It is important to save money but even more important to save it the smart way. You don’t simply want to squirrel away a portion of your salary into a savings account each month. Investing your money to accumulate wealth for short-term and long-term goals might be another option. An investment-linked plan is a flexible investment plan that can help you grow your wealth while offering you coverage at the same time. In this article, we take a look at 5 benefits that you can enjoy with an investment-linked plan.
But first, what is an investment-linked plan?
An investment-linked plan allows you to invest in expert-selected sub-funds (usually handpicked by the insurer). You also enjoy life insurance protection too. Your premiums essentially get divided between paying for the investment and insurance components of the plan.
Now, let’s take a look at the benefits of an investment-linked plan –
There are many great investment-linked plan options out there. However, here are some amazing benefits that you might want to look out for –
- Locked-in coverage
An investment-linked plan that can lock in coverage at the peak of the plan’s value for death and accidental disability can truly give you the assurance and peace of mind.
- Low administrative costs
Investment-linked plans are generally associated with several administrative charges for the service the insurer provides. Thus, it helps to find an investment-linked plan which comes with low and reasonable administrative costs so that you do not part with too high of such costs. Some insurers charge as low as 0.8% p.a.
- Flexibility to evolve with changing requirements
These days, investment-linked plans are quite flexible in nature. You can make changes to your plan as your needs and priorities in life change. You may even switch between funds, make a top up or even make changes to the coverage that your plan offers you. This way, your investment-linked plan never stagnates but rather keeps up with your evolving needs as the years roll by. Â Some investment-linked plans are truly flexible investment plans as they also give you the option to change the life assured up to 3 times. This way, you can transfer accumulated wealth through the generations in your family and leave behind a legacy of security.
- 100% investment from the get-go
An investment-linked plan that allows you to invest 100% of your premiums right from the very first day wastes no time to make your money work harder for you and offers you the potential of increasing your wealth exponentially. You can even receive a loyalty bonus from the insurance company every couple of years.
Keep these features in mind when searching for an investment-linked plan in Singapore. You may consider speaking to a financial consultant for advice or help in selecting the right plan as per your risk appetite. Do remember to do proper research to support your decisions when investing your money.
We hope that these benefits have enlightened you about the many advantages of opting in for an investment-linked plan. Do speak to a financial consultant to find a flexible investment plan that suits your needs.
All the best!
