I bought my first insurance policy, an ILP, at the advice of my then-financial agent. 2 years later, I cancelled it once I realized how I had been misled to think favourably of a policy that clearly wasn't that beneficial to me. The biggest flaw I didn't spot then was the distribution fees, which entitled the fund managers and my insurance agent to be paid rather handsomely for managing my investments.
At that point, I was thinking, if I'm already spending so much time swopping my funds, why should I be paying the fund managers? If I'm paying someone to manage my investments for me, then they better do a job good enough where I don't even need to interfere. Furthermore, I can manage my own investments, so why continue with this useless ILP which I have to pay for over 20 years before I can even breakeven?
I've not regretted my decision ever since.
A friend of mine whom I consider to be rather financially-savvy also recently terminated his ILP, and publicly shared his cancellation experience on Facebook. I reproduce the conversation here:
Till then, stay clear of ILPs (or at least reconsider whether you realllllly need one).
P.S. Whose pockets are ILPs reallllly lining?