Investment linked plan under NTUC Income

Hi Mr Tan,

I read with interest your article about saving for children's education. However, you still strike me as a very big fan of insurance despite advocating investments (investment linked plans).

Since there's all the issues with high overheads and commissions, isn't it better for one to invest purely into investments, instead of through the insurance companies such as NTUC?

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REPLY:

The investment linked plan from NTUC Income has low front end charge (less than half of the other insurance companies). The annual charge is lower than most unit trusts.

If you study the total cost over 18 years, you will probably find that NTUC Income still give better value (compared to a unit trust).