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FAQs on Investment-linked Insurance
 
    Is the return on an investment-linked fund guaranteed?
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      No, the return on an investment-linked fund is not guaranteed. This is because the price of the units that you hold may rise or fall depending on the market value of the investment.
       
    What are bid and offer prices?
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      The offer price is the price quoted by the insurance company when selling the units of an investment-linked fund to you. The bid price is the price quoted when the company buys back the units from you. The difference between bid and offer prices is called the bid/offer spread, which is usually expressed as a percentage. The spread is usually about 5%.
       
    Would I know the charges I pay under my investment-linked insurance plan?
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      An investment-linked insurance plan is usually more transparent than other plans in disclosing the charges that are levied. Theses charges, including insurance charges, administration costs and fund management fees, are disclosed in the statement sent to all policyholders.
       

    Do I have to surrender my investment-linked insurance plan if I decide to change the investment fund?
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      No, it is not advisable to surrender your existing insurance plan if you decide to change the investment fund. This is because you may get less than what you have invested due to fees and charges. What you can do is to switch funds and most insurance companies allow one switch per year without any fee. However, for additional switches, you may be charged a processing fee.
       
    Can I increase my investment?
    •  
      Yes, you are allowed to top up on your exising investment-linked insurance plan at any time. The 'top-ups' are normally used to enhance the investment portion of both single and regular-premium plans without any change in the insurance coverage. You can also increase the coverage for death, critical illness, hospitalisation, accident and others.
       
    How long should I hold my investment-linked insurance plan?
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      There is no fixed period of time for you to hold on to your investment-linked insurance plan. It is like a savings account in a bank or a unit trust in which you may decide on the duration of holding onto your plan. However, it is not advisable to hold the plan for a short period of time in view of the high initial costs.
       
 
 
 
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Investment-linked insurance
 
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