharged

The person that you are talking about a bit like me cos I also bought ILP from my cousin in 2008 or 2009. Even the monthly payment is about the same. I am a person who is lousy with numbers so when my cousin approached me then and I agreed to buy it. From many stories, I know ILP confirm lose money one but i am still holding now to it. Recently, then I know my cousin quit that company and maybe jumping ship to another company (please go and look for news that many agents jumping from 1 company to another company then you will know what company I am talking about), the thing I am angry is that she didn't even tell me that she quitted. Haiz.... 

ur commission to ur cousin over by many yrs liao maybe...

Just checked my GE ILP which I've paid for 21 years. Still have not break even. Paid 29K so far and surrender value is close to 27K. OKlah, at least it was a force saving. Else this saving also dunno went where.

21 yrs ago 100/mth jin big 

 

now 100 can only bring family of 4 makan mac n watch a movie during weekend..

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every time i go bank, the staff always try to talk me their 3rd party endowment plans or investment plans...really bth

 

 

 

 

 

 

 

 

 

 

 

 

 

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every time i go bank, the staff always try to talk me their 3rd party endowment plans or investment plans...really bth

 

Because you have too much money in your account.

 

Once you reach a certain sum, must learn from the elite @enye and keep everything under the pillow. After that, no more bank talk - only pillow talk  [lipsrsealed]

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Because you have too much money in your account.

 

Once you reach a certain sum, must learn from the elite @enye and keep everything under the pillow. After that, no more bank talk - only pillow talk  [lipsrsealed]

 

 

no la...very little only

they are trying so hard to get comm.

 

 

but totally agree with you.

keep under pillow is the best.  have nice $ bah wu, sleep very soundly  :D

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every time i go bank, the staff always try to talk me their 3rd party endowment plans or investment plans...really bth

 

"

haha, my dad "told off" one staff, He said not interested, but he or she kept badgering him, and said that the returns were "guaranteed". why not uncle, you invest?

which my dad replied, if so good why don't you also invest in it yourself? the staff then replied that he/she didn't have enough money.

 

dad then replied, ok why not i make you a deal. I come up with the capital, whatever we earn, we split the earnings equally, but if lose, you bear it 100%, since you said guaranteed, it is very safe for you with no risk. After that, not a single word anymore.

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The onli winners in ILP are the insurance agents w the high comm$.

 

Buy insurance for coverage. Investment is a different ballgame altogether.

 

As the famous saying goes: Buy Term and Invest the Rest.

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This looks like a whole life policy that's paid up in 10 or 15 years. The premiums should be strictly limited to the number of years stated. How could it be still subjected to premiums?

 

I'm paying for a similar plan for 15 years, and the projected break even point is at 20 years. But I will continue to see the surrender value grow after the premiums stop.

 

That is what the Agent "purportedly" told me based on my boys ages at that time ; Then again now they come back and say.... TCSS.... were projected figures and Company was not able to achieve that due to poor interest rate and profits ... all that kind of BS and crap. Look man I had to pay extra premiums going over extra 6-7 years depending on the currency; shorter for USDollars and even more longer for SGD... till now I'm still paying for the SGD one  

 

The article even came up in the local newspapers  

 

Here is a copy of it ... damn pissed off with AIA.... nowadays any AIA agent call me up   ..... I give them this peace or piece of my mind until they like dare not touch the phone for a while..... I ask them about this Policy and they like suddenly become very soft as I think they  "know" about this issue but just think the market or customers will forget about it over time  

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That is what the Agent "purportedly" told me based on my boys ages at that time ; Then again now they come back and say.... TCSS.... were projected figures and Company was not able to achieve that due to poor interest rate and profits ... all that kind of BS and crap. Look man I had to pay extra premiums going over extra 6-7 years depending on the currency; shorter for USDollars and even more longer for SGD... till now I'm still paying for the SGD one  

 

The article even came up in the local newspapers  

 

Here is a copy of it ... damn pissed off with AIA.... nowadays any AIA agent call me up   ..... I give them this peace or piece of my mind until they like dare not touch the phone for a while..... I ask them about this Policy and they like suddenly become very soft as I think they  "know" about this issue but just think the market or customers will forget about it over time  

 

What so special about this article? I think all insurance companies are like that, not just AIA.

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In the initial years, chunks from your premiums are taken to cover distribution costs, with the remaining funds (obviously no longer a 100%) being used to actually invest in unit trusts sans typical 5% sales charges. And then there are insurance charges incurred alongside policy fees which are deducted by selling away units on a monthly or annual basis. As one ages, insurance charges soar, not in a linear fashion mind you, but in an exponential one, which means the scenario where the units held in your policy end up being completely sold away just to account for these costs can arise, and you may even have to fork out extra monies to top up for the outstanding shortfall. In a nutshell, you could become a very unhappy holder of a policy with zero cash value, and still have to burn cash for continued insurance coverage in your twilight years.

 

More at Financial: The useless ILP, and how to go about terminating it

 

 

AIA huh? :ouch-it-hurts: , so many MDRTs [lipsrsealed] .

The old time agents will then tell you to hold on cos the allocation would have increased by a few % after many years. What they don't tell you is raising mortality charges will continue to erode any extra % allocated to the ILP.

 

In the end, ILP is just a very bad product for protection, both from an insurance standpoint and investment.

 

However, commission is still one of the highest for selling an ILP, so who cares?

 

Oh, did I say I fired my multiple MDRT agent of 15 years? [rifle]

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