Advisory fee of 45%

Hi Mr Tan,

I recently bought a policy in 2006 Ideal (ID2) whereby I contribute $100 every month.

As I got a insurance agent to review all my policies, I was being told that my policy has a advisory fee of 15% for the first 3 years which will eat into my investment-and I will not any return being the 15% is just too high. Any reason why the advisory fee is so high.?

P

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Dear P

Please read this FAQ on the Ideal plan:

ID2

The advisory fee of 15% X 3 years is actually quite low, compared to similar plans in the market. So, you are getting quite good value for this plan.

The advisory fee is used to pay commission to the adviser (agent). Our agent earns a lower commission compared to other agents. That is why the advisory fee is much lower.

Most people invest for 10, 20 or 30 years. As a proportion of the total savings, the advisory fee is quite small.

I hope that you agree with me.

Tan Kin Lian