Investment-Linked Policies: Understanding the Opportunities and Risks
The demand for investment-linked policies (ILPs) in Singapore has more than doubled in three years, even as complaints relating to alleged misrepresentation and inadequate disclosure continue to rise.
In this CNA article, Alex Lee, President of the Singapore Actuarial Society (SAS), shares insights into the factors driving demand for ILPs, including simplified sign-up processes and welcome bonuses.
Alex also highlights the importance of understanding the costs and commitments involved, including early termination charges and the implications of taking a premium holiday.
As Alex emphasises, consumers should first be clear about how much they can commit regularly, when they may need the money and what they are investing for. Only then should they consider whether an ILP is suitable for their needs, compared with alternatives such as investing directly in funds or separating protection from investment.
Read the full article by CNA:
https://www.channelnewsasia.com/singapore/ilp-investment-linked-policies-demand-complaint-6446421