Dear Mr Tan,
I chanced upon your blog and saw many posts related to insurance. I was approached recently by an insurance agent promoting me a ILP. I am only 20 this year, awaiting for ns and university.
I understand that you urge young people to not get ILP so early due to the effective returns calculated in the future after deducting the premium allocation. It would be more economical to get a savings plan and a life time term plan for illness or death coverage.
Although it is a good practice to cultivate a habit of saving. Is it even necessary for me to get a ILP in the future? I may have more financial knowledge when I grow older and may be able to manage my own basket of investments. Will an ILP be required when I grow older?
My objective of an insurance at this stage will be to save for about 10years to create a substantial amount of savings for future investment use when I grow older. My second objective will be to cover a plan for death or critical illness or disability as I'm about to enlist soon.
It is better for you to invest in an ETF, rather than an ILP. REad this article