Balancing your finances on a tight budget?
You do want to invest to grow your future wealth, yet getting insurance coverage is an unavoidable cost. Need a plan that allows you to cash out on your investment gains without affecting your insurance coverage?
There has to be something that fits your budget, gets you insurance coverage and allows you to grow your wealth according to the changing market conditions.
Start investing with unlimited upsides to your investment returns and get insurance coverage from as low as S$6.77 daily.
Time to skip that daily cuppa and build up your long-term investment portfolio for a better future!
Get access and stay protected against Death, Total & Permanent Disability, Terminal Illness, Critical Illness and Early Critical Illness.
Even better, get provided against multiple and recurring instances of Critical Illness and Early Critical Illness!
Get high insurance coverage, potential long-term growth AND passive income!
Monitor your investment returns and insurance coverages all in one single plan, instead of having to keep track of individual plans.
Start investing with unlimited upsides to your investment returns and get insurance coverage from as low as S$6.77 daily.
Time to skip that daily cuppa and build up your long-term investment portfolio for a better future!
Get access and stay protected against Death, Total & Permanent Disability, Terminal Illness, Critical Illness and Early Critical Illness.
Even better, get provided against multiple and recurring instances of Critical Illness and Early Critical Illness!
Get high insurance coverage, potential long-term growth AND passive income!
Monitor your investment returns and insurance coverages all in one single plan, instead of having to keep track of individual plans.
You get investment returns based on the market performance of your allocated portfolio, based on the risk you are willing to take. Choose from a diversified basket of equities, bonds, REITS or even alternative investments such as commodities.
Feel that you need more coverage? Add on the insurance coverage you need or simply reduce or remove them when you want to further grow your wealth.
All in a single plan with the flexibility to top-up additional funds or withdraw during rainy days. Investing and keeping yourself protected has never been easier!
Receive a steady stream of monthly income when you invest in a basket of dividend-paying blue chips equity funds.
Choose to cash out your dividend for spending, or reinvest for potentially higher returns.
Stay invested in the stock market via a diversified basket of equity and bond funds, instead of timing the stock market.
Better yet, your investment-linked policy allows you to invest monthly to enjoy dollar-cost averaging and top up additional savings should you wish to.
Enjoy the option to reduce your insurance coverage at a later life stage to enhance the return on your investment portfolio.
Alternatively, you may seek options to withdraw your investment funds for other cash needs.
Receive a steady stream of monthly income when you invest in a basket of dividend-paying blue chips equity funds.
Choose to cash out your dividend for spending, or reinvest for potentially higher returns.
Stay invested in the stock market via a diversified basket of equity and bond funds, instead of timing the stock market.
Better yet, your investment-linked policy allows you to invest monthly to enjoy dollar-cost averaging and top up additional savings should you wish to.
Enjoy the option to reduce your insurance coverage at a later life stage to enhance the return on your investment portfolio.
Alternatively, you may seek options to withdraw your investment funds for other cash needs.
The average long-term returns of the S&P 500 is around 10% p.a (from inception in 1957 through 2021). This means that an ILP with 100% allocation in the US equity market should generate average returns of at least 8% p.a (dips and peak smoothed).
Compared to fixed deposits and savings which typically range from 1-2% p.a, the additional returns from an Investment-linked policy can be significant when compounded over a period of time.
Interestguru.sg is not affiliated with any single insurance company and our advisors work to understand your insurance and financial needs. Our advisors may earn remuneration/ commission only if a suitable product is taken up by you.
Drop us a message and understand how an Investment Linked Policy can help you to achieve your life goals. We guarantee that our proposals are customised accordingly to your health and financial needs while staying within your budget.
In general, an Investment-Linked Policy(ILP) would be a good fit if you are looking for unlimited upsides in your investment portfolio while accepting volatility due to financial market changes.
Unless in the event of death, in which 101% or 105% of the premium paid is guaranteed, an ILP has to reach a projected number of years until the policy breaks even. This means that you are bound to incur a loss if you need to surrender the policy early or urgently during a market downturn.
At later life stages, you can do a full (termination of policy) or partial withdrawal on your cash value. You may have the option to reduce some or all of the riders on your ILP to let the policy increase its wealth accumulation potential.
