Investment Linked Policies (ILP)
Asked on 11 Sep 2019
My policy is close to half a year and I paid annually upfront about 7.2k (600 per month). I did not read the T&C carefully then, and now I know abt all the fee, I have doubts abt the actual return I get. My term is 20 yrs. And additionally, can I change the payment term to be monthly? Will there be any extra admin fee or something if pay by monthly (let's say I stay with the policy for now). Thanks in advance.
The subject of surrendering is rather tricky to answer, however, I would urge you to ask yourself a few questions here first:
Why did you get the policy in the first place?
What do you want to achieve from the policy? Are you ok with the risks?
Are you able to sustain the premiums?
Do you understand the conditions of the policy, especially with regards to the fees and the charges?
Did you look at the Benefit Illustration and calculate the real return to you? (A published 4% return will work out to be lower, the only question being what is the return to you as the investor)
Are you going to be managing the funds and the rebalancing, or is the advisor going to do it for you?
Are there better options for your money given your risk profile and time horizon?
You can change the policy to monthly, but then it will only take effect from the next policy year.
Without the specifics of your policy, I am not able to give a full opinion, taking into account that fund selection will have an impact on the outcome. If you'd prefer a more in-depth discussion, do drop me an email at [email protected] and we can converse there.
This is a rubbish product which ought to be avoided
you can google seedly and the internet for reviews
suggest you do not mix insurance with investment, period.