LU JIA JUN

The ILP Fee Audit Checklist

Work through this once and you will know exactly what your Investment-Linked Policy costs you, and where to push for a straight answer. Tick each line as you confirm it.

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1 · Find every charge

Fund management fee. The annual % each sub-fund deducts from its price (often 1% to 2%). It never shows on a statement. It is taken before the unit price.
Policy / admin charge. A recurring cost, often deducted by cancelling units each month.
Insurance / mortality charge. The cost of the protection bundled into the policy, which can rise with age.
Bid-offer spread. The gap between the buy and sell price of units.
Fund-switching fee. What you pay to move between sub-funds, and how many free switches you get.
Surrender / early-exit penalty. What you lose if you stop in years 1 to 3. This is usually the heaviest cost.
Adviser trail. The ongoing commission paid to whoever services the policy. Ask who currently receives it.

2 · The five questions to ask

“What is my total cost per year, in dollars, not percentages?”
“What would I get back if I surrendered today, and in year 3?”
“Who services this policy now, and who receives the trail commission?”
“When was my fund allocation last reviewed, and against what?”
“If markets fell 30%, what is the documented plan for my policy?”
A clear answer to all five is a good sign. A vague answer tells you something too.
Bring this checklist to any adviser. Including me. If someone can't answer these questions about a policy they sold, that's your answer.
Then check who your policies pay out to: the family checklist →

If you'd rather go through it with someone

Risk and financial planning with me starts with a financial audit. We go through what you already have, what's missing and the questions worth asking next. If you want advice after that, I'd do a full fact-find first, and only if you ask for one. There's no cost, and nothing changes unless you say so. I'm paid by commission or an ongoing fee if you buy anything through me, and I'll tell you that amount first, in dollars.

Book a financial audit

Lu Jia Jun · Financial Adviser Representative, GEFA · RNF No. LJJ300837068
General information only, not financial advice. Figures vary by policy and provider.