Another insurance plan offered by your insurance agent friend? ILP? Endowment Plan? Hospitalization Plan? You might be wondering if what is offered is truly for you, or is your friend trying to “scam” you. I myself have met with many different financial advisors. I can confidently say, some are really fluff while some are actually really good at what they are doing. So today, I am here to debunk the myth which many Singaporeans are saying: You should NEVER buy an ILP.

What is an Investment-Linked Policy (ILP)?

Investment-Linked Policies (ILPs) are policies that have life insurance coverage and investment components. For the most part, the premiums you paid are used to pay for units in one or more sub-funds of your choice. Some of the units purchased are then sold to pay for insurance and other charges. While, the rest remains invested. Today, most ILP are wholly-investment. Previously, many…