Hi, would like to hear some advice about getting an ILP? - Seedly
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Investment Linked Policies (ILP)


Asked 2w ago

Hi, would like to hear some advice about getting an ILP?

I am currently 20 years old, going to be 21yo next year and was wondering if an ILP would be great for me. The guaranteed assured sum is 100k and it covers 53 types of diseases. I would like to know what should I think about before signing this policy and whether or not it's a great policy. Considering that I do not want to go through the trouble of picking stocks to invest.


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It looks like you are getting an investment-linked policy for life insurance protection and some invested cash value. In this situation, you must know that you premium will be used to pay for insurance coverage, investment cash value, as well as for the distribution cost.

More Details: What is Distribution Cost in Insurance

In the long run, you will need to assess the cost of the policy, as well as the cost of insurance over time. This is because most investment-linked policies doesn't charge a flat insurance rate.

Life Insurance Coverage

If you are looking into income protection, then you may wish to consider a term insurance policy or a whole life insurance policy. I will include some links to help you understand each type of policies better.

More Details:

What is a Term Insurance Policy

What is a Participating Whole Life Insurance Singapore

Investment and Wealth Accumulation

On the other hand, if your intention is to invest and grow your wealth, then you shouldn't be overpaying for insurance charges and coverage that you do not need.

In this situation, you may wish to consider a pure investment-linked policy with minimal insurance charges. This is with the purpose of ensuring that 100% of your premium is invested from day 1. Otherwise, opportunity cost is wasted year after year.

I share quality content on estate planning and financial planning here.

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