4 Best Investment Linked Policies (ILPs) in Singapore for Wealth Accumulation (2023 Edition)

Taking up an Investment Linked Policy (ILP) usually requires a long-term financial commitment. Constant portfolio management of the investment funds is necessary to ensure investment stays relevant in an investment plan.

InterestGuru.sg presents a list of the 4 Best Investment Linked Policies (ILPs) for your insurance coverage and wealth accumulation needs:

• Best investment linked policy  for coverage and flexibility – Manulife ManuInvest Duo
• Best investment linked policy for affordability/low policy charge – Etiqa Invest smart flex
• Best investment linked policy for wealth accumulation – HSBC Life Wealth Abundance
• Best investment linked policy for minimal life coverage – Manulife InvestReady Wealth II

What makes a good Investment Linked Policy?

The main objective of any Investment Linked Policy should be for wealth accumulation through dollar cost averaging. By investing regularly over a longer period of time, you ride out volatility to achieve long-term market growth in your investment plan.

There are mainly 2 types of Investment Linked Policy in the market focusing on:

• High Wealth Accumulation – Investment Linked Policies in this category have a high initial capital boost to buffer for market volatility (initial negative market conditions) or enhance returns (initial positive market condition) of your investment plan. However, the boost will be negated due to high yearly product charges. Withdrawal and en-cashment are usually heavily penalized which eats into your investment plan.
• High Insurance Coverage – Investment Linked Policies in this category allow riders to cover Critical Illness, Early Critical Illness, and Terminal Illness. The coverage for Death and Total Permanent Disability is also significantly higher. However, insurance charges and mortality charges will start to eat into financial returns at the later life stages. Hence, options to remove insurance coverage and focus on investment returns will be an excellent feature.

Read about: ETFs or Unit Trust Funds: Which is suitable for me?

Read about: How much life insurance coverage do you need? *NEW*

The best investment linked policies for coverage and wealth accumulation

The investment linked policies are hand-picked due to their product features and unique selling points.

Our criteria for picking the best Investment Linked Policies are as of below:

• Flexibility and range of available sub-unit trust funds
• Options for removing protection coverage
• Fees and recurring charges on the main investment Linked Policy
• Available protection coverages
• Unique product features

You can now use InterestGuru’s Investment Linked Policy Compare Portal to compare ILPs across the top insurers in Singapore.

Note: The Investment Linked Policies listed below are not ranked in any priority. Expect a break-even period of 10 to 15 years for all ILPs as most of the premiums paid in the initial years are used to pay for product charges/admin fees and insurance charges.

Read About: How does Investment Linked Policy work?

Read About: Is an Investment Linked Policy right for me?

Best investment linked policy (ILP) for coverage and flexibility – Manulife ManuInvest Duo

Manulife ManuInvest Duo lets you choose a sum assured of up to 100x your annual premium of coverage against Death, Total and Permanent Disability, and Terminal Illness. Choose a Minimum Investment Period of 10, 15 or 20 years.

Riders are available to enhance insurance coverage for Early Critical Illness and Critical Illness as well as premium waiver riders. Continue your investment plan with no further financial worries until policy termination.

What do we like about Manulife ManuInvest Duo

• You can choose the amount of insurance coverage you want (up to 100x the annual premium)
• You can skip up to 4 annual premium payments
• Initial welcome bonus to kickstart your investments (up to 80% depending on your chosen premium, sum assured and MIP)
• Yearly loyalty bonuses from the 7th policy year onwards to boost your investment portfolio

What do we not like about Manulife ManuInvest Duo

• Premiums are payable until the termination of the policy

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Manulife ManuInvest Duo wealth accumulation: [usr=4]

Read about: Manulife ManuInvest Duo Review

Fees & Charges for Manulife ManuInvest Duo

• Administrative charge of 5% per annum of the account value will be charged monthly from policy year 1 to 5. From policy year 6 onwards, the administrative charge will drop to 1% per annum.

Best investment linked policy (ILP) for affordability/low policy fees – Etiqa Invest smart flex

Etiqa Invest smart flex is a limited-pay whole-life ILP that gives you a start-up bonus of up to 80% of the first-year premium. Enjoy yearly special bonuses of 5% of the regular premiums paid from as early as the 6th policy year till the end of the premium payment term. Be rewarded yearly loyalty bonuses of 0.2% p.a. of the account value starting from the policy anniversary after the end of the premium payment term.

Etiqa Invest smart flex comes with optional riders to waive premiums in the event of death, total and permanent disability, and severe-staged critical illness so that you or your family member can continue the investment plan without further financial concern.

