4 misconceptions about investment-linked policies you must get rid of today

 



An investment linked policy (ILP) is a plan that provides the individual with life coverage along with investment component. Many individuals invest in ILPs as they offer them the best of both worlds.

However, some are a bit sceptical and prefer to keep their wealth accumulation goals distinct from their insurance plans. Unfortunately for these people, their scepticism may be holding them back from benefiting from one of the most powerful financial tools available in the market. Hence, to prevent you from losing out on the benefits that ILPs can provide, take a look at the 4 common misconceptions about ILPs.

●        You will be locked into a sub-fund

Besides providing basic insurance protection coverage, an investment linked policy (ILP) has an investment component. The premiums you paid are used to pay for one or more sub-funds of your choice, according to your risk appetite. However, one of the most common misconceptions is that people are unable to make changes to their fund portfolios if their chosen sub-funds failed to meet their investment targets or when they have a change in financial goals. This is not true! ILPs allow you to switch your choice of sub-funds when needed. Some ILPs allow unlimited fund switching at no charge while some will impose a ‘switching charge’ or limit the number of times you can switch for free...


READ MORE : 4 misconceptions about investment-linked policies you must get rid of today.


Comments

Post a Comment

Popular posts from this blog

3 Milestones of Life for Which You Might Want Term Insurance

Image
  Consistent with its name, term insurance covers you for a not really set in stone residency. At the point when you purchase this type of disaster protection plan, you select the term for which you need to be covered. The term can run pretty wide – driving safety net providers in Singapore are known to offer term protection plans from 10 years to more than 80 years. Be that as it may, how can one suitably choose the residency of inclusion? Definitely there should be some measuring stick? Truly, the solution to those inquiries might vary from one individual to another. The residency appropriate for one individual may not be reasonable for another. A ton of things become possibly the most important factor while choosing the term for which you need inclusion. You should keep your remarkable monetary necessities in context and ponder the number of wards you have, in addition to other things. You may likewise need the term intend to agree with specific achievements in your day t...
Read more

Tips That May Help With Retirement

Image
  We all want the best for our parents. They have taken care of us all our lives, and now it is time to return the favour. In a few years’ time, your parents may want to retire and this will mean they have to manage their expenses without consistent income anymore. To ensure they live out the rest of their life with peace of mind, you can help plan their retirement savings and insurance coverage. So, how can you do that? To help you get started in your parents’ retirement planning , we have listed 6 tips that can set you on the right track... READ MORE :  Tips That May Help With Retirement
Read more

5 Reasons to Plan for Retirement from an Early Age

Image
  Planning out finances should not be limited to just health insurance and property investment. Proper financial planning should also include retirement planning . You will eventually need to stop working. Without a steady source of income, you will have to find a way to get financially secure. This is where retirement planning comes in handy. Retirement planning provides enough income for an individual to live their life after retiring. It will also help you with medical emergencies, meet life goals, and be financially stable. Let us take a look at a few more reasons to plan for retirement at an early age. ·          Have a stress-free retirement: Retirement is a time for you to kick back and relax. You have been working hard all your life, and now with retirement, you have the time to go on vacation or pick up the hobbies you have wanted to.  The most important thing that comes out of a retirement plan is a stress-free life. This ...
Read more