Why buy an Investment-Linked Insurance Plans In Singapore? While you are sleeping, your insurance premiums could be earning 10% or higher returns while riding the highs of an exotic emerging market fund. Without question, most of us would choose a more conservative fund for our insurance savings. The point is, your insurance premiums no longer have to sit in low interest earning funds for several decades. Insurers are linking premiums to higher returning savings accounts and investment products. One of the highest yielding insurance-linked products is the investment-linked insurance policy (ILP). The major difference between a regular insurance policy and an ILP is that you get to choose the underlying fund your insurance premiums will be invested in, and thus the level of risk and potential returns. When you buy an insurance policy, the insurer places your premiums in a fund, typically a conservative fund paying a modest interest rate. When you buy an ILP, your insurance premiums are used to purchase units in investment-linked sub-funds. The difference is, you can choose the investment fund. You may choose an Asian growth fund or a more conservative income fund. Your insurance policy returns are then based on the returns of the […]
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