Savings and Investments

Overview of life insurance products for savings and investments

 

Investment-linked Insurance Plan With this insurance policy, your premiums are used to purchase insurance protection and investment units in a managed fund. Like a unit trust, your money is pooled with that of other investors and invested in short and long-term investments of your choice.
 
The price of your units depends on how the investments in the fund perform. What it pays out depends on the price of the units at the time you cash it in or die. Most ILPs are also sold with a death benefit, ensuring that your spouse and child’s standard of living will not be adversely affected should you pass on.
 
Although such investments may be risky as they offer varying degrees of rewards and risks, it may be suitable for those who may like a higher potential for investment returns. It also provides you with an additional benefit – a peace of mind should you meet with mishap.
 
To find out more about Investment-linked Insurance Plans, click here.
Endowment Policy A valuable tool in managing your money is an endowment policy as it encourages disciplined savings via premiums paid on a regular basis.
 
An endowment policy is with a specific maturity date. You can choose a policy term such that it matures when your child turns 18 or 21, in time for his or her tertiary education needs.
 
It typically gives a stable higher than bank interest rates return over the long term. To benefit from the policy, you should ensure that you pay your premiums faithfully over the term of the policy. It is not advisable to terminate the policy prematurely as the surrender value payable to you may be less than the total premiums you have contributed.