Investment-linked insurance plans: That welcome bonus could cost more than you expect
There is no reason to have ILPs in one’s portfolio, given their high fees, limited fund options and lock-in structure
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RECENTLY, The Straits Times reported that while sales of investment-linked insurance policies (ILPs) grew by 72 per cent from 2022 to 2024, complaints against them were also at all-time high in 2024 – at 211 complaints against 53 in 2023.
Eunice Chua, chief executive of Financial Industry Disputes Resolution Centre (Fidrec) said it became clear during the mediation sessions that most consumers did not really understand what an ILP was. Many complaints pertained to market misconduct, which included practices such as mis-selling, misrepresentation, inadequate disclosure about the products or giving inappropriate financial advice.
Why are ILPs so difficult to understand?
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