To me, investment linked policies (ILP) are better known as bankrupt policies. They are legal scam. Agents who sold these are called conman. I was nearly bankrupt by purchasing 3 such policies. Went into depression. Now I survive to share the evil of ILP
I bought ILP and now regret buy ILP. Agent painted long term capital growth with Bonus incentive upfront but it is not true that you can make good return long term. Once bought you I really regreted ILP because you see every month comission is deducted as sales comission to agent and your capital invested dropped. Get stucked now and cannot surrender otherwise it a huge loss from capital invested.
My ILP matured recently, after 15 years of paying for it. Bought it when I started working. The amount received was peanuts, might as well put in the bank. If only I learn to invest before, it would certainly be at least double.. But those days don't have much broker to invest unlike now.
Correct. I also can scam to invest in 3 ILP. My 2 policies Prudential ILP maturing in 2025. The other AIA IPL was terminated by me early in 2024. All these ILPs really suck. How nice if there were more education on these scammers in the early years. Full of regrets.
There was a time Fundsmith indeed did very well which is why agents could say “15% returns”. In recent years it has been underperforming such that the S&P 500 index has outperformed the fund in the past 5 to 10 year period. And we haven’t even included ILP fees yet while S&P 500 can be invested in with very very low fees. So when you buy an ILP for such funds, you are paying ILP fees to take a bet that the fund manager can outperform market indices. Can they do it for a while? Maybe. Can it constantly outperform? There is no guarantee. Only the ILP’s fees are a sure thing.
Every ILP agent using fundsmith AI fund to sell their scam ILP now... Thank you Seth for your wonderful service in sharing your knowledge.... You are a gem... Thanks again
I strongly believe that coverage and investment should be kept separate. We buy the insurance to have security yet tie to investment link defeat the purpose of having insurance as security
After I watch your video, I asked my Aia agent to meet up as I plan to terminate 2 ILPs (Prime life & achiever protector) which I have bought 24yrs and 14yrs. Both policies have earn breakeven and eat. profits. Her first replied was then you are no longer cover by critical illness. Anyway she delay to meet me up because she need to go 1 week detox trip.
If you only have your ILPs for CI coverage it might not be the best to terminate the coverage. Can talk with your agent to see if it is possible to just maintain the coverage while reducing the investment obligation. Alternatively if your health permits can consider getting term coverage for CI.
My agent mislead me about the ilp, asked her about the fees 2 times and she told me its very little. And she didnt tell me about that 14 day freelook and i missed that. Felt like ive been scammed. Now i want to cancel it and shes trying to drag it to my next giro deduction. Is there a way i can get back money?
You can lodge a complaint with the insurer’s customer service or even MAS that she did not inform you about the free-look period. Some insurers may let you free-look beyond the 14-day period
Such a timely video Seth! I just got a proposal for an ilp few weeks ago, wondering what's any other good ways to analyze it (watched your other video which did a good breakdown) or get a second objective opinion? It sounded so good when he pitched it but I want to err on the safe side to double check.
ILPs are mostly a gimmick to layer in fees. Of the good things your agent pitched to you, you can get them outside with a lot less fees. Will do a video on investment options that are better.
Thanks Seth! Yea, I was looking at the benefits illustration and rightfully so, the upfront distribution costs seem high though the bonuses seem to cover it for year 1. So the bonuses end up not really being bonuses. The thing that got me interested was that they were going to invest in funds that only AI investors can invest in (supposedly they will perform better with comparative non AI funds). Policy is called goaffluence from tokio marine.
is it right to assume, that one should always terminate their ILP at any point in time (assuming they woke up), regardless of whether just started, finished paying initial fee, or maturing? Because the fees paid are already unrecoverable sunk cost, and that there is no chance that the projected ILP benefit can beat market returns due to its recurring fees
In the event someone bought an insurance-focused ILP as their main form of coverage, and their health changes thereafter so they can’t be insured, they might be better off holding on to the ILP. Otherwise, one can calculate to see if A) they are better off keeping or B) they are better off terminating the policy and investing elsewhere. Owing to the high fees of most ILPs, B) usually leads to better outcomes. But it depends on the specific type of ILP one is in, and also what kind of investment is done after terminating the ILP. If you jump ship to another high-cost investment it is going to be the same or even worse.
