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
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?
TRENDING NOW
Grab CEO’s wife Chloe Tong on life with Anthony Tan and finding her purpose
HDB reviewing ‘jumbo’ flat scheme after Telok Blangah unit listed for sale at S$2.18m
He built the Vingroup empire. Now South-east Asia’s richest man is handing some key roles to his sons
Singapore judge raises doubts iron ore trader Radiant World is owed US$1 billion
