By: Adrian Khiat I get into debates occasionally with my fellow colleagues or friends in the industry about Regular Premium ILP. It irritates me whenever I saw such plans being recommended. I'll always ask them why was this plan recommended and under what circumstances will the client buy the idea of getting such plan of substantially higher cost. They will always give their views and I'll present mine but never into a heated argument. They offered valid views but I cannot accept it. Perhaps I can share with you how some people are being convinced into buying a regular premium ILP. 1) Spending more time on the concept of buy term, invest the difference and dollar-cost averaging * They will focus on this point and the potential returns. A lot of time will be spent in this area. * As the clients get so focused on the concept and returns, agent is likely able put little emphasis into the charges in the later part. * The client may not realise how these charges will eat into their so called "Potential Returns" * However, when client start asking about charges, agent will start justifying by..... 2) Comparing a Life policy with an ILP * Life policy has no cash value in the 1st 3 years. ILP have cash value from year 1. So ILP better. * Life policy have their charges, ILP also have their charges. The charges are more transparent for ILP and you have the option on how you want to invest your monies. So ILP better * With Life policy, you can only get $50k with $100/mth, with ILP, you can get $200k coverage. So ILP better * With Life policy, you have to keep paying premium, ILP, you can take premium holiday and stop as and when you need to. So ILP better. * With Life policy or Endowment, you need to take a policy loan if in need of money, with ILP, you don't need to as you can sell your units to get the money. So much flexibility. So ILP better. * They can offer so many reason that it seem foolish not to get an ILP. * However, if client is slightly smarter and asked about Term policy, agent will justify by saying...... Read more...