Is the FWD Invest First Plus ILP worth it?

I bought an ILP (FWD Invest First Plus) at 12k annual premium. It comes with a booster bonus of 28% for 5 years and an extra booster bonus of 61% for 1 year. I signed up for it too hastily without considering the fees. I did some calculation later on and realised that I will be paying as high as $3600 on the initial account charge and $4320 on the policy charge on the 30th year. This is a whopping 66% fees of the premiums I will be paying on the 30th year. Is this plan still worth it?

Edit: The fees structure/matrix is available on the FWD Invest First Plus brochure

Discussion (11)

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Lee Marvin

25 Nov 2023

You didn't include the loyalty bonus that you will be getting at 1.2% of NAV. By then, judging from the 5year historical AR, your NAV will have doubled, which I think it WILL over the course of 30years. That will be 8640 of "guranteed" returns.

After 30th year, I think one of the charges will drop. So you only pay either 1 or 1.2%, not 2.2%. In comparison with other ILP plans, their policy charges is based on NAV. That will be alot more that will eat away your earnings.

Not an insurance agent here. But yeah, market is volatile, 12k annually is alot. I wouldn't buy so much for an ILP. who knows theree will be better plans the future. I will take it as diversity my investment portofolio and invest a smaller and decent amount first.

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Ethan

01 Nov 2023

Has anyone been pitched to use the unlimited premium holiday feature? Select maximum premium term for maximum bonus but pay for only 5 years.

First year already more than breakeven regardless of how the market performs...

Seems like a sure win policy?

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Wei Xiang Tay

01 Aug 2023

Hi, what are your charges in terms of percentages like? I also bought this plan, and ran calculations based on 3% growth per annum, over 25 yrs with 41% bonus Y1 and 18% bonus Y2,3,4 and 5. I understand the charges are high, I calculated based on Y1 and 2 @ 1.2%, Y3 - Y15 @ 2.4%, Y16 - Y25 @ 1.2%. Unless I'm missing something here?

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Jinssz Ng

08 Jun 2023

I have also bought the FWD Invest First since 30 June 2021 with a monthly premium $625. It is earning approx $300 now. But I only realized the high fees. Would any of you recommend me to go on a holiday premium or cancel the policy? There is an option to take out approx $4k, should I do that and invest the money on robo-advisor? Or buy ETF by myself? Hope to get some advice.

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