What is ilas insurance?

An investment-linked assurance scheme (ILAS) is a long-term investment-cum-life insurance product. With an ILAS product, you are buying a life insurance policy, not the underlying assets.

What are linked policies?

Linked insurance policies are the insurance plans that offer an insurance cover along with returns as dependent on the performance of the market. The most popular example of a linked insurance plan is Unit Linked Insurance Plan or ULIP plan.

What is investment-linked?

An investment-linked plan is a life insurance plan that combines investment and protection. The premiums that you pay provide you not only with life insurance cover but part of the premiums will also be invested in specific investment funds of your choice.

How does unit linked insurance work?

How ULIPs Work. The insurer pools money from all the policyholders and invests the same in the funds chosen by them. Once the money is invested, the total corpus is divided into ‘units’ with a certain face value. Each investor is then allocated ‘Units’ in proportion to the invested amount.

What is the maximum sum assured on death?

In any case of any eventuality, like death, the sum assured is the amount that is paid to the beneficiary. 3. The sum assured depends upon the income of the person and typically a maximum of up to 10 times the annual income is allowed as the sum assured.

Is it worth to buy investment-linked insurance?

Some consumers value ILPs because of their flexibility. You can change your investments by switching sub-funds when your financial needs change. In addition, you may also top up your investments and make partial withdrawals.

Can I withdraw AIA investment?

Full withdrawal is allowed if you are 55 years old, or pass away (your next of kin can apply for withdrawal) or leave Malaysia permanently.

Is ULIP a good investment?

A ULIP is a good long-term investment that also offers reliable protection to you and your loved ones. It is also flexible and gives you an opportunity to satisfy your risk appetite in a safe way. However, it is always a good idea to consult an expert before investing.

What are the benefits of ULIP?

Top 6 flexible benefits that ULIPs offer

  • Flexible investment options. ULIPs offer a whole host of high, medium and low-risk investment options via different fund available under the same plan.
  • Transparency.
  • Liquidity when you need it.
  • Disciplined and regular savings.
  • Tax benefits.
  • Spread of risk.

What is the difference between sum assured and death benefit?

Sum assured is the money that the insurer pays in case the insured event takes place. So, in the case of a term policy on death of the policyholder, the beneficiary gets the sum assured. Under a term policy there is no difference between the death benefit and the sum assured.

What is the difference between sum assured and maturity amount?

In other words, sum assured is the guaranteed amount the policyholder will receive. This is also known as the cover or the coverage amount and is the total amount for which an individual is insured. Maturity value is the amount the insurance company has to pay an individual when the policy matures.

Why is ILP not good?

The reason why an ILP can offer flexibility in premium continuity and insurance coverage, and potentially higher returns, is also the same reason behind its largest disadvantage – the returns from your ILP are not guaranteed. This is not to say that you will definitely lose your capital when you purchase an ILP.

What is an ILAS policy?

An ILAS is a life insurance policy with investment elements that provides both insurance protection and investment options, usually funds. Its key features and risks include: Investment risk: ILAS’s policy value is subject to investment risks and market fluctuations. The investment return can fluctuate significantly or even become losses.

What is an investment-linked assurance scheme (ILAS)?

An investment-linked assurance scheme (ILAS) has the following typical features: it provides the policyholder with life insurance cover plus investment options (usually funds); its policy value is determined by the insurance company based on the performance of the “underlying or reference funds*”; and

Who owns the underlying assets of an ILAS product?

the insurance company owns the underlying assets of an ILAS product and policyholders do not; the policyholders have the ownership of the policy.

What is the death benefit of an ILAS policy?

Some ILAS policies may only provide minimal death benefit (eg 105% of account value which may be linked to the investment options the policyholders selected). The death benefit payable may be significantly less than the premiums paid and may not be sufficient for policyholders’ individual needs.