A good investment linked policy has the following features:
a) offers term insurance and critical illness coverage at guaranteed rates for fixed or decreasing coverage
b) allows savings to be invested in an equity or money market fund with an upfront charge of 2% or less
c) have an annual fund management fee of not more than 1% (for equity) or 0.5% (for money market fund)
d) have a fixed upfront fee and a monthly administration fee
This product to be explained in a brochure that can be downloaded from the website. The product is kept simple and is easy to understand. It can be bought over the counter or through the internet.
This policy allows the consumer to meet its protection and savings needs in an insurance policy that offers fair, competitive and transparent charges.
I am just curious if such ILP really exist from an insurance company.
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b) Equity fund at below 2% bid-offer and
c) Annual fee of less than 1%.
DIY via fundsupermart or buying ETF direct seems to be the only option.
It is easy for an insurance company to offer an ILP that is invested in ETF and add a term policy at level premium. They can provide the convenience to policyholders and get a lot of business. This policy does not need to be sold by an agent. It can be bought by educated customers.
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