Beware about the distribution charges, when you buy a regular premuim investment linked product (ILP).
Some products take away nearly 2 years of your savings. If you annual savings is $3,000, you stand to lose up to $6,000. This is used to pay commission to the insurance agent.
If you buy the ILP from NTUC Income, 100% of your savings is invested from the first month.
What is the catch?
If you terminate your policy within 20 years, you are required to pay $40 a year for the remaining period. If you terminate on the 10th year, you have to pay a back end charge of $40 X 10 = $400. That is all.
This is, of course, much lower than $6,000.
The name of the ILP from NTUC Income is called Ideal plan (code: ID5). And here is another tip: you can save as much as you wish, say $500 a month, and you still pay the same back end charge. ID5 makes a lot of sense, if you save a large monthly sum.
Subscribe to:
Post Comments (Atom)
:.
0 comments:
Post a Comment