Two visitors posted in my blog - that is is better to invest in a unit trust with a term rider, instead of investing in a investment linked plan. They asked for my views.
Generally, they are correct. Many ILPs have high charges and take away 1 or 2 years of savings. They also have the front end and annual spread.
The Ideal plan from NTUC Income is different. It invest 100% of the regular savings from the first month (like a unit trust). The front end spread is 3.5% and the annual charge is less than 1%. A unit trust usually has a front end spread of 5% and an annual charge of up to 2%.
By investing in our Ideal plan, the investor may be able to get 5% to 10% more over a period of 10 years - from our lower charges. It is better than invest in our Ideal plan (and select our Combined Fund) that a unit trust.
Do attend our educational talk on the combined fund. The schedule of the talk is found at: www.income.coop/seminar/
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