Pros and Cons of Investment-Linked Plans (ILPs) & Who Should Buy It?
By ValueChampion  •  March 7, 2023
A wealth accumulation tool, investment-linked policies may take some time for many to understand, especially with its extreme fund flexibility coupled with unexpected additional fees. Let us help you break it down! What is an Investment-Linked Insurance Plan (ILP)? An Investment-linked insurance policy (ILP) is a policy that has life insurance coverage and investment components. Most policies contain various packaged funds with diversified risks for consumers to choose from according to their risk appetite. These respective funds would have various sub-funds in stocks, bonds, and more. Premiums paid by a consumer would be used to pay for units in the sub-fund of their choice. Some allow consumers to choose their own sub-funds, while others, like Great Eastern’s GREAT Series 10, have pre-allocated packaged funds for consumers to pick. When needed, some of these units purchased may be sold to pay for other charges, such as management charge fees. The management charge fee is charged monthly by...
Read the full article
By ValueChampion
We distill sprawling marketplaces—for insurance, credit cards, bank accounts, and more—down to choices that represent a sweet spot for value—as in offering the features, returns, or experience we think you need for the smallest outlay. We ask: Is the return on a particular purchase or decision worth the cost or risk of that option, and how does the choice stack up against other options?

Your email address will not be published.


Your Email Address will not be published

Read More Articles
More from thefinance