Is there really a need to cancel Investment Linked Policy? Seems like many have been suggesting to cancel their ILP?

Dear Poster,

In most cases that I have seen, the biggest problem why ILPs become a burden to a financial portfolio, is due to improper management or lack of professional knowledge with regards to investment planning. There are costs associated with holding an ILP, but in an ideal situation where your investment portfolio is managed effectively, these costs become fractional in relation to the growth.

Another issue is that when ILP are coupled with insurance elements, there are costs associated to insure yourself, which will also affect the growth of the policy. The solution is similar to the above, often mismanagement is the cause of this issue.

I personally have seen ILPs that have performed well with proper fund management. In any case, if you have any doubts with your current financial plan, first step is to consult your primary financial planner. If the answer he/she gives is still unsatisfactory, you should start to look outwards for an more objective view. At the end of the day, there are pros and cons to every solution chosen, the key is to understanding why you took it up in the first place, and whether it is on track to fufil that objective.

Hope i was able to address your queries!

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 returns significantly