A major insurer in Singapore is proudly celebrating 20 years of investment-linked-product  (ILP). The company claims to be “the first to bring a comprehensive suit of investment-linked-products to consumers“. Smart use of words there as they are not the first to introduce ILPs here. Another insurer did that earlier but ILPs did not take off then. The former had really popularise ILPs in Singapore.

The first batch of people 40 and above who bought into the ILPs would be reaching 60 and above now. Assuming they are still holding on the the policy with the same sum assured, insurance charges may start to escalate exponentially. This, coupled with the volatile market in the last few years, may be detrimental to their policy value. Those holding high risk funds (think the used-to-be-so-popular china-india funds) could face increasing insurance charges at decreasing unit prices, meaning to say more units will be deducted ...