Common misconceptions about Investment-Linked Insurance policies

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Investment-linked insurance plans (ILPs) are policies that have life insurance coverage and investment components. While some see ILPs as a financial product that offers the 'best of both worlds' benefits to policyholders, others are a little warier, believing that they'd end up better off if they were to keep their wealth accumulation goals distinct from insurance plans. Unfortunately for the...

100 per cent of Premium used for Insurer Expense; 0 per cent for sub-fund purchase70 per cent of Premium used for Insurer Expense; 30 per cent for sub-fund purchase50 per cent of Premium used for Insurer Expense; 50 per cent for sub-fund purchase0 per cent of Premium used for Insurer Expense; 100 per cent for sub-fund purchase0 per cent of Premium used for Insurer Expense; 100 per cent for sub-fund purchaseRemember the insurance portion of your ILP? Most ILPs will take a cut from your premiums...

If this aspect of ILPs puts you off, don't worry. Certain ILPs allow you to invest 100 per cent of your premiums without any insurance charges at all – while still offering you coverage against death and terminal illness.Contrary to popular beliefs, measuring the performance of your ILP investment isn’t a challenge at all. For instance: with Tiq Invest, you'll receive fund reports of each of your ILP sub-fund on both a semi-annual and annual basis.

With Tiq Invest, for example, you never have to worry about an economic downturn wiping out the entirety of your insurance coverage because your loved ones are still entitled to a lump sum payment at the higher of one) 105 per cent of net premiums paid or two) Account value. So if you're ready to take on an ILP that truly offers the 'best of both worlds' – without worrying about the typical, associated cons – then definitely check out Tiq Invest.

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you.Full details of the policy terms and conditions can be found in the policy contract.

 

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