You may think that ILPs are the same as other policies. So, you ignore them and save money for your retirement plan. You find that saving money with you is not effective. You end up spending it without noticing it.
The notorious reputation of investment linked insurance makes it worth investing in for retirees. This insurance is worth adding to your retirement plan. Boost your retirement funds by investing in the policy.
Understanding an Investment Link policy
An investment link policy or insurance is a policy with:
- life insurance coverage
- investment components
Your premiums will pay for units in one or more sub-funds. Some purchased units are sold to pay for the insurance and other charges. The rest stays invested. ILPs offer insurance protection in the event of:
- death
- permanent disability
Boost retirement funds with ILP
Add ILP to your investment portfolio to boost your retirement funds.
Achieve potentially higher returns
ILPs have potentially higher returns. They may also have a start-up bonus that acts like extra investment capital.
For example:
An ILP plan you choose comes with a start-up bonus of 64% of the annual premium in the first 2 years of investment. You can use it to purchase more investment units.
Gain control
You must consider an ILP for retirement when you want control over your:
- premiums
- future monthly retirement income
Choose your premium terms with an ILP, and the payout age.
For example:
You can choose a premium term that is between Invest Achiever.
An Investment Achiever lets the policyholder receive a monthly income after the premium payment term. It starts on the date of your choice. You can receive monthly payouts at the age of 50 if you are currently 30 years old and choose a premium payment term of 20 years. This is great if planning for an early retirement.
You can keep your investments rolling until you are ready to cash out the policy.
Enjoy flexibility
ILPs are flexible, contrary to the belief that they are rigidly structured. One benefit of Etiqa’s range of ILPs is the ability to switch. The funds can be switched at any time without charges.
This is beneficial when investing in a long term goal, such as retirement. Your investment period spans across different life stages.
You can rebalance your portfolio with free and unlimited fund switching. What you rebalance here are:
- when you like to meet your needs
- investment strategy
For example:
You can choose ILP sub-funds, which are more aggressive for possible higher returns if looking for:
- retirement funds
- wealth accumulation
Lower-risk funds focus on wealth protection, making this a good option for an approaching retirement.
Protect yourself and your family
The protection ILPs can provide to you and your family makes it different from other investment instruments. Some ILPs offer a total and permanent disability benefit, aside from a death benefit.
It is relevant for aggressive investors putting contingencies in place. It ensures your dependents receive a cash benefit when you pass away unexpectedly, even if your investments are doing badly.
FAQs
What does Invest Achiever cover?
Invest Achiever covers against total and permanent disability up to:
- age 65
- death
It has a payout equivalent to the net premium you have paid.
What can you get from life contingency benefits?
Life contingency benefit allows you to make partial withdrawals at:
You can focus on getting back on track. Your money continues to work for you.
Is ILP an advantage for retirement funds?
Yes. ILP protects you financially during your retirement. Plus, you will not worry about your medical bills in case something happens to you.
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