Invest in single premium ILP

COMMENTS POSTED IN MY BLOG

COMMENT 1:

(Edited) Whole life plans, with or without limited premium paying term, is a gimmick to hoodwink consumers into paying more without much added value. They are sold at the expense of coverage.

Recent survey shows that Singaporeans are grossly under insured. Why? The insurance companies and their agents have been around for so many years and what have they done for the consuming public?

The answer is that insurance agents had never put their clients' interest first. They put thier pocket first. Term insurance don't pay much, wholelife with cash value pays more commission.

No wonder AXA, the world's largest insurer is committed to selling only term plans and ILPs. They strong believe the concept of buy term and invest the rest.

COMMENT 2:

I understand that the ILPs sold by AXA have high charges as well. They charges are as bad as the traditional policies. You can read www.askdrmoney.com to find out their charges. Do not buy the ILP from AXA.

COMMENT 3:

Unless advisers are paid a fee for giving advice, they will always be tempted to sell plans that benefit their pockets more.

Unfortunately, there are still not many people who like the idea of paying advisers a fee. They cannot see the benefits that an a professional adviser can give them.

Some DIY their investments plan but many lacks discipline to carry out for long term and lacks the knowledge to review and rebalance along the way.

Maybe someday, CPF board may allow members to use their CPF monies to pay such advisory fee.

COMMENT 4:

(Edited) Single premium ILPs had 5% sales charge which was higher than Income. Now every SP has 3% and that levels the playing field.

Doctor Money's comparison is for regular ILPs.....

Naturally like traditional plans they carry high charges. You pay for flexibility. You can change them to whatever you want at different stage of your life cycle.

MY ADVICE:

Invest in a single premium ILP to reduce the upfront charge. Some insurance companies offer you a plan that allows recurring single premium to be invested. This is the most cost effective plan.

Read this FAQ.