QUOTE(numbertwo @ Sep 1 2009, 01:46 PM)
..but it is your 'simple post' that gives everyone impression that 8%-9% return (yearly) is achievable.
Anyhow, wasn't meant to offence you.
And why wouldn't you consider explaining to your prospect how unit trust works, let them aware of the fact that UT is very much based on market condition and how they manage it. Giving a projection to a naive person is as bad as 'misleading' someone , and he /she will hold your statement true if he ever purchase the plan..
ILP doesnt guarantee a return ... its all depends on the up n down of a market.
The amount agreed earlier may be just an estimation. Or it should be traditional LIFE INSURANCE.
But plz check if its ILP or traditional life insurance.( TS havent specify on that YET)
If its ILP and not traditional... upon maturity have TS checked the unit value b4 withdrawal ??whats the mortality rate ?Usually nowdays insurance agents doesnt simply open their mouths and guarantee u after 20 or 30 years u'll get the amount..unless the policyholders asks,then the agents will explain if ILP certain amount will be invested in unit trust's
managed fund under certain insurance company(which is saving apart from amount quoted for protections n etc.)
Eg.RM 200 premium / month.
RM 150 - protection/medical..etc <--- will be changed to unit values as well.
RM 50 - savings. <--- this is the cash tht will be the units and invested in funds.
Plz take note..
The advantage in unit Trusts is the spread of investments open to unit holders. In addition, Unit trust have lower risk when compared to shares. Professional investment service is provided by the fund managers and minimises paper works to the investing unit-holders.Income from dividend can also be reinvested.
But may be insurance agents doesnt tell all the policy holders this thing..
The administration fee,insurance charge,fund management fee,etc., of an investment-linked life insurance policy are usually not guaranteed. They are subject to regular review and they can be changed by the insurance company after giving a written notice over a specific period eg. 3 months.
But Diversification is good.. coz it spreads the risk.
DOnt ever put all the eggs in 1 basket.
Ps: Traditional life insurance Policies does not allow policyowners the option of choice of investment portfolio.
This post has been edited by 4lenAngel: Sep 1 2009, 02:34 PM 
Aug 31 2009, 04:11 AM
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