Investment-Linked Insurance Policy

24 08 2009
First of all, you most likely already have an investment-linked insurance policy (ILP).

Maybe your agent might not have told you about it, but if you are like many others who has a medical health plan, it is most likely to have been tied with one.

When it comes to ILP, there are many different views on it. Some says it’s the future of the insurance industry (well, to the extend that some companies ONLY have ILP products) while some say they would rather not risk their insurance coverage with investments. Do you still remember why you got yourself an ILP?

Do you understand the risks you are taking all these while as an ILP policyholder?

Also why must your medical card plan be tied to an ILP? I can’t be sure, but I can speculate on a few possible reasons:

1) a medical health plan is a very important defensive financial tool to help you guard against expensive medical expenses. Since the inflation for medical and hospitalization stands at about 6-7% on an average, it’s not surprising that the profit margin for medical health plan is the lowest for the Insurance Companies (IC). So, what better way to rebalance it with a tie-up with insurance policy.




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