Whole Life Insurance
Term Life Insurance
Asked 4w ago
Currently the age of 23, trying to know more about this plan.
It's an ILP. If you are intending to invest, I'd suggest that you go with a normal investment platform such as POEMS. Don't be constrained to the limitations of the policy (and there are quite a number, such as sales charges, lock in period, etc). Invest on your own terms.
About the only benefit I can think of is, if the policy owner passes away in a crisis, the death benefit will be 105% (something like that) of the premiums paid, even if the market has crashed by half and the portfolio is deeply in the red. However, that is hardly a reason to do an ILP. You would be better off with a term plan to cover that instead.
What else do you want to know about the plan?
AIA Pro Achiever is an Investment-Linked Product (ILP) focusing on investing in a variety ILP funds. It has a key selling point of investing 100% of your premiums while giving you a bonus 5% in your investments after 12 years. Also, it allows for free fund-switching anytime to capitalize on market opportunities.
Like most ILPs, it has a minimal death benefit but that won't be the main selling point of the product. If you're looking at protection needs (while considering investing too), you might want to consider a term plan since it's relatively affordable for a period, allowing you to invest your savings to grow your wealth.
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Hi, to add on from what the others have shared, as the minimum premium to start for AIA Pro Achiever is S$200 / Month, my personal opinion is to set aside money for insurance coverage first, and if you have at least S$200 / Month of comfortable budget left, you may consider to get the AIA Pro Achiever.
I have the AIA Achiever which I bought 12 years ago. It is also an ILP.
If you can hold this long to see some small gains and protect your capital, you may want to consider but really, there are better stuff out there (you can buy the same funds or better funds yourself doing RSP on FSMOne).
My personal experience is not good, so I'd advise against taking it up. It only broke even a few months ago (Now it's down due to market). My original advisor is no longer with AIA, who told me then that it will breakeven in 8 years. Man, I was super naive.
Today, I realise 12-years opportunity cost I lost, if I have put this money in a stocks portfolio. I plan to terminate it this year.
Well, that's me. You need to do your own due dilligence to see if it fits your risk appetite as well as the financial knowledge you have.
AIA Pro Achiever is an investment-linked policy with basic life cover. Basically, 100% of your premium is invested into the selected investment-linked funds right from the first year. From the end of the 12th year onwards, 105% of your premium will be invested into the investment-linked funds.
For the investment-linked funds, you can tap on the expertise from global investment firm Mercer to take on the customised portfolio that they have created. Otherwise, you may wish to discuss with your agent on the best asset allocation.
By the way, this is the latest fund performance from AIA Singapore.
Note: This post is is updated on a regular basis to reflect the current market situation.
As for suitability, I will suggest for you to speak with your agent or feel free to reach out if you have specific questions. Professionally, I have been helping my clients optimise their wealth for the past 9 years.
I share quality content on estate planning and financial planning here.
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