facebookA FA approached me to invest in a 101 ILP called #goClassic by Tokyo Marine, and the sub-fund is FundSmith Equity Fund. It's 100% investment ILP with 101% death benefit, should I buy this ILP? - Seedly

Advertisement

Anonymous

15 Dec 2020

Insurance

A FA approached me to invest in a 101 ILP called #goClassic by Tokyo Marine, and the sub-fund is FundSmith Equity Fund. It's 100% investment ILP with 101% death benefit, should I buy this ILP?

What are your thoughts on goClassic by Tokyo Marine?

Discussion (7)

What are your thoughts?

Learn how to style your text

ILP = insurance + investment

  • Your FA get comission from u when u buy.
  • insurance premium take $$$ from your investment.
  • ILP underlaying is unit trust , management fee
  • may have other admin fees

  • If you investment growth cant keep up with the deduction, u lose $$$

  • if market down you lose $$$
  • as u get older your premium increases
  • Thus your portfolio need to be very high growth, meaning you cant diversify, inorder to have a chance make a profit.
  • Most insurance agent, or advisor, or i would call them sale rep. May not be savvy enough to help you earn 10-20% with unit trust. Thus high chance you will lose $$$. Knowing the theory & practice is different thing.

However, if you view it as an insurance, NOT an investment, then is ok. Because it has cash value, u can cash out , normally after 5yr, when u decide not to play this game anymore. But i am 99.9% sure there wont be profit.

OPINON:
No.

No don't do it, avoid ILPs at all cost. Super high fees and many layers of fees within. Everyone in the pipeline gets a cut from you, and you are the goat at the bottom getting slaughtered by fees. Fees are critical as it reduces your reduces significantly

I like Fundsmith Equity! But let's take a look at the fees for this policy slightly closely..
1. Ini...

Write your thoughts

Advertisement