High cost Investment Linked Policy

Dear Mr. Tan,

I already have an ILP for the last 3 years. However, an adviser friend told me to cancel it and use the money instead to buy term and to invest the rest in unit trusts that would yield more returns in the long term.

I have already paid $3600 to date and my current cash value is at $900 for the ILP. Do you think I should just cancel the ILP and heed her advice?

REPLY

You should compare the charges of the ILP and the unit trust going forward. You probably have incurred most of the upfront charges for the ILP, so the difference between the two options in the future is likely to be small.

You can read this FAQ to understand the charges:
http://www.tankinlian.com/faq/ilp.html