oh.. so it is ILP lah.. Investment linked policy?hehe, ok.
Out of all insurance, this one I never like .
My point is , the sentiment towards general insurance products was quite , down. I just feel that, this should not be the case. So many insurance products, there are some indeed, have very attractive points for a long term investment.
Just take one for the sake of discussion,
Prime Life Policy. Idea: to hold it till 20 years (of coz provided the policy holder did not die), then surrounder.
The surrounder return in all will give you around 3.4% return p.a. (excluding all fees, and non-guarrenteed portion we take a conservative measure. i.e. not get all non-guarrenteed portion)
So I may say, to many low risk appetite ppl, these kind of long term investment is worth considering ?
To this specific issurance.
You'd better look how many equite-investment funds which generates annual return less than 3.4%. There should be very few of such bad skilled fund managers.
Then you may want to evaluate the expected return from the equity funds. If the expected return is high, say 7% on average, of course, you should not buy the issurance since you can put part of the money on the equity fund, and use the rest to buy purely life insurances.
If so the result will be either the insurance gives the same protection and you get higher return for the investment, or you get the same return for investment and be more protected by the insurance.
Then you may want to evaluate the expected return from the equity funds. If the expected return is high, say 7% on average, of course, you should not buy the issurance since you can put part of the money on the equity fund, and use the rest to buy purely life insurances.
If so the result will be either the insurance gives the same protection and you get higher return for the investment, or you get the same return for investment and be more protected by the insurance.
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