Avoid high cost ILP

Hi Mr. Tan,

I've been following your blog and it has been really great just reading your entries. You have come across as a very sincere and helpful person.

I would like to get some advise from you regarding insurance. I have bought an investment linked policy with an insurance company but would like to know if its wiser to just buy a pure insurance rather than an investment linked one?

REPLY

It is better to buy Term insurance for the insurance protection and invest in a low cost investment fund. This is explained in these FAQs:

http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/low.html

Most investment linked products have high charges that take away two years of your savings:
http://www.tankinlian.com/faq/ilp.html