Asked by Anonymous
Asked 2w ago
Again, I saw ppl stressing NOT TO Buy ILP and the hyped about FA asking u to buy ILP so I decided to ask for advice. I have a Manulink investor OA and Manulink Enrich Option B, with $60k of my CPF used to invest and I would like to know if should I cancel it? I was promised that the CPF monies would be returned to my CPF should I decide to terminate it. Is it true? Coz I am BTO ING soon and do not know whether do I need to include the CPF invested money in for Housing loan estimation
Top Contributor (Aug)
This is the problem when people repeat blindly without knowing what they're talking about.
You bought a CPFIS ILP. It has no insurance charges.
When you bought it 2 years ago, you were charged a 3% sales charge and a 1% advisory fee per year.
Now this advisory fee has dropped to 0.7%. Next year 0.4%.
What's more important than the ILP, is the choice of funds you've invested in.
How about you just check how much that 60k is worth right now?
Also, are you planning to use that 60k to pay for the house? If yes, you're gonna need to sell anyway.
If no, do you still want to invest your CPF monies? If yes, and the performance and allocation of the funds are sound, you can keep it.
If you want to invest, but want to choose different funds, just do a fund switch, it's free.
If you don't want to invest and just get a guaranteed 2.5% interest, you can choose to surrender the policy.
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Of course, insurance agents will say ILPs are good because they are expensive and contribute a lot to their commissions lol
they are rubbish products, pls avoid
best not to use ur CPF to invest and let it compound
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It will depend on when you bought the ILP. If it is within the first 14 days free-look grace period, the premium would be returned to your CPF untouched. However, if you choose to cancel it outside of the free-look period, ILPs typically have a very poor surrender value and you will get a significantly lesser amount than that you put it. I would suggest that you contact the FA who sold you the product- he/she would be able to advise you on the surrender value of said Manulife ILPs.