Insurance
One policyholder’s endorsement of his own regular premium ILP
By Patrick Lim  •  October 8, 2009
[caption id="attachment_3174" align="alignright" width="150" caption="Photo by striatic"]Photo by striatic[/caption] Investment-linked products beneficial in the long term I REFER to last Saturday's Forum Online letter by Mr Larry Haverkamp, 'Cheaper to invest in unit trust than regular-premium investment-linked products'. It is true that all front-end loaded investment-linked products (ILPs) will invest only a small percentage of premiums paid in the initial years of the policy. But it is also true that some ILPs do invest more of the premiums paid over the years, even exceeding the premiums paid in later years. Mr Haverkamp focused all attention on the ILP charges, as well as the single benefit of investing in unit trusts, that is, incurring much lower charges. But he failed to mention or realise the valuable insurance benefit the plan provides, which is the other reason why ILPs are an attractive product, as opposed to buying a standalone term policy and investing in unit trusts.
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By Patrick Lim
Patrick is an Associate Director with Promiseland. He has more than 20 years of personal investment experience both in stock and shares and unit trusts. In his early years as an investor, he got burnt really bad in the infamous 1987 crash and again during the clob incident. With 2 decades of so-called battle scars behind him, the last few years (since 2003) have been good to him especially with his single country funds doing exceptionally well. On his investing style, he is both a technical analyst and fundamentalist. Patrick view wealth accumulation as part and parcel of the wealth management process but only if one has already executed his/her wealth protection planning on an on-going basis.
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