Tan Kin Lian's Blog: Cut the loss in an ILP

Thursday, April 17, 2008

Cut the loss in an ILP

Hi Mr. Tan,
Thank for your quick advice, seems like I had really made a bad investment decision by over-trusting this insurance agent friend of mine. A painful lesson learnt for me, but the plan will be 1 year old soon, all I can do is to keep it. Will continue to read your blog! It's really interesting!

REPLY
You can consider terminating the plan. As only half of the upfront charge has been incurred, you may be able to reduce your loss by terminating it. It is better to invest your savings in the STI ETF or just to keep it in the bank account for the time being.

11 comments:

Anonymous said...: Yes Mr. Tan is right. The earlier you cut the loss is better for you. You have 2 more years of debt to pay to your agent. Cut it and start a new plan. You may want to consider ID7 from NTUC which is essentially a regular saving plan and with minimal charges. Remember it is ID7 and NOT ID2 which the agent may pull a fast one on you. You know insurance salesmen are tricky and you have to be wary of them.And ID7 is sold ONLY at the business centre. All the best; April 17, 2008 9:50 AM
Anonymous said...: Yes i agree, the earlier you cut the loss, the better for you. 1 year of loss is not that much yet, you will lose more if you continue. I decided to cancel the policy after 9 months and i have never regretted that decision. Decide carefully, the choice is yours :); April 17, 2008 11:31 AM
Anonymous said...: before you terminate your plan, here are some thing you should consider:

1. determine if this ILP was purchased for the right objective ;

2. do you compromise any coverage because of your decision to terminate the plan ;

3. verify what you read from Mr. Tan's posting with the insurance agent - if he is a professional, he should justify his actions ;

4. there is no best plan or perfect policy - it is up the individual's risk tolerance, acceptance of the product's features and flaws and other conditions.

R; April 17, 2008 11:45 AM
Anonymous said...: the objective is investment and the vehicle is a broken down vehicle, how to take. Abandon it is the right thing to do.; April 17, 2008 7:11 PM
Anonymous said...: Hi, I want to terminate my ILP but as the agent is my friend, I am sure he will definitely try and persuade me and by then another pmt wld have been transacted (due using GIRO pmt) , any way I can get them to terminate my plan immediately?; April 18, 2008 12:31 AM
Anonymous said...: I won't be surprised if 90% of the regular-premium ILP holders lose money. You're just one of many of them.; April 18, 2008 5:44 PM
Wealth Journey said...: It's really sad that insurance agents give FINANCIAL ADVISORS a bad reputation.

But it's strange that no one is complaining about the banks personal bankers and such who sells you stuff and do not even evaluate your financial status or your needs.

Such is the power of perception.
Let's hope MAS starts looking seriously into this issue and help everyone who needs to earn a living honestly get on with the job.; April 18, 2008 7:46 PM
Anonymous said...: The plan you bought is NOT a saving plan or decent saving plan. No insurance agent will tell you, not even your friend. Why tell you ; the commission is so good, 50%, 25% 25%, 10% thereafter for a few more years .
People who get into this insurance business gradually become like all of them, ruthless and unscrupulous. They betray friends becuase of money and you are one of his unfortunate victims.
Do you think all those mrt, tot cot agents qualified for these awards by selling term plans? If they are not unscrupulous they won't be in this business.; April 18, 2008 11:15 PM
Anonymous said...: Ban this kind of product. It only gives benefit to the Sales Agent and Company, totally unfair. Even money game can give benefit to early member, and that's ILLEGAL. So, why don't just ban this product because it won't give benefit to customer? Or, at least, give more information to the public. I believe most of the people that purchase their life insurance from Sales Agent in MRT doesn't know much what they purchase. PLEASE..; April 20, 2008 1:14 PM
Anonymous said...: ID2 ID5 or ID7, all these were introduced in Mr Tan's tenure as CEO.

Does this mean that when Mr Tan left, this plan is no more worth what it was?

Mr Tan, you gave talks then and introduced Ideal Plans then, does this mean it is not a good plan that those who took it has to surrender it?

This is sad that it is perceived as insurance agent friend cheating their friend.

Mr Tan, be fair and courageous to post this, are you causing friendship to be broken just because you are no more CEO of Income?

Please do not damage people's friendship with such irresponsible blogging of yours.

You have to be fair to other people's friendship and not sour it for others with your blogging.

I dare you to post this or edit it and post it.

Please, bear a thought and not to create enemity in society like this.

Be a gentleman.

It is sad that a public figure like you is causing such enemity because of plans introduced by you and now you can comment as if it is a mistake for those who took it.

Touch your own heart.; April 26, 2008 10:17 PM
Anonymous said...: Mr. Tan has not criticsed these plans. Where did you get this? You must be getting low sale now and think Mr. Tan is the cause. It is not
but your inability and incompetence that you should be looking at.Bad workmen always blame their tools.; April 27, 2008 9:30 AM