Investment Linked Policies (ILP) - Seedly
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Investment Linked Policies (ILP)

A mix of investment and insurance coverage

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Insurance

Investment Linked Policies (ILP)

What should I do about my Prudential ILP?
Hi Jun Jie, This ILP does provide you with coverage, so I would recommend that you look for alternatives first if it is your intention to drop it. Anything can happen any time, and you are still being protected by your policy at the moment. Thus, don't surrender yet while you are covered. Depending on what you want to cover (CI? Early CI? Death/TPD?), you will need to evaluate alternate options available to you. You might need a term plan, or a limited pay whole life, etc, depending on your needs. Once your alternative is in place, then you may decide what to do with the ILP.
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Investments

Investment Linked Policies (ILP)

Insurance

I am stuck with AIA ILP. Should I cancel it?
Hey there! We will have to look into your needs in order to determine whether it's worth cancelling the plans. Cancelling your plans early may mean forfeiting your premiums or getting back a fraction of what you've paid for based on the Product Summary. With regards to your current plans, I will suggest you perform a fund switch instead with the current policies that you have instead of getting another ILP plan. The fund switches will be useful and it's free as well (especially if it's AIA Pro Lifetime Protector or AIA Pro Achiever) The AIA Global Technology Fund has consistently outperformed benchmark over the long term, you can actually refer to the performance of the fund on the AIA website. But do also note that the Global Technology Fund is classifed as a higher-risk equities fund so depending on your risk appetite, that will affect the fund allocation. Also, you can view the performance of your investment via myAIA app to know how it's been performing over the past 3 years. Financial planning is an integral part of life. You can reach me here to find out more.
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Insurance

Term Life Insurance

Whole Life Insurance

Investment Linked Policies (ILP)

Should I buy term insurance, limited pay whole life or an investment-linked policy?
Hi anon, Since insurance is a long term commitment, you'll want to maximize your coverage in terms of what you pay and what you get. Here's my take: AIA Power Critical Cover is a multi pay plan. You will have to evaluate this against other comparable multi pay plans on the market, such as Aviva MyMultiPay. It won't be easy as the payout structures are generally all different. It depends on what you prefer. AIA Pro Lifetime Protector is an ILP. I don't recommend mixing investments with insurance, so I have nothing much to say here. AIA Guaranteed Protect Plus is a limited payment whole life plan. You will want to add riders to cover CI or ECI. However, I would suggest that you also benchmark it against other comparable and competitive plans such as Aviva's MyWholeLifePlan III or China Taiping i-Secure. Premiums to coverage wise, these two companies are generally quite good (this of course depends on your age, gender, etc). In general, you would use term insurance to cover death/TPD, which is via your traditional term plans, but multipay CI plans are also term plans. Limited payment life plans work best if you want whole of life CI/ECI cover without having to pay forever. You might want to evaluate options from multiple insurers first before deciding which plan and which insurer to gowith.
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Investments

Investment Linked Policies (ILP)

StashAway

Robo-Advisors

Online Brokerages

Regular Shares Savings Plans (RSS/RSP)

FSMOne Fundsupermart

What are the Pure ILPs with best returns in the market? Do you think I should go for them? Are there other better alternatives? What are your thoughts on FSMOne RSS and StashAway DCA compared to ILPs?
YT
YT
Top Contributor

Top Contributor (Jun)

Level 9. God of Wisdom
Answered 4w ago
Firstly, you need to know what are ILPs. ILP stand for Investment-Linked Policy which provides both insurance and wealth accumulation components. Knowing this, it is not right to directly compare ILPs to Robos or RSPs which are solely meant for investments only. Next, do not mix insurance and investments together due to higher costs and lower return as compared to getting them separately. You should find an advisor you trust to get your insurance plans based on your needs. Lastly, I think you should definitely read up more about investing. You should know what are the various options available, how you can profit from the different instruments, and the risks involved. Before you start investing, do look at Seedly's checklist first: https://blog.seedly.sg/working-adults-begin-investing-saving/ Next, you can compare the strategies by the different blogs on how to invest your money: - Seedly: https://blog.seedly.sg/singaporean-guide-where-to-invest-10000-right-now/ - D&S: https://dollarsandsense.sg/new-to-investing-how-what-and-where-to-invest-10000-today/ - FH: https://financialhorse.com/where-to-invest-10000-2019/ - The New Savvy: https://thenewsavvy.com/life/success/best-way-to-invest-10000/ - The Fifth Person: https://fifthperson.com/invest-10000-covid-19-crash/
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Investment Linked Policies (ILP)

Insurance

Is AIA Smartgrowth II a good ILP?
Hey there! AIA Smartgrowth II can be seen as a savings plan. Generally, the difference between an ILP and a savings plan is that in an ILP, you are invested into ILP funds whereas for savings plan, they are typically invested into the participating fund. And of course, savings plan has a guaranteed portion while ILPs typically don't (again, all subject to product type and T&Cs) You might want to consult a trusted financial advisor so that more can be understood on your side regarding your risk appetite, time horizon, your objectives etc. Financial planning is an integral part of life. You can reach me here to find out more.
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Investments

Retirement

Investment Linked Policies (ILP)

