The Dark Side of Investment Linked Policy (ILP)
In relation to my previous article “My NTUC Income Life Insurance Policies”, a member requested for my opinion on investment linked policy (ILP). He also wrote that the investment linked policy that he had bought was not profitable. Is investment linked policy really that bad and is it worth your time and money?
In this article, I am going share my candid views on investment linked policy. Readers would know that I don’t mince my words, so I am going to pull no punches.
For a period of time, investment linked policy used to sell like hotcakes in Singapore because it has been marketed as a unique financial product that offers potentially high returns and insurance coverage. The commission fees for investment linked policy are usually very lucrative. Thus, obviously insurance agents would attempt to sell this type of insurance product in a bid to make more commission fees. But in my opinion, this is one of the worst insurance products for consumers and one should avoid buying it unless he is 100% sure of what he is buying into.
As a matter of fact, I have examined this topic before in 2015 (Frightening Truth about Investment Linked …