5 things you need to know about investment-linked plans in Singapore
                     5 Things You Need To Know About Investment-Linked Plans 
In Singapore 
 
When discussing insurance and/or investment options in Singapore, you might have come across the 
concept of an investment-linked plan (ILP). An investment-linked plan is a hybrid product that offers 
you the potential of earning from investments while also receiving coverage from insurance.  
In an investment-linked plan, part of the premiums that you pay is used to purchase units in sub-funds. 
The insurance component may either be bought through a sale of these invested units or from a part of 
the premium that has been paid.  
If you are new to the concept of an investment-linked plan, this article is just for you. Read on to 
discover 5 things you need to know about this hybrid insurance investment plan.  
 
 
1. You can opt for either a single or regular premium plan 
When you opt to buy an investment-linked plan, you will get to choose between a single, lump sum 
premium payment or regular premium payments. This way, you can opt for the investment-linked plan 
that fits your needs. For instance, if you would rather make your investment in your 20s before you 
settle down and have a family, you might want to consider opting for the single premium plan so that 
you complete your payment before other responsibilities in life set in.  
 
2. There are fees to be paid to the insurer  
It is important to keep in mind that buying an investment-linked plan means you will pay the insurer a 
certain amount of fees for their work. For instance, you may need to pay a fund management charge, 
withdrawal charge, and so on. Do make sure to compare these fees between insurance companies and 
choose the provider who levies the most reasonable charges.  
3. You can change your sub-funds  
It is mistakenly believed that once sub-funds are chosen, they cannot be changed. However, insurance 
companies do allow you to change the sub-funds in your investment-linked plan. In fact, insurance 
providers understand that you have evolving needs and may want to make changes to the diversification 
of your portfolio. To this end, they allow you to switch between funds, sometimes free of charge.  
 
 
4. The insurer offers assistance in picking and tracking funds 
Insurance companies do understand that you may need help with your investment-linked plan. As a 
result, you can expect end-to-end assistance in managing your portfolio. Funds are selected and put 
together to create a portfolio that matches your risk appetite. Apart from this, insurance companies are 
also known to send their customers regular updates on the market and frequent commentaries on their 
own portfolio.  
 
5. You can enhance the benefits of your plan  
Just like many other insurance products, an investment-linked plan too can be enhanced with riders. 
You might want to look at getting a rider that waives your premiums if you get diagnosed with a critical 
illness or total permanent disability. Make sure to ask your insurer for a full list of the riders available.  
Do speak to a financial consultant for help in selecting an investment-linked insurance plan.