Since ILP plans are long term, should students diversify into them to gain a head start or to instead separate investing and insurance?

Hi Chloe, I'm in the industry so I can humbly say a word or two.

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There are 2 types of ILPs, number 1 being those ILPs that have an investment and protection component, something I would never recommend anyone to get because fees can get pretty high. Number 2 are the 101% ILPs where all your premiums are invested into unit trusts (most ILPs invest in this vehicle).

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My advise is that if you're one who really couldn't care less about the market, don't want to open a broker or a robo and want someone to do it for you, then sure a 101% ILP is for you. But since you're here, I doubt you're so adverse to brokerages.

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As the adage goes, buy term and invest the rest. Buy a term plan for yourself and invest into ETFs and what not, because chances are, as a student you'd probably be caught up with work and not have time to check the market.

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tl;dr: 2 types of ILPs: Part insurance, part investment and 100% investment. Buy a 100% investment ILP if you so wish because buy term and invest the rest.

I would stay away from ILPs, too many fees, and illiquidity. Not to mention how inflexible it is, as students, we do not have regular incomes and could potentially lose our parttime jobs etc, i would not want to have to dig into my savings to keep up with the monthly payments