Dear Mr. Tan,
I am trying to find a suitable investment product. I go to a bank, it sells me unit trusts. I go to an insurance company, it sells me ILPs. Can't insurance companies sell units and bank sell ILPs as well?
REPLY
Banks already sell ILP for insurance companies. These products have the same high charges and give poor value to customers.
Insurance companies do not sell unit trusts. They prefer to sell ILPs which allow them to pay high commissIon to their agent and earn a high profit margin.
Banks sell ILP for insurers as so-called "banassurance" products.
ReplyDeleteInsurer cannot sell unit trust as there is no mortality element in it and MAS would not allowed unless they are licensed to do so.
Best bet is to buy unit trust compared to ILP since the charges on the former are relatively low.
Avoid ILP even it is from God!!!!!
You can buy unit trusts from a independent financial adviser, or websites like fundsupermart or dollardex.
ReplyDeletehongjun
Insurance companies have been given the green light to design ILP products without the insurance element.
ReplyDeleteWhy do the companies hesitate? Simple reason, insurance salesmen do not know how to sell an ILP without insurance like UTs because they always bullshit the cleints that ILPs are better because they have insurance coverage and because the cleints are stupid enough to believe them.
So you can see, without the insurance element the insurance salesmen will have a hard time selling ILPs, no difference from UTs.
Anyway, ILPs and UTs are sold wrongly. They are sold as ends in themselves and not as vehicles of wealth accumulation. Sometimes they are bought like stocks and shares and even speculated. You have insurance salesmen and FAs acting like stock brokers advising clients when to buy and sell. This is a big joke and this is possible because you have customers behaving like them too.
One more thing consumers MUST KNOW and that is the insurance element in ILPs is NOT FREE. You pay indirectly and it is deducted from the NAV. So, the next time an insurance agent or salesman tells you that you are given free insurance coverage for ILPs tell him or her in the face that it is bullshit and cheat and that they are liars.