How does the DBS Manulife Smartwealth policy work? What are the Pros and Cons to this ILP?

The objective of the policy is to invest client's fund and give them a minimal protection of 101% of capital in situation of claims (death etc) .

The funds in the policy include asset classes in equities and bonds. It depends on what are your parents' objectives are. Are they looking for dividends or capital appreciation? Or are they even open to investing in the first place?

So a few key pointers would be

• This is an investment policy

• Are your parents comfortable with investments

• early termination will lead to heavy penalty. Are they comfortable with the budget and also the tenor of the instrument.

Hi anon,

I second Hariz and strongly recommend you not to have your parents get an insurance product from the bank. I can't stress this enough, which is why I'm chipping in to second Hariz and make my stand clear.

Whether or not MSW suits your parent's needs is something that has to be carefully evaluated. I won't go into the features of the product since Hariz has already highlighted the important ones, but please understand that the complete financial situation of your parents needs to be understood before we can even say that MSW is a suitable product/instrument for them. For that, it is almost always better to work with a proper advisor first. If they didn't even have a hospitalization plan for example, then that's where they should put their money first, and not in an investment linked product.