ILPs are an extremely complicated product that is constantly evolving to suit our needs in this day and age where alternative investments are gaining traction.

We have encountered a number of people sharing their experiences and blaming their agents for making them buy an ILP.

What is an investment-linked plan (ILP)?

In short,

ILPs = Life Insurance Coverage + Investment

Life Insurance Covers Investment Involves • Death
• Total Permanent Disability (TPD) (Optional)
• Critical Illness (Optional)
• Early Critical Illness (Optional) • Premiums are used to purchase units in one or more sub-funds of your choice.
• Some of the units purchased will be sold to pay for insurance and other charges

There are 2 types of ILPs available in the market, single-premium and regular premium, for this article, we will only be talking about the regular premium ILPs.

Regular Premium ILPs: You pay premiums regularly (e.g. monthly, semi-annually, annually) depending on you.