Bye bye investment linked policy (ILP). We finally pulled the plug on my wife’s ILP. The one she bought from her ex-classmate after she snagged her first job. Who is no longer even in the company. Or the industry.
I spent a little bit of time reviewing her current coverage and decided to make a little adjustment for her. At 60% of her old ILP policy’s monthly cost, I have gotten her four times the coverage that her ILP was giving her.
Instead of going via the compareFIRST route, I want with DIYInsurance (by Providend) instead. I trusted the company. I liked having a neutral mind to help me out. And I preferred to have a certain level of service associated with insurance, particularly in terms of my queries and/or claims if we eventually reach that situation.
Isn’t direct-purchase products cheaper? Yes, but note that there are some differences. Don’t forget to do your homework. For example, in this instance, I wanted to get no-frills TPD/death in and critical illness coverage till 65 for my wife. For direct-purchase products, the list of included critical illnesses is not the standard 37 but only 31. Rarer illnesses, yes, but I felt that insurance is for protection no matter how likely certain scenarios are.
The service I received was prompt and efficient. Basically, I just had to give my requirements and the assigned adviser would help me to source for the best products that met my needs. It helped tremendously that I was already fairly informed of what was required. Tweaking of requirements was fine. Updated information and products would be provided via email until the actual meet up for paperwork to be done.
Even the physical meeting was exceptionally short because there wasn’t much questions – I went to Providend’s office with my wife during lunch time and it took less than half an hour. If you’re feeling hungry, you can drop by Man Man just 5-mins away for an awesome lunch.
For the policy value that she has cashed in, I had left it for her to make the decision on what to do with it since it was her hard-earned money. And her new insurance, as of today, no longer has a get-back-money component. Assuming status quo, she now has 40% of her old ILP policy’s monthly cost to divert into investment, after using 60% to beef up her coverage.
Guess what? She asked me on how she could invest it! Baby steps are great. She has even started asking few questions here and there on her tiny investment portfolio 🙂
Looks like my little inception project is paying dividends. Metaphorically and literally. Just last month, her tiny portfolio yielded her first ever quarterly payout of $57.70 and I can tell you for sure, there is no better positive reinforcements like getting cold, hard cash keching!
You see, starting with $4,000 gets you a $50 payout every 3 months. Imagine this – what if you had invested “only” $12,000? You can get, on average, $50 every, single, month! That’s like an invisible elf/dwarf who works hard 24/7 with no complains and earns money just for you!
More Than Index Investing
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