📱 More content and great deals! sethisfy.com/telegram 📈 Free Shares: sethisfy.com/trading-apps/ 💳 Credit card deals: sethisfy.com/cards 🔥 Hot deals: sethisfy.com/deals
ILP is literally the worst investment product ever created. You get rekt in your retirement years. Fundamentally, keep insurance and investment apart. Do not mix them, and you'll be fine in later years.
@@LeakyBucketsg In my very humble opinion, it should be taken off the market entirely. Not only does it give you crappy coverage with overpriced premium, it also wrecks havoc on your financial standing in your golden years due to increasing mortality charges. There's a reason why your ILP's premium remains the "same" till the end of its term (or your life), simply because they end up selling your units to cover the remaining cost. So out of pocket, you won't feel a difference. But you WILL feel the difference once it's time for you to cash out. ILP is simply there for people who wants coverage and do some form of investment, yet don't want to put in the effort to do so. So for such scenarios, ILP might be suitable for them (though I still don't agree for reasons mentioned above), but sometimes is really "bobian" because their policy is already in effect for many decades. For the older generations, it's understandable. But for the current and future generations (those in the early 20s or just started working), I strongly suggest they separate investment and insurance, given that investments are way more accessible than before. And if they have ILP signed recently, to quickly cancel it before they regret.
@@Wagmi0 dont everything wait for government la, watch out for your own ass, especially now with things like social media, info are spread quickly, so stay educated
Hi Seth, if i no longer want to continue with my ILP, do i just stop the payment and let it lapse automatically, or should it officially write in to the insurance about surrendering?
Bro what did you do? Cos i stop my payment and let it lapse automatically. And just block all my agents number everywhere. I just disappear to dust from them.
Bro what did you do? Cos i stop my payment and let it lapse automatically. And just block all my agents number everywhere. I just disappear to dust from them.
“Whole life policy” tends to refer to traditional type of life coverage that lasts the insured’s whole life. It is also called “participating policy” because the insurer will pool premiums in a Participating Fund to invest and give bonuses each year. Insured cannot choose the investments but they get some form of guaranteed values. ILPs let the insured choose funds that the insurer offers. No guaranteed values. Many ILPs are also technically “whole of life” policies that can last the insured’s life, but when we say “whole life policy” we refer to the traditional, participating type.
Hi Seth, I was wondering if you have someone to review the policy that I have. I do have 2 ilp and was thinking of switching out. Hope to hear from you. Your videos are awesome.
Hey Sethisfy, Thanks for your genuine content on this video. Understand it’s a year that you posted this video and explaining the downsides of ILP. I’ve currently pay a total of $20k in a year for my policy and knowing that the returns might be better off else where to safe guard my retirement plans in future…. I definitely made a mistake and not reviewing the necessary before committing to that broker who sold me the dreams…. Wondering if i could possibly reach out to you personally to review the necessary together. Be happy to share the details so you can furnish more content to educate the mass market not to fall into this sales tactics within the financial industry……….. Let me know how we can connect further.
You can send the policy document to contactsethisfy@gmail.com and I will take a look if I have time. Only share if you are okay with it possibly turned into content (video/article) so do blank out personal details.
Not just commission. Insurance is generally not a sexy product to sell. But when you throw in “bonus units” and “high returns” it gets much easier to sell. Especially to increase the premium amount per case
Hi Seth, i took up a 10 years ILP and I have paid my premiums for close to 4 years now with a total of $24k and able to get back 50% if I surrender now. I have another 6 years to go if I choose to carry on which is another $36k to pay. Do you think I should surrender?
I terminated mine after 2 years of full premium paid which total of $12k, didnt know about the fees that time and I was told that I can withdraw all my premium after 3 years, but recently just realized it was all crap, theres always something that FA didnt tell me clearly, well cut my losses and call cs was told that I can only get bk 1.6k surrender value, but I'd rather cut my loses now, didnt know much about ilp back then.
Compare between two projections. A: The projected maturity benefit of your ILP in 2028 B: The projected amount you will get if you terminate the ILP and invest the cash value plus the amount you put in each year. If B > A you would be better off with B. Of course, if the annual premium is hindering you from priorities like getting adequate insurance coverage or even causing cashflow issues then you have not much choice.
