Big loss on ILP

Dear Mr Tan,
Here is my two cents worth for investment linked products. My wife, being a naive person, bought an insurance/investment plan from a bank after she asked about how to earn a decent return on her hard earned money but was sweet-talked by a financial planner to sign up for the plan. Once the plan was signed, the financial planner did not call her for the next five years and she faithfully contributed $500 a month. 

After investing over $38,000 over 6 years, she was told that the current value was only $26,000, giving a loss of 31% (no counting inflation). After selling the policy, agents have a hands off approach. 


I do believe that most people are better off investing in an STI ETF or some blue chip share which gets dividends. I do hope that other investors do learn from our mistakes and not be CONNED into buying investment linked products from agents who think of nothing but earning a quick buck from naive people like my wife. My pain is your gain!

*Kindly take note that most insurance agents do not have a basic salary or a very low basic salary thus they would sell products which would give them the most commission as just to meet the client, they would have to pay for dinner, transport, parking etc thus selling low commission products such as term insurance would not make sense to them. PUT YOURSELF IN THEIR SHOES, WOULD YOU BE SELLING TERM INSURANCE TO EARN A MEASLY COMMISSION? (Food for thought)


My comment
It is best for consumers to avoid all financial advisers and insurance agents. They have to earn commission by selling this type of bad product to you.