..as an agent, try not to give general statement like this. I would have thought then this must be the 'expected' returns EVERY YEAR... and if I bought the ILP last year, i would have 'damm' the agent who told me ''...around 8 to 9%'... There is a better way to explain to the client on what should be expected out from the ILP plan.

..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..

adding up to what I've mentioned earlier, telling a naive prospect as to how much the fund makes in the past 10 years may well lead to a misleading understanding. For example, C.o.o.l mentioned PRUlink equity as about 9.4% (p.a i presume) return rate for the past 10 years. But as an agent it would be nice if you could tell the client that this 9.4% is merely the fund's performance, NOT their 'investment''s performance per se. They paid 3K a year for an ILP, it does not mean they could get back 9.4% on their 30K investment after 10 years. Very often the payor is not aware of the % portion that is being 'taken away' by insurance company for the first 7-8 years. 'Taken away' meaning portion of your premium is not going into funds purchasing fully. ie. only 30% of your premium in first year is used to purchase units; 45% on the 2nd year; 70% on the 3rd year; etc. In total i think is is something like 100% or 200% of your annual premium over the 7 - 8 years period are deducted by insurance company as an 'administrative charges'. ... You can only hope that a break-even will happen soon after 10th year of premium paid.

most, if not all, will have this generic term in the policy contract. So long it is portfolio withdrawal and not based on individual's claim experience...

That's correct... I suppose they need to protect their business too...It makes perfect sense to me although I dislike this term too. So, for standalone plan, you should be concentrating on nailing down plans that DO NOT has this term instead.. Which means they could withdraw the continuation of your coverage purely on you, as an individual basis...

just a piece of advice to those who plan to put your haard earned money into those so called 'saving' policy. Do spend sometime to search around this forum, you should be able to find some negative comments (you don't need positive's as those plans naturally give you a perception that it is GREAT!) about these saving plans in the market... Always ask yourself, does the huge sum of premium paid worth the protection you are getting? Do a future value or effective rate of return calculation on the those 'expected' returns... you might be able to spot something there then... Best of lucks

This post has been edited by numbertwo: Sep 17 2009, 04:25 PM