James, Seth’s advice is valid. To make a decision, you will need to do your calculations and compare both options. If you terminate, you will need to know where to park your surrender value to generate return (like what Seth mentioned to invest).
Compare between two projections. A: The projected maturity benefit of your ILP in 2028 B: The projected amount you will get if you terminate the ILP and invest the cash value plus the amount you put in each year. If B > A you would be better off with B.
But, shouldn’t we still need Insurances? Like we get lump sum cash payouts in case something unexpected happens so that we no need to touch our investment funds to pay for those unexpected emergencies without affecting our portfolio
Indeed that is important, and one can buy insurance for that. Separating your insurance and investment is a sounder approach given the poor value offered by bundled products like ILPs.
To me, investment linked policies (ILP) are better known as bankrupt policies. They are legal scam. Agents who sold these are called conman. I was nearly bankrupt by purchasing 3 such policies. Went into depression. Now I survive to share the evil of ILP
Agents earn their big commission from here. They won't care if you survive or not.
I bought ILP and now regret buy ILP. Agent painted long term capital growth with Bonus incentive upfront but it is not true that you can make good return long term. Once bought you I really regreted ILP because you see every month comission is deducted as sales comission to agent and your capital invested dropped. Get stucked now and cannot surrender otherwise it a huge loss from capital invested.
appreciate the honest sharing 👍🏻
Thanks for watching and leaving a nice comment!
My ILP matured recently, after 15 years of paying for it. Bought it when I started working. The amount received was peanuts, might as well put in the bank. If only I learn to invest before, it would certainly be at least double.. But those days don't have much broker to invest unlike now.
Correct. I also can scam to invest in 3 ILP. My 2 policies Prudential ILP maturing in 2025. The other AIA IPL was terminated by me early in 2024.
All these ILPs really suck. How nice if there were more education on these scammers in the early years. Full of regrets.
fundsmith seems to have a pretty good return at 15% from Tokio Marine ILP and I can't purchase it without an agent. any insights?
There was a time Fundsmith indeed did very well which is why agents could say “15% returns”. In recent years it has been underperforming such that the S&P 500 index has outperformed the fund in the past 5 to 10 year period. And we haven’t even included ILP fees yet while S&P 500 can be invested in with very very low fees.
So when you buy an ILP for such funds, you are paying ILP fees to take a bet that the fund manager can outperform market indices. Can they do it for a while? Maybe. Can it constantly outperform? There is no guarantee. Only the ILP’s fees are a sure thing.
Every ILP agent using fundsmith AI fund to sell their scam ILP now... Thank you Seth for your wonderful service in sharing your knowledge.... You are a gem... Thanks again
and the fund has been underperforming recently 🥶
@@Sethisfy ya true
Who are the ILP agent ?
I strongly believe that coverage and investment should be kept separate. We buy the insurance to have security yet tie to investment link defeat the purpose of having insurance as security
After I watch your video, I asked my Aia agent to meet up as I plan to terminate 2 ILPs (Prime life & achiever protector) which I have bought 24yrs and 14yrs. Both policies have earn breakeven and eat. profits. Her first replied was then you are no longer cover by critical illness. Anyway she delay to meet me up because she need to go 1 week detox trip.
If you only have your ILPs for CI coverage it might not be the best to terminate the coverage. Can talk with your agent to see if it is possible to just maintain the coverage while reducing the investment obligation.
Alternatively if your health permits can consider getting term coverage for CI.
Hi,@gimong5431. Both plans that you mentioned are possible to convert to new plan that potentially pay less or stop paying.
My agent mislead me about the ilp, asked her about the fees 2 times and she told me its very little. And she didnt tell me about that 14 day freelook and i missed that. Felt like ive been scammed. Now i want to cancel it and shes trying to drag it to my next giro deduction. Is there a way i can get back money?
You can lodge a complaint with the insurer’s customer service or even MAS that she did not inform you about the free-look period. Some insurers may let you free-look beyond the 14-day period
Such a timely video Seth! I just got a proposal for an ilp few weeks ago, wondering what's any other good ways to analyze it (watched your other video which did a good breakdown) or get a second objective opinion?
