You are correct, I did a excel file for my client, first 3 years less than half of his total premium paid invest into the fund. And after 20 plus year, the premium is not enough to pay the protection and have to sell your unit to pay. And the coverage is too much lower compare with term plan. Wholelife is good but if you want to grow your wealth faster, buy term and invest the rest, but no ILP.
So true, my parents have had such ILP for many donkey years, when I look at the return. It was so bad. Like you mentioned, return was reduced due to high fees and insurance agents didn't do their job to help reallocate funds, because they are not financially savvy. I once had a friend that came to me to sell me such a plan with returns more than 20% a year, if it is so good, many people or rich people will just park their money. Sometimes when these people sell these policies, they don't even know what is behind these funds.
HI Kelvin, it is a very interesting video and you shared out more cons than pros. However, base on your research like you said only for AIA products. Is this 6mo ago product had been improve? Your video is perm in YT but you did not update the latest product by AIA. It’s good to have different sounds but for me it is not really good of direct people to move away from ILP. If purchase with AIA, there is at least a fund manager to help for monitor and most importantly, death benefit is guaranteed. Just my own opinion. No offence.
I think the main issue is usually these ILP fund underperform, hence the compounding effect does not seem attractive. You need to buy a LOT to even have a proper insurance coverage.
ILP is a bad idea for consumer. So many things are not transparent and you will not be able to figure how they cost in all kinds of things on the investment side.....Then when you feel like giving up and terminate, you feel sayang for the small life coverage esp as you age...And that's when you know they have hooked you.
Do you consider FWD Invest First as a typical ILP too? I mean I know it is labelled as one but it feels different from most ILP explanations, but i got mixed reviews about it. Wondering if you have any knowledge on it 😅
FWD Invest First is not the typical ILP in the video.. its an ILP that does not provide those TPD, CI coverage thus works differently. They are also those type that invests 100% of your money into funds instead of those low amount like the typical ILPs. Nowadays there are a lot of ILPs that don't provide insurance coverage. There are a few more differences but its better to seek out a trusted advisor to explain it to you and see if its suitable to your needs
@@alexoh4748 thanks for that. Yea so that's the thing... Based on what my advisor has said, it gives access to special funds which otherwise wouldn't be normally accessible. But because its called ILP as well, i get confused and a little paranoid whenever videos like these pops up 😅
ILP principal is not guaranteed. If it is a plan that has coverage like CI, the sum assured remains what u sign up for irregardless of Fund performance (Sum assured will not change on claim unless u have some premium-paying issues)
Hi Kevin, i would like to ask for your opinion too. In this video, you solely mentioned ILP with health coverage. But there are ILP that is fully investment based. Do you mind sharing your thoughts of it? I believe you will see it differently from whole life ILP right? For example, traditional endowment plan vs investment based ILP?
it does not matter if it ILP with health coverage or ILP that are fully invested. The major issue is cost. ILP charges u layers and layers of fees that eats into investment return and make it such a terrible product.
@@seamuslam well, i guess for someone that is not investment savvy, can’t discipline themselves to invest/save monthly. Have a weak heart towards a bear market. The expense ratio paid should be worth it right? And yes, managing your own brokerage account might be easy to you. But definitely not for alot people
@@Ryan-ts6un In today's environment, there are tools easily available and accessible. If you can't discipline yourself, you can set up auto transfers to take your money out and autoinvest regularly similar to ILP. If you do not know what to buy, just buy a broad market etf like S&P500 or even global market ETFs. If you still feel like you need professional opinion/advice, you can seek out independent financial advisors to do a 1 time review of your finances and advice accordingly or just to help you setup your auto-investing pattern, instead of paying ILP agents/fund managers hefty premiums which eat into your profits even more and are biased towards their products. The only certainty in investing is fees, so you want to minimize that as much as possible. In the short run it may not look like a lot, but in the long run after you build up your portfolio, even a 0.1% fee difference make a big impact on your returns.
@@Ryan-ts6un investing can be simple, but we have always been told that it is something that is extremely risky and difficult to manage. And the ppl that make us think so often has an agenda e.g. they are after our fees and commissions. As for the risk tolerance, whether u r investing yourself or through an insurer, you are still facing the same risk. Buying fund A through ILP does not magically make it less risky than buying fund A yourself. And having a weak heart is often because the person do not have a clear picture of his/her financials and goals.