What we like about Etiqa Invest smart flex

• Affordable premiums from as low as $200 per month
• 2 free partial withdrawals during the premium payment term
• High startup bonus to cushion market volatility during the early years
• Low yearly policy fee = less gains eaten away (refer below for fee breakdown)
• Option to pause premium after the 6th policy year
• Riders to waive premiums in the event of death, TPD, critical illness

What we don’t like about Etiqa Invest smart flex

• Riders not available to cover for Early Critical Illness

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Read about: Etiqa Invest smart flex review

Additional product details: Etiqa Invest smart flex marketing brochure

Fees and Charges for Manulife InvestReady Wealth II

• Decreasing policy charge of 2% per annum applies from the 1st to 10th policy year, decreasing to 1.60% per annum from the 11th to 20th policy year, and 0.6% from the 21th policy year onwards

Best investment linked policy (ILP) for wealth accumulation – HSBC Life Wealth Abundance

HSBC Life Wealth Abundance offers 3 forms of bonuses to kickstart your investment plan and rewards you for staying invested. Receive up to 12% of your first-year premiums to enhance your returns when markets are rising, or shield your portfolio when markets are falling. Enjoy yearly loyalty bonuses of up to 0.3% of the regular account value after the end of the 10-year minimum investment period.

HSBC Life Wealth Abundance does not offer much protection coverage, meaning all your money (minus charges) contributed will be invested to generate the most returns for your investment. The startup bonus greatly assists in ensuring your investment plan stays protected in a market downturn.

What we like about HSBC Life Wealth Abundance

• No medical examination is needed, meaning everyone can purchase the plan
• Short minimum investment period of 10 years
• Unlimited partial withdrawal can be made with no charges incurred
• Take unlimited premium holidays after the end of MIP
• Account maintenance fee lowers from 2.1% p.a. to 0.6 p.a. after MIP
• Startup bonus offered to boost your policy
• Complimentary accidental death coverage

What we don’t like about HSBC Life Wealth Abundance

• Lowest insurance coverage among the three
• Only 2 free partial withdrawals can be made during the MIP

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HSBC Life Wealth Abundance wealth accumulation (Reduce coverage to Zero): [usr=4.75]

Read about: HSBC Life Wealth Abundance review 

Additional product details: HSBC Life Wealth Abundance marketing brochure

Best investment linked policy (ILP) for minimal life coverage – Manulife InvestReady Wealth II

Another great investment-linked policy from Manulife is their freshly upgraded InvestReady Wealth II. Low death/TPD/TI coverage makes this ILP a fantastic option for you if you want maximum growth of wealth.

Diversify your investments with over 100 funds to choose from. Invest in dividend-paying funds to receive additional passive income!

What we like about Manulife InvestReady Wealth II

• Low life coverage of 101% of total premiums paid or account value, which means less cost of insurance giving you maximum growth
• Welcome Bonus of up to 60% to kickstart your investments
• Loyalty Bonus of up to 0.8% from the end of your chosen MIP

What we don’t like about Manulife InvestReady Wealth II

• If you are looking for an investment plus coverage ILP, ManuInvest Duo may be more suitable for you
• Premiums are payable until policy termination

Read about: Manulife InvestReady Wealth II review

Fees and Charges for Manulife InvestReady Wealth II

• Administrative charge of 0.7% per annum of the account value will be charged monthly
• Supplementary charge of 1.8% per annum of the account value will be charged monthly for the first 10 years

When do you start an investment linked policy (ILP)?

The earlier you start, the more you benefit from an Investment Linked Policy. This is due to the long-term compounding effect and dollar cost averaging. Instead of timing the financial market, make your move by starting to plan for your financial goals.

Read about: 3 Best Savings Endowment Plans in Singapore for Lifetime Wealth Accumulation (2023 Edition)

It is also equally important that your financial adviser has the expertise and experience to manage your investment portfolio. Your Investment Linked Policies should be updated and rebalanced no less than once a year.

Read about: 3 things to consider before taking up a new financial product

Read about: How can I accumulate a million dollar (Realistically)

What is the best investment linked policy (ILP) for you?

Wish to know more about how the above Investment Linked policies fit into your financial and insurance portfolio? Wish to know the actual financial returns on the above products based on your age, budget and financial profile? Get in touch with our licensed financial adviser to get the most out of your investment plan now.

*For a limited time, get attractive incentives when you take up any products that is proposed by our team of financial planners.

Compare Investment Linked Policies from all leading insurers in Singapore

 

Drop us a message to let a licensed financial adviser work out a proposal at no cost to you.

Best Insurance Plans in Singapore

• Best Whole Life Insurance Plan Singapore 2023
• Best Term Life Insurance Plan Singapore 2023
• Best Endowment Savings Insurance Plan Singapore 2023
• Best Retirement Annuity Plan Singapore 2023
• Best Multipay Critical Illness Plan Singapore 2023

Note: All financial figures are based on close approximate and all non-guaranteed figures are based on the higher tier of 4.75% investment returns. The sample illustrations are for illustrative purposes only and is not a contract of insurance. Early surrendering or cashing out from an investment linked policy will certainly result in financial loss. In the event of doubt, always refer to the precise terms and conditions as specified in your policy contract. Seek the advice of a qualified financial professional or a licensed financial adviser before making any decision or financial commitment.

*Terms and conditions may apply, speak to our financial planners or drop us a message for more details.