It sounded so good when he pitched it but I want to err on the safe side to double check.
ILPs are mostly a gimmick to layer in fees. Of the good things your agent pitched to you, you can get them outside with a lot less fees. Will do a video on investment options that are better.
Thanks Seth! Yea, I was looking at the benefits illustration and rightfully so, the upfront distribution costs seem high though the bonuses seem to cover it for year 1. So the bonuses end up not really being bonuses.
The thing that got me interested was that they were going to invest in funds that only AI investors can invest in (supposedly they will perform better with comparative non AI funds).
Policy is called goaffluence from tokio marine.
is it right to assume, that one should always terminate their ILP at any point in time (assuming they woke up), regardless of whether just started, finished paying initial fee, or maturing? Because the fees paid are already unrecoverable sunk cost, and that there is no chance that the projected ILP benefit can beat market returns due to its recurring fees
In the event someone bought an insurance-focused ILP as their main form of coverage, and their health changes thereafter so they can’t be insured, they might be better off holding on to the ILP.
Otherwise, one can calculate to see if A) they are better off keeping or B) they are better off terminating the policy and investing elsewhere.
Owing to the high fees of most ILPs, B) usually leads to better outcomes. But it depends on the specific type of ILP one is in, and also what kind of investment is done after terminating the ILP. If you jump ship to another high-cost investment it is going to be the same or even worse.
📱 More content and great deals! sethisfy.com/telegram
📈 Free Shares: sethisfy.com/trading-apps/
💳 Credit card deals: sethisfy.com/cards
🔥 Hot deals: sethisfy.com/deals
ILP is literally the worst investment product ever created. You get rekt in your retirement years.
Fundamentally, keep insurance and investment apart. Do not mix them, and you'll be fine in later years.
@@LeakyBucketsg In my very humble opinion, it should be taken off the market entirely. Not only does it give you crappy coverage with overpriced premium, it also wrecks havoc on your financial standing in your golden years due to increasing mortality charges.
There's a reason why your ILP's premium remains the "same" till the end of its term (or your life), simply because they end up selling your units to cover the remaining cost. So out of pocket, you won't feel a difference. But you WILL feel the difference once it's time for you to cash out.
ILP is simply there for people who wants coverage and do some form of investment, yet don't want to put in the effort to do so. So for such scenarios, ILP might be suitable for them (though I still don't agree for reasons mentioned above), but sometimes is really "bobian" because their policy is already in effect for many decades.
For the older generations, it's understandable. But for the current and future generations (those in the early 20s or just started working), I strongly suggest they separate investment and insurance, given that investments are way more accessible than before. And if they have ILP signed recently, to quickly cancel it before they regret.
@@LeakyBucketsg don’t know what mas doing, ilp is just like a scam
@@Wagmi0 dont everything wait for government la, watch out for your own ass, especially now with things like social media, info are spread quickly, so stay educated
@@Wagmi0 maybe in the future, it will be banned.
yup, cut all my 3 ilps a few years ago.... painful but looking back, it was one of the best decisions of my life, totally worth it!
When stuck in a hole it’s probably best to stop digging 🙃
Same here!
Me too, it was painful but I think it was the right decision.
Hi Seth, if i no longer want to continue with my ILP, do i just stop the payment and let it lapse automatically, or should it officially write in to the insurance about surrendering?
Hi Seth, I’m also looking for clarity on this, appreciate if you can share how we can stop falling into the trap further…
Bro what did you do? Cos i stop my payment and let it lapse automatically. And just block all my agents number everywhere. I just disappear to dust from them.
Bro what did you do? Cos i stop my payment and let it lapse automatically. And just block all my agents number everywhere. I just disappear to dust from them.
Is there a difference between ILP and whole life policy? Or are they the same thing?
“Whole life policy” tends to refer to traditional type of life coverage that lasts the insured’s whole life. It is also called “participating policy” because the insurer will pool premiums in a Participating Fund to invest and give bonuses each year. Insured cannot choose the investments but they get some form of guaranteed values.
ILPs let the insured choose funds that the insurer offers. No guaranteed values. Many ILPs are also technically “whole of life” policies that can last the insured’s life, but when we say “whole life policy” we refer to the traditional, participating type.
