I have always not been a supporter of regular premiums investment-linked plans (ILP).
While the product is fairly transparent, most people who buy ILPs do not really know or understand what they have bought.
Investment returns are not guaranteed, and the level premiums can be misleading as the mortality costs actually goes up with age.
It is even worse when an elderly buys a regular premium ILP, as the investment will not have sufficient time to grow so that future mortality costs can be properly funded from the investment growth.
This case here is a typical story and I’m sure there are many others around.
Not only regular ILPs but also whole life/limited payment WL are sold to elderly. I heard of stories of people of 60+ years old sold CI cover with $20K yearly premium payable for 10 years.Reply
The unscruple is rampant.