Signed up for my first and only ILP with NTUC Income in Oct 2014. Was mainly making a loss before COVID started. During COVID I was making a sharp profit. Today (Feb 2024) it says I made 29.23% profit ! I can take out today but I am not going to. I will take out once I am retired. I am lucky I chose the right fund wisely to invest. (Ask me how)
To find the best ILP fund to invest, I decided to first check when or what year the investment fund started. I chose one which started in the year of the PIg because it represents wealth. This was what I predicted back then. @@KelvinLearnsInvesting
Yea, if u can afford it, its better to sign up. Cos the earlier u sign up, the earlier u lock in the price. In singapore, there’s about 1 in 4 chance of getting cancer in our lifetime
lol AXA PULSER biggest scam ever. sign up bonus of 160% bonus sounds attractive. cons, lock in at 30years + as kelvin mention market returns over 10years can only at at 1% technically ur losing money. Not to mention the fees thats being added up ur losing alot over the years. termination fees will also eat back into ur intitial deposits as well. all in all. just run from ILP. the fund managers are mostly suckish and losing investors money. Dont listen to sales talk for agents. If you have real money find a 1-1 fund manager to grow your money for you, not a ILP. Safest you can even put your money in SSB, SGS or T-BILLS in guarantee return bonds from singapore goverment.
Kelvin, you are giving out misinformation like the naysayers and public. There are 3 types of ILP in total. Do you know there are 100% invested without insurance? Even the traditional ILP is beneficial for the younger person for an insured amount. You have no idea what you are talking about.
@@shutengloke5907 For sure, but for one like me, who can't even remember I have this ILP, don't expect me to have invested the money elsewhere more productive ... coz I'm one of those who don't pay attention to financial-related stuff. Thus, that old ILP was kind of an accident and bonus to me. 😅
Please listen to Kelvin, no one dare to tell you the truth. AIA tomorrow will bring down their data sheet ! For my experience, especially those young agent wearing mini skirt....be careful. Most of them sell you ILP. Kelvin should know...he must have some experience. hehe
Do u even know that there's ILP's that are just focused fully on investment? U dont right? There are such plans around. Your video is mainly covering on insurance cum investment policies on ILP. It's not saying ILP's is bad its just good to diversify what u have. People who think ILP's are bad is because due to the fees but in fact have u seen the benefits of it? It's all the naysayers that rumors things up.
@@KelvinLearnsInvesting there are bonuses and maintenance fees that can be refunded at the end of the policy. More over the charges can be used to substitute from different accounts. Anyway obviously u don’t have a IlP and u are a trader yourself so this is definitely not something that u will have due to its ‘high costs’. The target audience is already wrong in the first place.
@@kumsoonwong143 that video got him shoot down at his foot badly.. just look at the comments from that video. He became a hated subject immediately after that video and he apologies and mentioned he won’t do such a content any longer
@@ee-sj8qr you are right it really depends on the target market and not everyone is savvy. Every product or investment has their merits and disadvantage and suitability to different segment
"I grew my fortune buying insurance," said no one ever.
Insurance is borderline scam
A small suggestion from someone who used work in insurance domain:. Never mix insurance with investment.
You are correct, I did a excel file for my client, first 3 years less than half of his total premium paid invest into the fund. And after 20 plus year, the premium is not enough to pay the protection and have to sell your unit to pay. And the coverage is too much lower compare with term plan. Wholelife is good but if you want to grow your wealth faster, buy term and invest the rest, but no ILP.
So true, my parents have had such ILP for many donkey years, when I look at the return. It was so bad. Like you mentioned, return was reduced due to high fees and insurance agents didn't do their job to help reallocate funds, because they are not financially savvy. I once had a friend that came to me to sell me such a plan with returns more than 20% a year, if it is so good, many people or rich people will just park their money. Sometimes when these people sell these policies, they don't even know what is behind these funds.
More than 20% per year? Which plan which fund?
This is really a clear explanation. Really have no idea of my ILP. 10 years already and its losing money now. Sigh..
