What Is Investment-Linked Policy ?

Some people asked me what is "investment-linked" plan?

Well, I try to share with you in the simplest term.

An investment-linked plan is actually a life insurance plan that combines investment and protection.

The premiums that you contribute provide you not only with life insurance cover but part of the premiums will also be invested in specific or selected investment funds of your choice. You, as a policyholder, can choose how to allocate your insurance premiums towards protection and investment.

The insurance coverage provided would include death benefit, disability.

The investment fund is divided into units of equal value. The prices of these units are published daily in the newspaper for you to track the value of your investment. In the case of NTUC INCOME, you can view the prices [click this webpage]

Comparing with traditional life insurance policy, investment-linked plan has the following unique features :-

[1]you are given the flexibility to choose your own level of protection and investment

[2]you can vary the amount of your premium payments or coverage according to your changing financial circumstances

[3]you can choose from a wide variety of funds to invest,
depending on the level of risk that you are comfortable with.

[4]investment in growth or equity-related funds may give higher returns than traditional life insurance plans over the long term. However, you have to bear in mind that higher returns come with greater risk.

As it is today, I observe that more people are putting their money in an investment-linked plan compared to the traditional life insurance policy.

If you are undecided which is the best option, you are welcome to drop me a note and I shall be more than happy to walk through with you on the benefits of investment-linked plan vis-a-vis traditional life insurance plan.