Hi Cherie,
1% fees for 30 years is just the ongoing initial account charge. For policy terms less than 30 years, the charges go up to 1.8% p.a.
There's another 1.2% p.a. policy charge payable from the 25th policy month onwards.
There's a 5% top up premium charge (min. SG$3k top up) - so if i top up $3,000, i lose $150 immediately.
On top of the above, there are the fund level fees depending on which funds you choose - which may range anything from 0.5-2% p.a.
Perhaps the only reason one might be drawn to this product is the ability to access funds not typically available to a retail investor. The 105% of policy value insurance coverage is quite pointless if you are looking to insure yourself.
If returns are beyond our control, the one thing that most investors can and must do is to keep their costs low. Every dollar you save in charges is a dollar earned on your investment!
If your objective was to invest in funds, there are tonnes of lookalikes on the market for direct investment. Don't need to lock yourself into a long term commitment with rather high charges with an ILP.
Hi Cherie,
1% fees for 30 years is just the ongoing initial account charge. For policy terms less than 30 years, the charges go up to 1.8% p.a.
There's another 1.2% p.a. policy charge payable from the 25th policy month onwards.
There's a 5% top up premium charge (min. SG$3k top up) - so if i top up $3,000, i lose $150 immediately.
On top of the above, there are the fund level fees depending on which funds you choose - which may range anything from 0.5-2% p.a.
Perhaps the only reason one might be drawn to this product is the ability to access funds not typically available to a retail investor. The 105% of policy value insurance coverage is quite pointless if you are looking to insure yourself.
If returns are beyond our control, the one thing that most investors can and must do is to keep their costs low. Every dollar you save in charges is a dollar earned on your investment!
If your objective was to invest in funds, there are tonnes of lookalikes on the market for direct investment. Don't need to lock yourself into a long term commitment with rather high charges with an ILP.