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Anonymous
A friend told me that in the event of economic crisis, you would want liquidity hence investment is much better. Whereas insurance savings plans will require me to continue premium payment in that type of scenarios, eventually being a financial burden.
I don't think that is the case, do advise.
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Asheesh Chanda
30 Oct 2019
Founder at Kristal.AI
I am a big believer to keep insurance and investments in separate buckets and not mix them. Whether you use kristal.AI's free uto 50K USD ETF baskets or choose your own from any Robo, I would advise keeping insurance premium different from investment goals and baskets. The more you bundle things the more opaque the pricing and liquidity get. I have hundreds of clients who have told me horror stories of how mixing the 2 buckets not only led to sub-optimal returns but also they overpaid on insurance premiums. I agree with your friend, having liquid investments in low/medium risk baskets is safer; do get your risk profile done online for free when you get a chance at kristal.AI
Happy to help if you need more inputs.
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Elijah Lee
28 Oct 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi anon, my two cents:
It's not exactly advisable to view an investment as something you liquidate...
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Insurance Savings Plan is likely to have lower liquidity as it typically ties up your funds for 10-20 years. Otherwise, there will be a huge penalty on your capital.
If you are not prepared to put aside the funds for a long period of time, you should not be going into Insurance Savings Plan.
In addition, with Regular Savings Plan (ETF) offered by local banks and brokers and Robo Advisors, Insurance Savings Plan has become less appealing due to its high front load fees and lack of liquidity in nature.