(21-04-2013, 10:34 AM)Traumfanger Wrote: And another point my friend brought up, I find it hard to argue? He mentioned that ILP has at least a guarantee for the principal sum paid. While investment doesn't have that. Then I told him, investment in a company, a company rarely suddenly collapsed. You sell when your faith of the company is no longer there. And don't forget throughout the years, the dividend you collected are also money. And for ILP, the breakeven for average is about 10 years. For personal investment, if you are doing it well, you start earning from the first year!
Then he said, this person has no time to identify when the company fundamentals are shaken, and when to sell or buy. After work just want to do his own thing don't want to spend time in finance related stuff. Because he don't know anything about it... Which brings back to square one. If the person really can't be bothered till that kind. I think he should just have that "instant noodle"
Your friend is still either very green or very dishonest! There is no guarantee of principal sum in ILP at all! There is no "Guarantee" column in a ILP's Benefit Illustration! If you see any, please attach here, and I will apologize for calling your friend green or dishonest.
Quote from "http://www.moneysense.gov.sg/understanding-financial-products/investments/types-of-investments/investment-linked-insurance-policies.aspx"
"Unlike whole life or endowment participating policies, ILPs usually do not have guaranteed cash values. The value of the ILP depends on the price of the units in the sub-fund which in turn depends on the sub-fund’s performance."