Best ILP in singapore

2 weeks ago

What makes a good Investment Linked Policy?

The main objective of any Investment Linked Policy should be for wealth accumulation through dollar cost averaging. By investing regularly over a longer period of time, you ride out volatility to achieve long-term market growth in your investment plan.

There are mainly 2 types of Investment Linked Policy (ILP) in the market focusing on:

High Wealth Accumulation – Investment Linked Policies (ILP) in this category have a high initial capital boost to buffer for market volatility (initial negative market conditions) or enhance returns (initial positive market condition) of your investment plan. However, the boost will be negated due to high yearly product charges. Withdrawal and encashment are usually heavily penalized which reduces your returns in your investment plan.
High Insurance Coverage – Investment Linked Policies (ILP) in this category allow riders to cover Critical Illness, Early Critical Illness, and Total Permanent Disability. The coverage for Death and Total Permanent Disability is also significantly higher. However, insurance charges and mortality charges will start to cause a reduction in your financial returns at the later life stages. Hence, options to remove insurance coverage and focus on investment returns will be an excellent feature.

Read about: How much life insurance coverage do you need? (Updated)

Read more: How pre-existing medical conditions can affect your insurance application

The Best Investment Linked Policies (ILP) for Coverage and Wealth Accumulation

The investment linked policies are hand-picked due to their product features and unique selling points.

Our criteria for picking the best Investment Linked Policies (ILP) are as of below:

Flexibility and range of available sub-unit trust funds
Options for removing protection coverage
Policy charges on the Investment Linked Policy (ILP)
Available protection coverages
Unique product features

Get Quote: Compare and get your Invesment Linked Policies quotes across different insurers

Note: The Investment Linked Policies (ILP) listed below are not ranked in any priority. Expect a break-even period of 10 to 15 years for all Investment Linked Policies (ILP) as most of the premiums paid in the initial years are used to pay for policy charges/admin fees and insurance charges.

Read About: How does Investment Linked Policy work?

Read About: Is an Investment Linked Policy right for me?

Best Investment Linked Policy (ILP) for Policy Charges – FWD Invest First Summit

FWD Invest First Summit, one of the newest Investment Linked Policy (ILP) offered by FWD Insurance whom recently just entered the life insurance market.

What we like about FWD Invest First Summit is it’s relatively low minimum regular premium ($300/month) to kick start your wealth accumulation journey. You do not need a huge amount to start investing, do yourself a favor, start investing in small amount as soon as possible to kick start your wealth accumulation journey!

Another thing we love about FWD Invest First Summit is their Booster Bonus. Instead of providing a one-off welcome bonus like what most insurers does, FWD Invest First Summit is providing booster bonus for the first 3 years of your annual premium, up to a whopping 55% of booster bonus per annum.

FWD Invest First Summit offers 3 forms of bonuses to kickstart your Investment plan. Receive booster bonus of up to 55% of your first-year premium for the first 3 years to enhance your returns when markets are rising, or shield your portfolio when markets are falling.

Perpetual bonus and Loyalty Bonus will also be credited during and after the minimum investment period, which in turns, helps to pay off the policy charges for the Investment Linked Policy (ILP)

What we like about FWD Invest First Summit

3 years of Booster Bonus provided to shield your investment against market downturn
24 months premium holiday can be activated with no charges after the 2nd year
No premium shortfall charge from as early as the 10th year onwards. You can stop paying premiums with no penalty
Access to restricted funds such as FundSmith Equity Fund that are available to Accredited Investors only

Read about: FundSmith Equity Fund

What we don’t like about FWD Invest First Summit

Slightly higher policy charges, but charges can be cancelled off with 3 forms of bonuses paid to the plan

Read about: FWD Invest First Summit review

Additional product details: FWD Invest First Summit Marketing Brochure

Fees and Charges for FWD Invest First Summit

Account Maintenance charge: 3.95% per annum of initial units account during the minimum investment period, 0.7% per annum after the minimum investment period

Best Investment Linked Policy (ILP) for Coverage- Manulife ManuInvest Duo

Manulife ManuInvest Duo gives you the best of both world. This Investment Linked Policy (ILP) lets you choose a sum assured of up to 100x your annual premium of coverage against Death, Total and Permanent Disability, and Terminal Illness. Choose a Minimum Investment Period of 10, 15 or 20 years.

Premiums Payable Riders and Units Deducting Riders are available for add on to enhance insurance coverage for Early Critical Illness and Critical Illness as well as Premium Waiver Riders. Continue your investment linked plan with no further financial worries should the unforeseen happens, until policy termination.