Your premium will be used to purchase units in the investment-linked funds that you have selected. The value of the policy is linked to units in those funds. The value of the units directly reflects the value of the underlying fund, and fluctuates according the performance of the funds. Charges such as Insurance Charge and Administration Charge will be imposed on the policy.

Protection is the main difference. Investment-linked insurance offers wealth accumulation and protection solutions via its potential to earn high return while providing comprehensive range of insurance coverage such as critical illness, hospitalisation and accidental. Unit trust only helps in wealth accumulation.

In addition, premiums payable for insurance is eligible for tax relief up to RM6,000 per annum, subject to final approval by the Inland Revenue Board.

In Malaysia, the 2 most common types of investment-linked plan are regular premium investment-linked and single premium investment-linked plan. A regular premium investment-linked plan requires premium to be payable for whole of life while a single premium investment-linked plan requires a single lump sum investment only.

Manulife Insurance Berhadoffers both type of plans, and also a 2-year premium investment-linked plan which requires regular premium payment for 2 years only. A regular premium investment-linked plan is the most flexible of all. Click here for further info.