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Is there a risk in this single premium investment?
28 Jul 2021 (1228 views)

Dear Mr. Tan,
An agent recommended the following life insurnce policy:
Insurer NTUC Income
My age: 53 yrs old
Policy Term till 120 years old
Premium Term 1 Year = $106,064.00
Plan Name - Luxe Solitaire
Est. Financing Interest 1.600%
Premium Financing Amt $252,000.00
As this product have a high yearly payout yield of 8.23 %, but it require financing loan from bank.
Is there any risk for this kind of product ?
Is there a risk that the insurance return is lower then the the financial interest 1.6% ? 

REPLY
I usually advise consumers - never invest in any life insurance policy using a bank loan. 
Here are three articles posted in the FISCA website.
https://fisca.sg/Article.aspx?Keyword=borrowed
You can join FISCA and read the articles
https://fisca.sg/register.aspx
 


Is there a risk in this single premium investment?
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Dear Mr. Tan,
An agent recommended the following life insurnce policy:
Insurer NTUC Income
My age: 53 yrs old
Policy Term till 120 years old
Premium Term 1 Year = $106,064.00
Plan Name - Luxe Solitaire
Est. Financing Interest 1.600%
Premium Financing Amt $252,000.00
As this product have a high yearly payout yield of 8.23 %, but it require financing loan from bank.
Is there any risk for this kind of product ?
Is there a risk that the insurance return is lower then the the financial interest 1.6% ? 

REPLY
I usually advise consumers - never invest in any life insurance policy using a bank loan. 
Here are three articles posted in the FISCA website.
https://fisca.sg/Article.aspx?Keyword=borrowed
You can join FISCA and read the articles
https://fisca.sg/register.aspx