Investment Linked Policies (ILP)
Asked on 15 Aug 2019
I would not mix investments with insurance.
Investments should always give you flexibility to liquidate whenever, without any penalty whatsover (other than being able to accept the market price of your investments when you liquidate).
You would have more options in terms of asset classes, availability of funds, etc and greater control if you directly invest, whether on your own, or with the assistance of an independent advisor like myself. The options are very wide when it comes to the investment universe. Speak to someone to get an understanding of your risk appetite, motives, objectives, etc before you start investing. The worst thing you could do is rush into the flavour of the month without doing your research.
Part Investment Part Insurance is usually not a good idea.
What I do not really like about Great Wealth Advantage is the fees. 2.5% of account value over 10 years. Sounds pretty high to me. A GE agent also confirm that the fees is 'high' in the long run.
We will deduct a policy fee equivalent to 2.50% p.a. of the account value on a monthly basis from the start of the policy till the end of 10th policy year by cancelling units in the fund(s) you have invested in. We may change the policy fee by notifying you 1 month prior to changing the policy fee.