Asked by Anonymous
People who buy ILP is either they don't know about the plans or they know what the plans can give to them.
Why people still buy ILP.
1) Flexibility (increase/decrease coverage wo medical underwriting at milestones, premium holiday, these can be very importance for self employed, free lancer)
2) This is not the only protection plans that they have, usually they will have a base plans, when their loans, responsibility does not require that much coverage, they have the option to decrease or surrender the plan.
1) They are not informed of the various cost by their agents (because they are looking at the "big" picture").
2) They looked at it like an insurance product (with the 4% and 8% returns and is convinced).
3) They did their own calculation and found that ILP is slightly better (very rare instances but there are situations it is), since they want to depend on others for investing.
4) Or they just sign and never read the terms and conditions fees etc.