In a two-part series, we explore the world of ILPs, or investment-linked plans. In this second part, we sit down with award-winning financial services consultant Mitch Ong and grill him about ILPs and their supposed effectiveness.
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Mention ILPs, or investment-linked plans, to any person with a modicum of financial knowledge and you’re bound to elicit a passionate response for or against this particular product. In the first part of this series, we spoke to asset allocation specialist Brendan Yong, an advocate of the buy-term-and-invest-the-rest strategy, as he explained why you shouldn’t put your money in ILPs.
READ: “You Shouldn’t Buy ILPs!” Brendan Yong
For the second part, we head to the other side and shine the harsh spotlight on award-winning financial services consultant Mitch Ong, who gamely tackles all our questions.
Why have ILPs been getting the short end of the stick in recent years? Are they ......
Mitch Ong’s bio in his facebook and website stated that he is a Director of a general insurance firm. Does that mean that Mitch is not even qualified nor licensed to give any advice on life insurance such as ILPs? Why can’t Mitch Ong reveal which Principal he represents?
I want to ask Mitch Ong this question: If commission is a fixed absolute dollar (for discussion say every product he sells will always earn him $100 regardless of sum assured and types), which product would he recommend to his clients? Whole life? ILP? H&S? DI? PA? Term?
@anonymous: I do not represent the views of any insurer or company in this article but that of my own. Neither is there any representation of any specific companies, company products or solicitation for business: It is an interview. The article has its primary discussion pertaining to ILP, as a financial instrumen,t regardless of company.
My answer to your question is already present in my article. Every client is different and will have different needs. That is what the fact find procedure in financial advisory is for. I recommend different products to different clients but of course there are certain basics: The average Singaporean working adult should get a hospitalization plan, term/whole life/ ilp plan to cover death, tpd and critical illness and personal accident plan. Even this is based on far too many assumptions.
Think about it. When you see a doctor, he has to ask you and check your symptoms to diagnose what is the medical condition right? Imagine the horrors if you visit a doctor with a cold and he prescribes you cough medication without asking you about your symptoms or taking you through some medical tests like taking your temperature or blood pressure.
It is the same for financial planning, the financial planner’s basis of recommendation is only as good as the client’s needs. Yes I am qualified and licensed to give advice on life insurance. My clients across the years have bought a vast range of products ranging from H&S, term, whole life, limited pay whole life, investment linked to endowment plans from just within the spectrum of ‘life insurance’.
These are good and valid questions. I have a very busy work schedule and might not be able to answer all your other queries but thanks for this.