Various life insurance policies are available presently. If your approach is through an agent, then you are offered an Investment linked policy. According to Yong Wai Meng, always choose an Investment-linked policy as this is your first preference before owning a life insurance policy.
The Investment Linked Policy is a life insurance policy, having a combined policy of protection as well as investment. Yong Wai Meng always advice client to choose the proper Investment Linked Policy will help you get many benefits.
The following are some of the benefits and reasons to own the investment-linked policy.
- Transparency: The investment-linked policy acknowledges all the premium allocations. This is also called transparent policy. The details where the premium is utilized can be known. Policy holders receive a statement which lists clearly all your allocation, insurance charges, fund price and your investment value in a periodic statement. Some companies send the report quarterly, whereas other companies send this annually.
- Low Insurance Charges: Investment-linked policy calculates the insurance charges based on your age. In case you are young, the insurance premium is very cheap. They use the mortality table and follow the table of insurance charges. This means there is a facility for you to purchase a higher coverage by giving a low premium, in case you are young. In such cases the premium amount is lower than the normal premium amount.
- Flexibility: You can customize your Investment-linked policy whenever you like and however you need it. You can top up your investments, make withdrawals and switch funds. Investment-linked policy is flexible and vary your insurance coverage levels and allow premium holidays, during which period your insurance premiums can be temporarily stopped without terminating your plan.
- Diversification: The investment-linked funds offer your approach to different portfolios who diversify your investment and protects you against the risk.
- Potential Returns: Having the investment-linked policy, you can earn higher potential returns other than traditional whole life and endowment plans.
- Guaranteed Insurability: You can enjoy the guaranteed insurability by holding the investment-linked policy, regardless of changes in your health status.
- The benefits: The investment-linked policy covers all benefits such as health card facilities, accidental benefit, living assurance benefit and illness benefit too. It is the best policy where you can enjoy all the advantages that you need.
- Control the strategy of investment: You have all rights to control any kind of risk that you might have to bear for the investment. You have the facility to choose strategy, fund and portfolio allocation according to your preferences. In case you are doubtful about the investment risk, here is a facility to pay all the premium for a fund that gives you a fixed income, where you can reduce your risk factor.
Factors to be considered before purchasing the investment-linked policy
- Insurance Protection Needs: This determines the type of insurance coverage you should take.
- Risk Profile: This profile refers to your risk, which you can bear.
- Investment Objective: It is important for you to choose the fund which commensurates with your risk profile and investment objective.
Is Investment-Linked Policy suitable for old people?
The Investment-linked policy is suitable only for those who’s financial status is good and who can sustain premium payments. Yong Wai Meng opinion is for people who’s financial status is not good, they are not suited for this Investment Linked Policy.