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AIA Platinum Legacy Policy
06 Apr 2017 (76 views)

Mr Tan,
Can I solicit your advice on this product?
My Citi RM is trying to get me interested in this product.
My experience from 2007-2008, has made me wary of RM's foisting financial products on uninformed and naive clients.
Thank You & Regards,

REPLY
You invest $480,000 in single premium into the policy and $62,000 is taken away from you immediately to pay commission to the agent, his manager, to provide life insurance cover and to give profit to the insurance company.

You are guaranteed an interest rate of 1.5% and a projected interest rate of 3.5% on the balance. If the interest rate is 2.5%, it will take you 5 years to recover the sum that is taken away.

The positive side is that it does provide coverage. The sum assured of $1 million is payable on death. This payout will be higher than the invested sum (plus investment gains) if death occurs during the earlier years.

There are better ways to invest your money. I prefer to invest in the index fund (STI ETF) which gives a dividend yield of about 2.5% and the prospect of capital appreciation over the long term. It does not take away 12% of your invested sum upfront.  

Click on the link below to view the Benefit Illustration for this policy.


AIA Platinum Legacy Policy
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Mr Tan,
Can I solicit your advice on this product?
My Citi RM is trying to get me interested in this product.
My experience from 2007-2008, has made me wary of RM's foisting financial products on uninformed and naive clients.
Thank You & Regards,

REPLY
You invest $480,000 in single premium into the policy and $62,000 is taken away from you immediately to pay commission to the agent, his manager, to provide life insurance cover and to give profit to the insurance company.

You are guaranteed an interest rate of 1.5% and a projected interest rate of 3.5% on the balance. If the interest rate is 2.5%, it will take you 5 years to recover the sum that is taken away.

The positive side is that it does provide coverage. The sum assured of $1 million is payable on death. This payout will be higher than the invested sum (plus investment gains) if death occurs during the earlier years.

There are better ways to invest your money. I prefer to invest in the index fund (STI ETF) which gives a dividend yield of about 2.5% and the prospect of capital appreciation over the long term. It does not take away 12% of your invested sum upfront.  

Click on the link below to view the Benefit Illustration for this policy.