Investment Linked Policies (ILP)
Asked on 27 Jul 2020
What should I take into account? How do I know if the coverage is cheap or not? If I terminate now, I will have realised a loss of 3k. Does ILP ever make money in long run especially since my cost of insurance will go up?
Currently you have 50k in coverage, which in today's standard is not alot. However, don't dismiss this policy all together because of the time which you bought the policy. Fortunately, you managed to stay invested through 2 major financial crisis in the past 12 years. You policy is actually close to breaking even, and you should actually continue to hold it for yourself as a form of alternative investment. Should you know how to manage your funds, you can still make a decent return for yourself.
I have clients with ILP that perform way above the benchmark, its dependent on whether the advisor is able to dispense timely information with regards to your investments. Should you not require the insurance part of the ILP, you can reduce the sum assured to 0 at 55, or if your policy is from Prudential, you can do so now, as the policy has been in force for 10 years.
Do provide more information, so that we might understand your situation better.
E.g. your premiums for your coverage, age taken up
28 Jul 2020
28 Jul 2020
Show More Products