INVESTMENT-LINKED

An investment-linked insurance plan is a life insurance that combines investment and protection. Your premiums provide not only a life insurance cover, but part of the premiums will also be invested in specific investment funds of your choice. You get to choose how to allocate your insurance premiums towards protection and investment.


WHY SHOULD I BUY INVESTMENT-LINKED INSURANCE

  • You want the flexibility to choose your own level of protection and investment.
  • You wish to vary the amount of your premium payments or coverage based on your own personal financial situation.
  • You have the flexibility to choose the type of funds based on your risk aptitude.
  • You want a savings plan to maintain your standard of living after retirement.

CHOOSING A PLAN

When it comes to picking the right plan, always:

  • Consider the amount you wish or can invest in the plan, either in single or regular-premium plans.
  • Remember to also consider the types of funds and the level of protection you need.
  • Evaluate your options carefully to find the right plan with the right fund to suit your needs.

BASIC TYPE OF PLANS

SINGLE-PREMIUM PLAN

  • A single premium-plan features a single lump-sum premium payment, so you don’t have to worry about making regular premium payments, and worrying about lapsing.
  • Features a life insurance policy with a death or total permanent disability cover of around 125% of your lump-sum investment.
  • Benefit payments will be to the sum assured or the value of the investment units at the time of claim, whichever is higher.
  • Allows you to immediately invest more to generate returns.

REGULAR-PREMIUM PLAN

  • The regular-premium plan is a more suitable plan for you if you don’t want to invest a large sum at the start of the plan.
  • Gives you the flexibility to increase your premiums and coverage when your finances improve in the future which are paid either monthly, quarterly, semi-annually or annually.
  • The basic insurance coverage, in the event of death or total permanent disability, is usually a multiple of the annual premium.
  • The benefit payment will be the total of sum assured plus the value of the investment units.

UNDERSTANDING THE RISK

Investment-linked plans, like other types of investments, are exposed to investment risk. The unit price of an investment fund (managed by the insurance company) is linked to the total value of the plan, which fluctuates with the movements in the unit price. You may realise a gain or loss when you sell your units, and may even get less than what you invested. Past-performance of an investment-linked fund's track record is only a guide to future performance.

WHAT YOU NEED TO REMEMBER ABOUT YOUR INVESTMENT-LINKED PLAN

  • Before putting your money in an investment-linked plan, carefully consider the risks you are willing and able to take.
  • Make sure you fully understand the risks involved and be prepared to have your money tied-up for a certain period of time.
  • You can get professional advice from your insurance company or your agent on the risks and benefits of a particular investment-linked insurance plan.
  • Read carefully all the information provided. Don’t hesitate to ask for an explanation of any terms if necessary.
  • There is a 15-day cooling-off period after you’ve signed for the investment-linked plan. If you decide to cancel your plan within this 15-day period, the insurance company will refund in full any fees and charges that you have paid. However, the amount refunded to you may be more or less than what you have paid, depending on the price of the units at the time of cancellation.