What is an Investment-linked Insurance Policy (ILP)?

Investment-linked insurance policies (ILPs) have both life insurance and investment components. Your premiums are used to pay for units in investment–linked sub-fund(s) of your choice. Some of the units you buy are then sold to pay for insurance and other charges, while the rest remain invested.

The above definition is taken from MoneySense, you can find out more here. Interestingly, if you try to google “ILP”, this will be the search result and I highly recommend that you read it – The Ugly Truths Behind Investment-Linked Policies by Dollars and Sense.

Unfortunately, CZM was a victim too. She purchased it when she was young and naive at the age of 19 introduced by the family “trusted” agent. Fast forward 7.5 years later, she finally saw her “investment” break even… I will not explain or go into the details why ILP is a …