Insurance

I am 59, planning to put in place a retirement plan. I have been proposed Manulife InvestReady - Wealth and need some feedback on this product on the pros and cons. Is it worth getting into it?
Ng Kwok Fei
Ng Kwok Fei
Level 2. Rookie
Answered 3w ago
Thanks and appreciated the feedbacks on InvestReady - Wealth Am currently looking at putting in 100-150K for my retirment plan. Targetting monthly payout for 20 years starting from age 65. Monthly payout $1200 achievable ? Any recommendations for considerations ?
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Insurance

Investments

Investment Linked Policies (ILP)

I’ve invested in a long term investment-insurance plan at $2.4k/year. Based on the performance chart, the 3 months, 6 months, 1 year, 5 years are all negative. Only the 10 years is positive at 4.5%. Is the investment doing well?
Sharon
Sharon
Level 6. Master
Answered 3w ago
1) Since there's fresh funds injected into the plan every year, you can compute the XIRR, to determine the annualised return. It is the rate at which your investments compound year after year. You can read up on how to calculate XIRR here: http://singularitytruth.blogspot.com/2019/02/why-i-use-xirr-and-how-i-calculate-it.html According to the Greatlink Global Real Estate Securities Fund factsheet, there are dividends paid out from 2006-2019. I'm assuming you've been investing it for a while. If you still have the statements on how much dividends you get, you can include these dividend amounts + yearly premium when computing the XIRR, so that you'll know the real annualised return on this. Usually for this type of fund to do well, you need to hold at least 10 years because the high costs eat away at the returns. In your case, according to Bloomberg, there's a front load fee of 5% (sales commission) and expense ratio 1.66%. In GE's AR 2019, Greatlink Global Real Estate Securities Fund indicates a 7.39% (2019 figure) for 10 years, or 4.11% since inception. If you take 7.39% minus expense ratio (and 4.11% gain minus expense ratio), your gain would be reduced to 5.73% (10 years) and 2.45% (since inception) respectively. If it's your 4.5%, your gain will be reduced to 2.84%. Based on my understanding (someone correct me if I'm wrong), the expense ratio is not the total expense ratio. But since that's the only figure I can find, we'll just take that. Because I had an AIA ILP, which invested in one of the funds called Emerging Market Balanced Fund (10 years - 3.12%, Since 2006 Inception - 2.65%). It's TER (Total Expense Ratio) mentioned in their memo in 2011 is 1.75%. However, AIA AR 2019 states expense ratio as 1.55% (2019 figure). And as per the insurer's note: "Expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received." So I'd think the actual expense ratio (which we should consider is TER) is actually much higher than the one stated in their AR or on Bloomberg. 2) You may also want to seek a client adviser to review this and other finances. MoneyOwl previously offered a free comprehensive financial planning service, but I think it's no longer free now. https://investmentmoats.com/wealth-building-2/review-comprehensive-financial-plan/ https://www.moneyowl.com.sg/comprehensive/ I'm not from MoneyOwl and I don't use their service. I just like their business model of "Non commission-based Advisers", which would be more objective and probably be more aligned with their clients' interests than conventional advisors from insurance companies. Hope the above gives more clarity. I'm also learning more about the various investment vehicles as I go along. If something's not right, please feel free to point out. Thanks!
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PolicyPal

Investment Linked Policies (ILP)

Insurance

Life Insurance

Term Life Insurance

Whole Life Insurance

Should I withdraw from my great eastern ILP and purchase a term/whole life insurance product instead?
PolicyPal
PolicyPal
Top Contributor

Top Contributor (Jun)

Level 6. Master
Updated 2w ago
Generally, it is dependent on the purpose behind why you purchase the policies. Investment-Linked Policy normally a life insurance plan that constitutes an investment component. Thus, if you are simply seeking coverage, it might be good to withdraw. However, if your policy has been providing a good return on investment, you might want to continue with it. If you are considering between Life and Term Policy, do check out this article. If you would like to find out more, do reach out to us and we will follow up with you.
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Insurance

Investments

AIA Life Protection

Investment Linked Policies (ILP)

Life Insurance

In January 2020, I was pressured into buying a AIA Pro Lifetime Protector - Max. This is my first investment linked insurance policy. My yearly premium is 4K. Should I withdraw?
The Professor
The Professor
Level 4. Prodigy
Answered 4w ago
ILPs are the worst, no matter what people tell you. I was in a similar situation, ended up surrendering the policy with a loss of a few K's and used the money to invest into the stock market instead. Best decision I've ever made. I'd say get out as soon as you can but ultimately the decision is yours. NEVER mix insurance and investment together. There's a reason why agents love to push ILPs, I don't think I need to tell you why. Have a look at all the threads on ILPs on the HWZ forums ;)
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Investments

Investment Linked Policies (ILP)

Insurance

I was introduced to a goclassic investment linked plan (TM) a few months back. Been researching but I did not see material related to it. Can anyone share your take on this?
Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jun)

Level 9. God of Wisdom
Answered 3w ago
These life insurance plans are not good investments. They are complex, deliberately hard to understand, expensive and thus underperforming compared to other modes of investing.
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