Love-Hate ILP

1. It is common that many would critic on ILP. 

2. Not that we investors would be bothered with ILP or whatever its name; as what was well said:  "Ne it white cat or black cat.  Any cat that can catch mice is a good cat" as coined by chinese ex-Premier Ding.

3. If any investment is not serving any purpose or not optimal, one can exploit its strength to good use.

4. Every investment serves its purposes; either shareholder wins or Mgmt wins through at fat salary and ownself declared bonus.

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5. One advantage of ILP insurance is that one can withdraw its cash value without terminating the policy.  The units held are in Fund units; so its Cash Value depends on Fund performance.

Example1: optimal use of ILP PVA
Someone bought PruVantage Assure (PVA) which suits him. He earns lifetime high dividend payout, though expected portfolio value would reduce, but yet capital is guaranteed upon bequest. If he holds till bequest, he gets best of both world.

Example2: Optimal use of ILP PrudLink
For my PrudLink ILP, I withdrew my policy Cash Value when the SG Asian Managed Fund price was high.

I use this converted cash to buy new investment which gives annual return, instead of keeping as Cash value in policy.  This return now pays my Prudlink annual premium.

Prudlink policy premium is now paid for life, coverage free for life.

Insuring when young, lifetime fixed premium is cheap.

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6. Now I buy resale endowments with a new twist.
* I started buying resale lifetime annuity which is not endowment limited payout. 
* I starting buying young people's wholelife plans to serve as my cash CI coverage via their high growing Surrender Value.##
(Caveat: Dont buy blindly. Not all insurers keep their projected SV payout!!)

7. Interestingly, because the lifetime annuity has very long lifetime payout, it is transferrable to my children.  The insured are very young when their parents bought in their names as annuity.

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8. Why did I use new approach##? My Critical Illness (CI) coverage of two policies would expire at age 60/63.  I need another source to replace my CI coverage.

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