Depending on your health and insurance shortfall, accelerated riders such as the following can be added:
Do note that accelerated rider(s) reduce the sum assured of your death benefit payout. Some ILPs may also have “additional” riders that do not reduce your death benefit or policy investment cash value in the event of a claim.
For more comprehensive insurance coverage, look for ILPs with riders that pay out for multiple instances of ECI or CI, as well as progressive payout if your ECI advances to a CI.
A good Investment-Linked Policy should balance your insurance needs while providing unit trust funds that provide above-average returns over inflation in the long run. In general, paying premiums for a shorter period of years allows for higher financial returns.
If your time horizon allows for a longer period of paying insurance premiums, you can expect higher insurance coverage, while letting dollar cost averaging ensure your wealth accumulates in a basket of equities.
A single premium (one-time payment) only requires a single lump sum of insurance premium to be paid for the investment-linked policy The policy will typically stay in force until the plan is surrendered for its cash value or the demise of the insured party.
Single premium investment-linked policies usually come with GIO (Guaranteed issuance option). This means the policy will be accepted by the insurance company, regardless of the insured party’s health condition.
These types of ILPs are ideal for those in their mid-40s to 60s that has accumulated a sizeable sum of cash or cash equivalents, as 100% of the premiums placed start generating investment returns or dividends from policy inception.
The policy allows unlimited upsides on the premium placed or regular dividend payout depending on the policy owner’s preferences. At the demise of the insured, 101% or 105% of the premium paid is guaranteed, with minimally downside financial risk.
An investment-Linked Policy (ILP) with a limited premium term (10-15 years) would be ideal if you are in your mid-30s to 40s. With a higher budget and affordability towards funding their ILP, a limited premium term policy may allow your future cash value to catch up with those that started earlier with a lower amount.
You can expect the insurance coverage offered by a limited premium ILP to be lower than a lifetime premium ILP. However, as you should have taken up some other life insurance policies in your 20s, the ILP coverage only serves to cover the specific shortfalls in your life coverage.
with a strong commitment to riding out the next downturn in the economical cycle.
Starting a lifetime premium Investment-Linked Policy (ILP) in your mid-20s or early-30s ensures that you get the highest coverage and long-term wealth accumulation due to compounding.
The premium payable would be a lower personal cost, as your salary increases. You would also get a decent amount of insurance coverage via riders for ECI, CI, TPD and Death. In your late 40s or early 50s, you may need to supplement your coverage with a term life to cover any life insurance shortfall.
If your health allows, you may be able to remove the insurance riders in your late 60s and convert the ILP into an investment portfolio with minimal insurance charges.
A portfolio fully invested in equities can take advantage of economical cycles and expect 6-8% annual returns in the long run. This would work for those with a long-term horizon and is comfortable to ride out the downs via continual investing when the financial market is performing badly via dollar cost averaging
On the extreme end, a conservative portfolio fully invested in government bonds and/ or blue chip stocks can expect 2.5-3% annual dividends via payout monthly, quarterly or yearly. This allows your principal to keep up with inflation while ensuring your money is secured in the event of death.
In either scenario, you may draw down from the cash value in your ILP in the event of unforseen needs,
An ILP seeks to capture the long-term returns of the financial market, based on valuation, earnings, and potential growth on a basket of selected equities. It is not a short-term financial product akin to investing in a single stock, cryptocurrency or NFT.
It is typically designed to provide an above-average return compared to inflation via dollar cost averaging. When the financial market is down, you can expect to buy more units or “shares” in your portfolio. At the same time, you get lesser shares for the month, as valuation goes up when the financial market is in a bull run.
Currently, all major insurance companies in Singapore offer different types of Investment-Linked Policies to suit your life insurance and wealth needs.
InterestGuru.sg highlights a list of ILPs across the various insurance companies for flexibility, unique selling points and affordability.
This list is not ranked according to any preferences. Click on any ILP below to learn more about the specific policy details and features.
Drop us a message and let an InterestGuru.sg partnered advisor answer any questions you may have.
Remember, there is no obligation to take up any proposal nor is hard selling allowed for the benefit of our portal users.
