Asked by Anonymous

Why do people still buy Investment Linked Policies. Don't they see the mortality charges increase with age, high surrender cost, platform fee, and tons of other fee together mortality charges?

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    • Yong Zheng
      Yong Zheng
      6 Answers, 9 Upvotes
      Answered on 22 Nov 2018

      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.

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    • Loh Tat Tian
      Loh Tat Tian
      234 Answers, 337 Upvotes
      Answered on 22 Nov 2018

      Well,

      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.

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    Yixiong Chang
    Yixiong Chang
    205 Answers, 268 Upvotes
    22 Nov 2018

    Because they are sold to them by the sales agents.

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