Kids Mathematics 2: Investors Trust vs Providence Life

A month has passed since we sent our children off to school. I marked that day with a comparison of two savings plans to cover education fees: Hansard Worldwide’s Vantage and Providence Life’s Compass. Now, I will look at how another competing product, Investors Trust’s Evolution, lines up with Providence Life’s Compass.

This time the results are even more shocking.  Again, both these plans are life insurance based offshore regular savings accounts, which can be contributed to on a monthly, quarterly or annual basis. They are tax efficient – both in terms of money in and also, when applied correctly, money out. Investors Trust is domiciled in Puerto Rico, a dependency of the United States, while Providence Life based in Mauritius.

As I did last time, let’s look at four illustrations*. The first demonstrate savings of $1000 per month saved over 20 years with growth at 5% per annum. The second is the same only with growth at 7%. The other two calculations similar are similar also, instead using $2000 per month at 5% and 7%.

Again, the results showed a clear winner or, to put it less kindly, a horrible loser. Remember, the Providence Life’s Compass is likely tied to DeVere Financial Advisors as was pointed out by the International Advisor journal. DeVere Financial Advisors acts as a ‘supported provider’ to the most expensive product of the all 3 products we tested.

At the basic level illustrated, Compass lags woefully behind Investors Trust’s Evolution by almost a huge $85,000 in value accumulated at the end of the policy term.

, Kids Mathematics 2: Investors Trust vs Providence Life

We see the same trend exacerbate in the $1000 a month savings at 7% growth and the $2000 a month savings at 5% growth both showing Investors Trust’s Evolution much cheaper than the Providence Life product over the 20 years.

, Kids Mathematics 2: Investors Trust vs Providence Life

The outcome of the comapirson between the two life insurance products turns bleak at the $2000 month savings level for 20 years at 7% growth. The Providence Compass product is more expensive by an eye-watering $231,242, that’s almost ONE QUARTER of the saved sum MORE in expenses.

, Kids Mathematics 2: Investors Trust vs Providence Life

Investors Trust offers highly competitive products on the offshore savings markets. By no means are we surprised that their Evolution plan is much more cost effective than the Devere’s sponsored Compass Product. However, the difference in savings provided is almost absurd. Any financial adviser offering these products simply is doing a disservice to investors and the industry as a whole. We hate to see such products on the market. We urge all investors to be very careful when dealing with offshore advisers, especially those using ‘boiler room’ practices of cold calling and high pressure sales of expensive products. There is no room for child’s play in the financial planning market place. This is no kidding matter!

*illustrationsare available upon request. Source: