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Investment-Linked

Want to have better control over your investment and enjoy insurance protection at the same time? You can have the best of both worlds with an Investment-linked plan.

What is a Investment-Linked plan?
An ILP is one that allows the insured the opportunity to directly participate in the funds managed by the insurer. At the same time, he will enjoy insurance coverage. It is important to note that the investment risks of the plan are borne directly by the insured.

The investment portfolio is managed by professional fund managers in accordance with the objectives of the fund. Some types of funds in the investment portfolio include equity funds, cash funds and bond funds.

The premium paid by the insured is divided into components such as policy fees, mortality charges, investment charges, etc. The portion set aside for investment is used to purchase 'units' in the chosen fund(s).

Units are purchased at the offer price and are sold at the bid price. The difference between the 2 prices is known as the bid-offer spread. This difference is used to cover the plan's expenses.

The fund value and death benefit of an ILP is defined as follows:
  • The fund value of an Investment-linked plan is the value of units under the plan at bid price.
  • The death benefit for a single-premium ILP is a percentage of the single premium or the value of the units at bid price (whichever is higher).
  • The death benefit for a regular-premium ILP is usually the sum assured plus the fund value of the plan.
The insured has a high degree of control with an ILP due to its flexibility. For instance, if the insurer offers more than one fund, the insured can switch his investment from one fund to the other. He can also top-up his premiums and take premium holidays.
Uses of Investment-Linked plans
Investment-linked plans are useful in meeting the following needs:
  • To cater to those who want a financial instrument that can give high potential yield and insurance coverage.
  • To provide an option to those who are keen on the share market but lack the funds for diversification.
  • To assist those who want to invest but lack the expertise or time to monitor market movements.
Our Investment-Linked Plans
 Asia Capital Builder
 Asia FlexiBuilder
 Asia Wealth Builder
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