Hi Seth, I was wondering if you have someone to review the policy that I have. I do have 2 ilp and was thinking of switching out. Hope to hear from you. Your videos are awesome.
MAS should just make IPLs illegal, period, they are the probably the largest largest legalized scam job to me in my opinion and also a victim.
Hey Sethisfy,
Thanks for your genuine content on this video. Understand it’s a year that you posted this video and explaining the downsides of ILP. I’ve currently pay a total of $20k in a year for my policy and knowing that the returns might be better off else where to safe guard my retirement plans in future…. I definitely made a mistake and not reviewing the necessary before committing to that broker who sold me the dreams…. Wondering if i could possibly reach out to you personally to review the necessary together. Be happy to share the details so you can furnish more content to educate the mass market not to fall into this sales tactics within the financial industry………..
Let me know how we can connect further.
You can send the policy document to contactsethisfy@gmail.com and I will take a look if I have time. Only share if you are okay with it possibly turned into content (video/article) so do blank out personal details.
Hi. What if my 15 yrs policy is going to mature in early 2025. Should I terminate now?
No wonder agents always promote ILP , it is due to their high commission
Not just commission. Insurance is generally not a sexy product to sell. But when you throw in “bonus units” and “high returns” it gets much easier to sell. Especially to increase the premium amount per case
any different from Malaysia insurer ILP? can make a video for malaysia insurer ILP PRO N cons?
I’m new to ILP. Few thousand a month is quite huge.
Hi Seth, I was wondering if an Endowment/Life insurance plan, e.g. PruWealth is similarly detrimental like an ILP? Thank you for your time!
Long-term insurance policies with cash values are generally a bad idea.
See this: ruclips.net/video/q3tJzevmu3Q/видео.html
Hi Seth, i took up a 10 years ILP and I have paid my premiums for close to 4 years now with a total of $24k and able to get back 50% if I surrender now.
I have another 6 years to go if I choose to carry on which is another $36k to pay. Do you think I should surrender?
I terminated mine after 2 years of full premium paid which total of $12k, didnt know about the fees that time and I was told that I can withdraw all my premium after 3 years, but recently just realized it was all crap, theres always something that FA didnt tell me clearly, well cut my losses and call cs was told that I can only get bk 1.6k surrender value, but I'd rather cut my loses now, didnt know much about ilp back then.
Giving that ILP can have multiples critical illness payout. Do you see this is a value add for getting ILP?
No you can get coverage from a term policy and it’s a good idea to separate your investments from your coverage
I bought my ILP in 2013. Maturing in 2028. How ah? Should I continue or surrender? Premium is quite a huge sum per annum 😭
Compare between two projections.
A: The projected maturity benefit of your ILP in 2028
B: The projected amount you will get if you terminate the ILP and invest the cash value plus the amount you put in each year.
If B > A you would be better off with B.
Of course, if the annual premium is hindering you from priorities like getting adequate insurance coverage or even causing cashflow issues then you have not much choice.
I still don’t understand, so means should james surrender or continue? Pls reply asap omg thank u
James, Seth’s advice is valid. To make a decision, you will need to do your calculations and compare both options. If you terminate, you will need to know where to park your surrender value to generate return (like what Seth mentioned to invest).
what if you already have a ILP for 20 yrs.. should exit or hold given all the cost are sunken
Compare between two projections.
A: The projected maturity benefit of your ILP in 2028
B: The projected amount you will get if you terminate the ILP and invest the cash value plus the amount you put in each year.
If B > A you would be better off with B.
Is something like pruvantage assure the same thing?
Yes that is an ILP
Cancelled after 5 months!!!
Why overlook all the critical illness and death reimbursement?
You can and should get a term for that instead
@@Sethisfy do you know aia premium for those plans? say 26 yo?
But, shouldn’t we still need Insurances? Like we get lump sum cash payouts in case something unexpected happens so that we no need to touch our investment funds to pay for those unexpected emergencies without affecting our portfolio
Indeed that is important, and one can buy insurance for that.
Separating your insurance and investment is a sounder approach given the poor value offered by bundled products like ILPs.