Click here to understand more about Unit-Linked Products. Reasons to buy
Investment-Linked Product (ILP) as First Policy
- High
transparency on premium utilisation
- Very
low insurance charges during younger age.
- Unlike
traditional life insurance product, you may include many riders without
increasing the premium.
- Force
saving plan
- Premium
holiday
- Cash
value to pay all insurance charges
- Adjustable
insurance coverage in accordance with your need in different life stages.
- Withdrawal
flexibility
- May
have higher return but also higher risk.
- Risk
reduction through “dollar cost averaging” investment strategy.
Disadvantages of ILP:
- High
insurance charges during older age.
- Cash
value not predictable, comparing to a normal life insurance, subject to investment return and prevailing
marketing condition.
- Common misunderstanding
that it is very “worthwhile” as can include many riders without increasing the
premium. Actually all the charges will be deducted from the premium paid thus
reducing the “cash value” that is available for investment
Conclusion:-
ILP may
be the best product for younger working adult to start with a comprehensive
risk management planning. It is advisable to have a few policy throughout
different life stages to complement the earlier policy purchased.
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