A FA approached me to invest in a 101 ILP called #goClassic by Tokyo Marine, and the sub-fund is FundSmith Equity Fund. It's 100% investment ILP with 101% death benefit, should I buy this ILP?

ILP = insurance + investment

• Your FA get comission from u when u buy.
• insurance premium take $$$ from your investment.
• ILP underlaying is unit trust , management fee

• may have other admin fees

• If you investment growth cant keep up with the deduction, u lose $$$

• if market down you lose $$$
• as u get older your premium increases
• Thus your portfolio need to be very high growth, meaning you cant diversify, inorder to have a chance make a profit.
• Most insurance agent, or advisor, or i would call them sale rep. May not be savvy enough to help you earn 10-20% with unit trust. Thus high chance you will lose $$$. Knowing the theory & practice is different thing.

However, if you view it as an insurance, NOT an investment, then is ok. Because it has cash value, u can cash out , normally after 5yr, when u decide not to play this game anymore. But i am 99.9% sure there wont be profit.

OPINON:
No.

No don't do it, 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 reduces significantly