Fundsmith equity fund

What makes a good Investment Linked Policy?

The main objective of any Investment Linked Policy should be for wealth accumulation through dollar cost averaging. By investing regularly over a longer period of time, you ride out volatility to achieve long-term market growth in your investment plan.

There are mainly 2 types of Investment Linked Policy (ILP) in the market focusing on:

High Wealth Accumulation – Investment Linked Policies (ILP) in this category have a high initial capital boost to buffer for market volatility (initial negative market conditions) or enhance returns (initial positive market condition) of your investment plan. However, the boost will be negated due to high yearly product charges. Withdrawal and encashment are usually heavily penalized which reduces your returns in your investment plan.

High Insurance Coverage – Investment Linked Policies (ILP) in this category allow riders to cover Critical Illness, Early Critical Illness, and Total Permanent Disability. The coverage for Death and Total Permanent Disability is also significantly higher. However, insurance charges and mortality charges will start to cause a reduction in your financial returns at the later life stages. Hence, options to remove insurance coverage and focus on investment returns will be an excellent feature.

Read about: How much life insurance coverage do you need? (Updated)

Read more: How pre-existing medical conditions can affect your insurance application

The Best Investment Linked Policies (ILP) for Coverage and Wealth Accumulation

The investment linked policies are hand-picked due to their product features and unique selling points.

Our criteria for picking the best Investment Linked Policies (ILP) are as of below:

Flexibility and range of available sub-unit trust funds

Options for removing protection coverage

Policy charges on the Investment Linked Policy (ILP)

Available protection coverages

Unique product features

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