Investment-linked
Questions:
- What is investment-linked insurance?
- How does the investment-linked life insurance plan works?
- What are the differences between investment-linked and unit trust?
- What are the types of investment-linked insurance plan available in Malaysia?
- What flexibility does a regular premium investment-linked insurance plan offer?
1. What is investment-linked insurance?
Investment-linked life insurance is an insurance plan that offers life insurance protection as well as investment opportunity to the policyowner. The benefits of the plan are directly linked to the performance of the investment-linked funds that are chosen by customers in accordance to their risk preference.
2. How does the investment-linked life insurance plan works?
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.
3. What are the differences between investment-linked and unit trust?
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.
4. What are the types of investment-linked insurance plan available in Malaysia?
In Malaysia, the 2 most common types of investment-linked insurance plan are regular premium investment-linked and single premium investment-linked insurance plan. A regular premium investment-linked insurance plan requires premium to be payable for whole of life while a single premium investment-linked insurance plan requires a single lump sum investment only.
Manulife Insurance Berhad offers both type of plans. A regular premium investment-linked plan is the most flexible of all. Click here for further info.
5. What flexibility does a regular premium investment-linked insurance plan offer?
A regular premium investment-linked insurance plan offers:
- Flexibility to increase or decrease the insurance coverage
- Flexibility to increase or decrease the regular premium savings
- Flexibility to switch investment funds
- Top-up option to increase the investment amount
- Full or partial withdrawals at any time