I hope this video gets more ‘Likes’. It needs to reach many many more people out there
Very clear messages. Thank you
Maybe yall should consider a pure investment ILP instead of an ILP with insurance element
HI Kelvin, it is a very interesting video and you shared out more cons than pros. However, base on your research like you said only for AIA products. Is this 6mo ago product had been improve? Your video is perm in YT but you did not update the latest product by AIA. It’s good to have different sounds but for me it is not really good of direct people to move away from ILP.
If purchase with AIA, there is at least a fund manager to help for monitor and most importantly, death benefit is guaranteed. Just my own opinion. No offence.
I always tell people that ILP sucks and that one should invest by himself. No one believe me. Now I can share this video.
Can you sit by me for the next 10 years to guide & teach me how to invest in shares & ETF?
Yet you are getting the wrong information
why it is wrong information then?
@Ryan also, can you sit with me and guide me everytime there's a movement in the allocated funds of ILP?
I think the main issue is usually these ILP fund underperform, hence the compounding effect does not seem attractive. You need to buy a LOT to even have a proper insurance coverage.
Plus the fees and charges are way too high in ILP.
Hi Kelvin, cud u plse kindly do a video on buying second hand premature terminated insurance policy with high return
ILP is a bad idea for consumer. So many things are not transparent and you will not be able to figure how they cost in all kinds of things on the investment side.....Then when you feel like giving up and terminate, you feel sayang for the small life coverage esp as you age...And that's when you know they have hooked you.
Do you consider FWD Invest First as a typical ILP too? I mean I know it is labelled as one but it feels different from most ILP explanations, but i got mixed reviews about it. Wondering if you have any knowledge on it 😅
FWD Invest First is not the typical ILP in the video.. its an ILP that does not provide those TPD, CI coverage thus works differently. They are also those type that invests 100% of your money into funds instead of those low amount like the typical ILPs. Nowadays there are a lot of ILPs that don't provide insurance coverage.
There are a few more differences but its better to seek out a trusted advisor to explain it to you and see if its suitable to your needs
@@alexoh4748 thanks for that. Yea so that's the thing... Based on what my advisor has said, it gives access to special funds which otherwise wouldn't be normally accessible. But because its called ILP as well, i get confused and a little paranoid whenever videos like these pops up 😅
Hi Kelvin, would be grateful if you can advice is ILP principal gurantee
ILP principal is not guaranteed. If it is a plan that has coverage like CI, the sum assured remains what u sign up for irregardless of Fund performance (Sum assured will not change on claim unless u have some premium-paying issues)
Lost almost $5k for the 2.5 years ilp. This worst scam ever
Hi Kevin, i would like to ask for your opinion too. In this video, you solely mentioned ILP with health coverage. But there are ILP that is fully investment based. Do you mind sharing your thoughts of it? I believe you will see it differently from whole life ILP right?
For example, traditional endowment plan vs investment based ILP?
it does not matter if it ILP with health coverage or ILP that are fully invested. The major issue is cost. ILP charges u layers and layers of fees that eats into investment return and make it such a terrible product.
@@seamuslam well, i guess for someone that is not investment savvy, can’t discipline themselves to invest/save monthly. Have a weak heart towards a bear market. The expense ratio paid should be worth it right?
And yes, managing your own brokerage account might be easy to you. But definitely not for alot people
@@Ryan-ts6un In today's environment, there are tools easily available and accessible. If you can't discipline yourself, you can set up auto transfers to take your money out and autoinvest regularly similar to ILP. If you do not know what to buy, just buy a broad market etf like S&P500 or even global market ETFs. If you still feel like you need professional opinion/advice, you can seek out independent financial advisors to do a 1 time review of your finances and advice accordingly or just to help you setup your auto-investing pattern, instead of paying ILP agents/fund managers hefty premiums which eat into your profits even more and are biased towards their products. The only certainty in investing is fees, so you want to minimize that as much as possible. In the short run it may not look like a lot, but in the long run after you build up your portfolio, even a 0.1% fee difference make a big impact on your returns.
@@Ryan-ts6un investing can be simple, but we have always been told that it is something that is extremely risky and difficult to manage. And the ppl that make us think so often has an agenda e.g. they are after our fees and commissions.
As for the risk tolerance, whether u r investing yourself or through an insurer, you are still facing the same risk. Buying fund A through ILP does not magically make it less risky than buying fund A yourself. And having a weak heart is often because the person do not have a clear picture of his/her financials and goals.
