It's not an easy answer, because ILP by itself is a category of products. Saying that ILP is bad, is similar to saying "Stocks trading is bad", or "Options writing is bad", or "Buying insurance is a waste of money" Traditional ILP came about when people were unhappy with par fund returns of whole life policies, and they wanted more flexibility and control. Insurers then flip it around and gave people full flexibility. The biggest problem with that was that cost of insurance climbed over the years, and before you know it, people were actually left with a depleted account in their old age where they needed the coverage the most. More recently, you see a lot of ILP which is primarily an investment product but sold by insurers or financial advisory firms. Typically nicknamed 101ILP, they usually provide a death coverage of 101% of total premiums paid, or in other words, not much insurance coverage. In this sense, it's really not mixing investments with insurance. In this space of wealth based ILPs, you have AXA Pulsar, Manulife InvestReady Wealth, and Tokio Marine Atlas Wealth as the top 3 most popular ones. How it usually works is that you get an upfront bonus that may be paid in the first year, or up to a few years, but you have to commit to a time horizon. I will use Manulife InvestReady Wealth as an example because it's simpler to understand. All 3 illustrations are available online. https://www.manulife.com.sg/our-solutions/invest/investment-linked-plans/investready-wealth.html https://www.axa.com.sg/our-solutions/personal/savings-investments/pulsar https://www.tokiomarine.com/sg/en/personal/wealth/wealth-planning/tm-atlas-series/tm-atlas-wealth.html In the case of Manulife InvestReady, the illustrated example shows a choice of a 20-year plan where the annual premium is $12k. You get an upfront bonus unit of $7,200 (or roughly 60%). In the case of TM and AXA, they tend to give a bonus of up to 200% but spread over a few years. The trick you will see is the annual charge. Back to InvestReady, this means you start the account with $19,200 worth of investments. You have to pay a fee of 2.5% (made up of 0.7% and 1.8%) every year, for the first 10 years. After that, it will be a fee of 0.7% subsequently. A way to think about it, is that the upfront bonus units is used to offset the 2.5% paid over the subsequent years. If you were to run your numbers, in theory the additional bonus units might put you ahead of people who buy unit trusts directly. As for AXA and TM, they give much higher bonus units, because the fee charge per annum is also much higher, up to 7% per annum. So the balance point is if you believe that over the long run, investments are uptrending or not. If so, then bonus units help, since you frontload your profits. The biggest downside I see if you are locked in for the committed time period. If you surrender or withdraw before that, you are likely to lose a large chunk of it. To be fair, I think it's quite neutral versus directly investing in unit trusts. You can probably only say for sure on hindsight. You need to understand your objectives too, because even within the unit trust space, there are many pricing models, such as wrap accounts, non wrap, etc.