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

[Buadongdong]

Make money doesn't necessarily mean good hor. 

 

Unless you tell me he demonstrates a damn good understanding of the underlying instruments that he has recommended you to buy and also an understanding of the fund manager.

He did explain a lot to me la.. just that I'm not familiar with these stuff and don't quite understand what he is trying to put across. Maybe I catch only about 60%?? but so far so good.. But my FA getting popular. Not much time to entertain me sometimes liao.. hahaha..

[No_worries]

I bought an ILp plan from Prudential in 2007, sold it off in 2015 and lost close to 7k premium. My monthly commitment was around 250 then. A friend told me about this ILP thingy and I decided yo cut it short after realizing what it really was. In short, I had been hard sold on it by the prudential agent after he said it is the best of both worlds.

[Kusje]

He did explain a lot to me la.. just that I'm not familiar with these stuff and don't quite understand what he is trying to put across. Maybe I catch only about 60%?? but so far so good.. But my FA getting popular. Not much time to entertain me sometimes liao.. hahaha..

 

I think you need to evaluate why you can buy something without understanding.

[Lala81]

I think you need to evaluate why you can buy something without understanding.

 

agreed. I have no financial background. But when i bought insurance for me and my wife just prior to marriage, i probably read all the clauses before i signed.

While i don't claim to have perfect understanding, i had a list of questions that i asked my insurance guy to answer 1 by 1. 

 

And my wife's ILP which i reviewed in 2015-2016, i also read everything which was a real bitch to understand given i had forgotten what i understood in 2011 and took me several hours of reading and googling before i explained it to my wife.

[Buadongdong]

I think you need to evaluate why you can buy something without understanding.

Yes Sir!!   I'll evaluate and understand every single clause before investing again in future. But now no spare cash already. Bank dry liao!!

[whitetigerzord]

Best of both worlds -- good for the company and good for the salesman. Win-win.

Some say it's best of both worlds with insurance and invetsment rolled in one policy but i say it's worst of both.

 

You buy insurance for security and peace of mind, why would you risk this with an investment conponent? My take is insurance and investemnt shld be 2 sperarte things altogtther.

Best of both worlds -- good for the company and good for the salesman. Win-win.

Some say it's best of both worlds with insurance and invetsment rolled in one policy but i say it's worst of both.

 

You buy insurance for security and peace of mind, why would you risk this with an investment conponent? My take is insurance and investemnt shld be 2 sperarte things altogtther.

[Wind30]

http://investmentmoats.com/budgeting/do-your-insurance-saving-plans-endowment-give-you-3-to-5-returns/

 

People, 

 

from the link above most policies does give 3+% returns which is ok for me.

 

I am wondering if that blog is true. Have anyone here redeemed a 10+year policy and calculated your returns.

 

Please remember your contribution is paid out over the years so you cannot use the final contribution as a lump sum to calculate your returns over the years as that will underestimate your yearly returns.

 

 

[Cauldron]

Yes Sir!! I'll evaluate and understand every single clause before investing again in future. But now no spare cash already. Bank dry liao!!

That's the reason yr FA not entertaining u anymore.

[pewtercatfella]

That's the reason yr FA not entertaining u anymore.

 

LOL agents never like folks who sniff around too deeply as far as the contracts are concerned.

[Windwaver]

Like some years ago i bought some gold bars behind my wife back and she was super pissed till she stopped talking to me for days.

My thoughts is savings in another unmovable asset, or run road

[Solar]

Aiya, of course she angry la. You bought so many gold bars without even giving her a tiny gold pendent, I also will be angry

Only some ounces..U sound like many kg

[Windwaver]

Only some ounces..U sound like many kg

[Eyke]

In that case I'll buy gold also, buy diamond for what? Diamond set for my wife still sitting on her dressing table never put on for 10 years, not kidding.

 

diamond is useful when u need to etch/scratch/cut glass 

[Beanoyip]

I bought ILP during the initial years also, lost money on it.. fark those scheming agents! 

[Sotong1977]

Actually I bought my saf insurance after coming out to work

But that time still healthy so ok

Good thing is saf insurance allows NSmen to buy

Saf insurance is really the best

Just like the good old saf black socks

10 years wonât spoil one

Usually hear people kpkb saf... refreshing to hear something positive. Anyway i've always have fond memories of my ns experience even if it was very tough at that time

[Mustank]

Usually hear people kpkb saf... refreshing to hear something positive. Anyway i've always have fond memories of my ns experience even if it was very tough at that time

This saf insurance is really cheap and good

So cheap because they don’t pay out commission

That’s why you don’t see anyone promoting it

Don’t think already lah

Own self go buy

Just own self google saf group term insurance

They will bring you to aviva I think

They are the actual insurance company

Because saf is not insurance company

[Sotong1977]

We are not really savers... just pay of housing loans....

 

She knows I am very against "insurance" plans because we had a big argument when she bought the 70k plans for the kids... so that is probably why she did not tell me because I will veto it.

 

now she went and bought a 450k plan....

A safe and guaranteed return investment method is pump the money into cpf special saving (4% return) and ordinary (3% return and can be use for children education). For those risk adversed and with zero knowledge on investment. Cant underatand why people are bashing CPF when investment plans such as life plan similarly locked our $ for many years usually right up till our retirement age.

[Sotong1977]

I bought an ILP plan from Prudential in 2007, sold it off in 2015 and lost close to 7k premium. My monthly commitment was around 250 then. A friend told me about this ILP thingy and I decided yo cut it short after realizing what it really was. In short, I had been hard sold on it by the prudential agent after he said it is the best of both worlds.

I think a lot of people who buy ILP were ignorant or conned by the agents into believe that ILP are like fire n forget missiles. Truth is the buyer need to constantly monitor the performance of the funds that are being invested and do a switch out ownself or through the agent. The agents are not going to monitor/look at all their clients' portfolio except when its time to sell the client even more products.

 

This was what i discovered with my ILP. Nowaday i prefer the CPF (safe and good returns in general) and Term deposit (super low return but ready cash and better than getting burn in the event of a market crash) approach as i am not investment savvy. Of course not expecting to be super rich and being easily contended with what i have helps.

Edited October 18, 2017 by Sotong1977