facebookHow does the DBS Manulife Smartwealth policy work? What are the Pros and Cons to this ILP? - Seedly

Anonymous

05 Feb 2020

Insurance

How does the DBS Manulife Smartwealth policy work? What are the Pros and Cons to this ILP?

Hi friends, I need help. My parents are looking to apply for DBS Manulife Smartwealth and I am looking at the website but I don’t really understand how it works. Is there anyone here who is able to explain it in an easier manner, or is currently in the plan?

Thank you in advance, I am a student who doesn’t really have much financial literacy 😅

Discussion (3)

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Vincent Tan Wen Bin

05 Feb 2020

Assistant Vice President at Thinkers Alliance

The objective of the policy is to invest client's fund and give them a minimal protection of 101% of capital in situation of claims (death etc) .

The funds in the policy include asset classes in equities and bonds. It depends on what are your parents' objectives are. Are they looking for dividends or capital appreciation? Or are they even open to investing in the first place?

So a few key pointers would be

  • This is an investment policy

  • Are your parents comfortable with investments

  • early termination will lead to heavy penalty. Are they comfortable with the budget and also the tenor of the instrument.

Elijah Lee

05 Feb 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

I second Hariz and strongly recommend you not to have your parents get an insurance product from the bank. I can't stress this enough, which is why I'm chipping in to second Hariz and make my stand clear.

Whether or not MSW suits your parent's needs is something that has to be carefully evaluated. I won't go into the features of the product since Hariz has already highlighted the important ones, but please understand that the complete financial situation of your parents needs to be understood before we can even say that MSW is a suitable product/instrument for them. For that, it is almost always better to work with a proper advisor first. If they didn't even have a hospitalization plan for example, then that's where they should put their money first, and not in an investment linked product.

Hariz Arthur Maloy

04 Feb 2020

Independent Financial Advisor at Promiseland Independent

First recommendation, don't buy insurance products from the bank.

Secondly, this is similar to Manu...

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