Signed up for my first and only ILP with NTUC Income in Oct 2014. Was mainly making a loss before COVID started. During COVID I was making a sharp profit. Today (Feb 2024) it says I made 29.23% profit ! I can take out today but I am not going to. I will take out once I am retired. I am lucky I chose the right fund wisely to invest. (Ask me how)
How
To find the best ILP fund to invest, I decided to first check when or what year the investment fund started. I chose one which started in the year of the PIg because it represents wealth. This was what I predicted back then. @@KelvinLearnsInvesting
u never answer him leh. how
Hi,
Can you advise on whether i should take up critical illness insurance policy?
Yea, if u can afford it, its better to sign up. Cos the earlier u sign up, the earlier u lock in the price. In singapore, there’s about 1 in 4 chance of getting cancer in our lifetime
what camera do you use for your video? its good..
iphone 13 pro max
LoL. I thought this was about removing armpit hair.
Lol I m sure this a good idea for Kelvin Gor
How about Axa pulser?
lol AXA PULSER biggest scam ever. sign up bonus of 160% bonus sounds attractive. cons, lock in at 30years + as kelvin mention market returns over 10years can only at at 1% technically ur losing money. Not to mention the fees thats being added up ur losing alot over the years. termination fees will also eat back into ur intitial deposits as well. all in all. just run from ILP. the fund managers are mostly suckish and losing investors money. Dont listen to sales talk for agents. If you have real money find a 1-1 fund manager to grow your money for you, not a ILP. Safest you can even put your money in SSB, SGS or T-BILLS in guarantee return bonds from singapore goverment.
Cool, always wanted to know this but too lazy to look into it
ILPs are just rubbish and a way for agent to earn good comms. If you want coverage just buy insurance. If you want investment, buy SPY/VOO, simple
So many fees.. that's y so many ppl want to be AIA agent
Kelvin, you are giving out misinformation like the naysayers and public.
There are 3 types of ILP in total. Do you know there are 100% invested without insurance?
Even the traditional ILP is beneficial for the younger person for an insured amount. You have no idea what you are talking about.
ILP also locks up useful liquidity.
Insurance is like the company betting statistically favored against you dying or falling sick etc lol, so not worth it
I'm not sure of your point, but they don't want you to claim and pay out, you know? It's good for both you and them if you're healthy.
Glad I had an ILP. Only remember having it after I've retired. LOL. Extra cash for me. 😜😜
Wouldn't you have done better if you invested the money elsewhere? Pay a lot less fees.
@@shutengloke5907 For sure, but for one like me, who can't even remember I have this ILP, don't expect me to have invested the money elsewhere more productive ... coz I'm one of those who don't pay attention to financial-related stuff. Thus, that old ILP was kind of an accident and bonus to me. 😅
Saving plan next topic
Here you go ruclips.net/video/9GGZSYO9-6g/видео.html
@@KelvinLearnsInvesting what about structured deposit?
Please listen to Kelvin, no one dare to tell you the truth. AIA tomorrow will bring down their data sheet !
For my experience, especially those young agent wearing mini skirt....be careful. Most of them sell you ILP. Kelvin should know...he must have some experience. hehe
Lol
Do u even know that there's ILP's that are just focused fully on investment? U dont right? There are such plans around. Your video is mainly covering on insurance cum investment policies on ILP. It's not saying ILP's is bad its just good to diversify what u have. People who think ILP's are bad is because due to the fees but in fact have u seen the benefits of it? It's all the naysayers that rumors things up.
Can share what’s the benefit of ILP based investments that justifies the higher fees?
@@KelvinLearnsInvesting there are bonuses and maintenance fees that can be refunded at the end of the policy. More over the charges can be used to substitute from different accounts. Anyway obviously u don’t have a IlP and u are a trader yourself so this is definitely not something that u will have due to its ‘high costs’. The target audience is already wrong in the first place.
I thought Kevin ever invited an agent to talk ILP before on his Channel. Not sure if I recall correctly.
@@kumsoonwong143 that video got him shoot down at his foot badly.. just look at the comments from that video. He became a hated subject immediately after that video and he apologies and mentioned he won’t do such a content any longer
@@ee-sj8qr you are right it really depends on the target market and not everyone is savvy. Every product or investment has their merits and disadvantage and suitability to different segment
Did you just wake up? Lol