facebookAm thinking of purchasing AXA Single Premium ILP and understand that agents usually charge sales charge up to 5%, which I realised it can be negotiated. May I know what's an acceptable range to ask? - Seedly
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Anonymous

Asked on 28 Aug 2020

Am thinking of purchasing AXA Single Premium ILP and understand that agents usually charge sales charge up to 5%, which I realised it can be negotiated. May I know what's an acceptable range to ask?

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Hey here!

There are single premium ILPs that offer a lower sales charge (~1.5%). And I'm also guessing there are initial bonuses being given to you. Nothing wrong with opting for a single premium ILP, but do take note that 5% is quite a huge chunk. Do ensure you're aware of the portfolio, funds you're buying into.

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Question Poster

28 Aug 2020

For this ILP that you are mentioning about, is it for AIA ILP?

Oh Yi Ning

Oh Yi Ning

28 Aug 2020

Yes. Plain vanilla single premium investment plan, no extra bonuses etc. Just need to set up a good investment portfolio based on funds track records, tailored to your risk tolerance.

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Is this for cash, SRS, or CPF?

2-3% one time charge is fine if there's a portfolio and strategy in place.

1% if you're setting up an RSP.

The policy I believe you have in mind has no ongoing annual fees so in the long run, even at a 5% charge for every purchase, it'll cost less than an ongoing 0.5% charge after about 14-17 years after allowing for 6-8% yoy growth.

The graph below explains this. Blue line is 5% sales charge for every purchase, while orange is 0.5% annual fee with 0 sales charge with 8% p.a growth.

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Thank You!
Can you clarify
I wonder if
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What about

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