When is it a good time to buy ILP? What are the pros and cons for AIA Pro Lifetime Protector?

Insurance-Linked policies are investment plans that include life insurance coverage. They can be classified into two categories:

1) Traditional Investment-Linked Policy - your premiums goes into both investment and insurance plan.

2) Pure Investment-Linked Policy - your premium will be 100% invested into funds

We recommend that you keep investment and insurance separated. Thus, if you are interested in Insurance-Linked Plan, do consider a Pure Investment-Linked Plan over a traditional one.

AIA Pro Lifetime Protector is a flexible Investment-Linked Policy. It provides good coverage for death, disability, and multi-stage critical illness while also you to invest. It also provides flexibility as you can access you cash through partial withdrawal after the second year if needed. However, it has low surrender value in the initial years and as with all investment, returns are not guaranteed.

If you would like to find out more, do send us an enquiry and we will follow up with you.​​​

The best time to buy an investment-linked policy is when you know that the policy is able to help you achieve your needs or goals. Different investment-linked policies serve different purposes. Consequently, their advantages and disadvantages may or may not be of value.

In your example, AIA Pro Lifetime Protector's focus is on protection, while providing you with investment cash value. Some of its features include premium holiday, partial withdrawal, as well as the ability to make alternations to the policy after a stipulated period of time.

On other hand, there is investment cost associated with the policy, e.g. fund management fee. Furthermore, investmnet yields only non-guaranteed returns. As a result, you may suffer from a loss during an economic downturn.

To summarise, there is no one-size-fits-all answer for your question as different policies have different features. After we know your needs, we can do an in-depth evaluation of the policy to that end.

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