Compare & Find The Best Investment-Linked Policies in Singapore
We partner with unbiased financial advisors to help you compare and find the best investment-linked plans (ILPs).
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What is an Investment-Linked Plan?
Imagine a future where you’re not just saving money but actively growing it, where your financial security is intertwined with the opportunity to make your dreams a reality. This is where an investment-linked plan (ILP) comes into play, a unique blend of insurance and investment that safeguards your loved ones while offering the potential for wealth accumulation. By channeling premiums into both protection and investment funds of your choice, ILPs empower you to tailor your financial journey by investing your money while protecting it at the same time.
Protection and Investment
ILPs combines the safety net of life insurance with the growth potential of investing in the market. This dual benefit means you're not just securing peace of mind for your family's future but also engaging in wealth accumulation that aligns with your risk appetite and financial goals.
Fund Selection
ILPs stand out for their fund flexibility, allowing you to choose where your money is invested. Whether you're inclined towards conservative bond funds, wish to explore the dynamism of equity markets, or prefer a balanced mix, ILPs give you the control to adjust your investment portfolio based on your changing life stages, risk tolerance, and financial objectives.
Top-Up or Withdraw Funds
ILPs are designed with life's fluidity in mind, offering the flexibility to manage your investments according to your financial situation. You have the option to inject additional funds into your investment component during prosperous times. Should you face unexpected financial needs, ILPs allow for partial withdrawals, providing a safety net that ensures your financial plan adapts to your life's ebb and flow.
Pros of Investment-Linked Plans
Tailored Growth
One of the most compelling advantages of investment-linked plans is their ability to align with your personal financial goals and risk tolerance. By allowing you to choose from a range of investment funds, ILPs enable you to sculpt a portfolio that mirrors your vision for the future, whether you're aiming for aggressive growth or seeking stability.
Transparency and Control
These plans offer a transparent structure where you can monitor your investments' performance and make informed decisions about fund allocations. This level of control and visibility empowers you to actively manage your financial growth and adjust strategies in alignment with market changes or personal circumstances.
Potential for Higher Returns
Compared to traditional policies that offer a fixed return, ILPs hold the potential for higher returns. While higher returns come with higher risks, ILPs provide the opportunity to benefit from market upswings, making them an attractive option for those looking to grow their wealth over the long term.
Cons of Investment-Linked Plans
Market Risks
The investment component of ILPs exposes them to market volatility, meaning the performance of your plan is directly tied to the fluctuations of the financial markets. This can lead to variable returns, where the possibility of achieving higher gains is counterbalanced by the risk of potential losses, especially in turbulent economic times.
Cost Considerations
ILPs often come with various charges, including management fees, insurance charges, and administrative costs, which can eat into your investment returns. These expenses, particularly in the early years of the policy, can significantly impact the cash value of your plan, making it crucial to understand the fee structure before committing.
Need for Active Management
The flexibility and potential benefits of ILPs come with a need for active management and a good understanding of investment principles. The responsibility to monitor and adjust your portfolio according to market conditions and personal circumstances demands a level of financial literacy and commitment, which a financial advisor is needed.
Who should get investment-linked plans?
The Financial Strategist
Individuals who relish in crafting and managing their financial blueprint with precision will find ILPs particularly appealing. These are the planners and visionaries who enjoy tailoring their investments to meet specific financial goals. They’re comfortable navigating market fluctuations and are adept at adjusting their strategies to optimise returns. For the Financial Strategist, the dynamic blend of protection and investment growth opportunities that ILPs offer aligns perfectly with their proactive approach to financial planning.
The Trusting Delegate
Individuals who may feel out of their depth with the intricacies of investing and prefer to leave the decision-making to the experts fit the Trusting Delegate profile perfectly. They trust in the expertise of professionals to navigate the market’s ups and downs, making strategic adjustments on their behalf. For the Trusting Delegate, ILPs offer a comforting blend of insurance coverage and investment potential, managed by someone who understands how to align their financial goals with market opportunities.
The Future Planner
This personality type is all about looking ahead, meticulously preparing for the long term with a keen eye on achieving financial security and prosperity. Future Planners are drawn to Investment-Linked Plans for their blend of protection and investment, viewing them as a cornerstone for a well-rounded financial strategy that spans decades. They’re not necessarily investment gurus but are highly motivated to ensure their and their family’s future is secure, leveraging ILPs to build wealth over time.
Best ILPs in Singapore
AIA Pro Achiever 3
Tokio Marine GoClassic
Manulife InvestReady III
Singlife Savvy Invest
Prudential PRUSelect Vantage
Great Eastern GREAT Wealth Advantage 3
HSBC Life Wealth Invest
How to apply for a comparison session?
Step 1
Submit a request for a comparison session with Life Insurance Singapore. Based on your request, we will match you with one of our MAS-licensed partners.
Step 2
Our partners will obtain quotations from the respective insurers and help you compare based on price, features, and suitability.
Step 3
Once you've found the perfect investment-linked plan, feel free to purchase it from a friend, directly from the insurer, or from our partners!
What is the difference between a unit trust and an ILP?
Is an endowment an ILP?
No, an endowment is not an ILP. While both endowment plans and ILPs are types of life insurance policies, they serve different purposes and have distinct characteristics. Endowment plans are primarily savings instruments with a guaranteed payout at maturity, often used for long-term financial goals like education or retirement. On the other hand, ILPs combine insurance coverage with investment opportunities, allowing policyholders to invest in a range of funds while also providing life protection. The investment component of an ILP introduces market risks and potential for higher returns compared to the guaranteed payouts of endowment plans.
Are ILPs worth it?
Whether ILPs are worth it depends on individual financial goals, risk tolerance, and investment preferences. ILPs offer the dual benefit of insurance coverage and investment growth potential, making them appealing for those seeking both protection and wealth accumulation. However, they come with risks, including market volatility and fees, which may not be suitable for everyone. It’s essential to carefully consider factors such as investment time horizon, financial objectives, and personal circumstances before deciding if an ILP aligns with your overall financial strategy. Consulting with a financial advisor can help determine if an ILP is the right choice for you.