Investment Linked Life Insurance
 An
investment-linked life insurance offers greater flexibility than whole
or term life insurance. After your initial payment, you can reduce or increase
the amount of your death benefit (although to increase the amount, you'll
probably have to give the insurance company medical proof that you are
still in good health). Also, after your initial payment, you can pay premiums
any time, in almost any amount within the policy's required minimums and
maximums.
You will need to actively manage
these policies to maintain sufficient funding, especially because the insurance
company can increase charges (like mortality and expenses). Plus, part
of your premium is invested by the insurance company in investment
linked funds, so you'll need to be careful when choosing
the right investment linked funds.
Benefits of
Investment Linked Insurance
An investment-linked life insurance
gives you the power to manage your protection and investment needs in one
account. The investment-linked life insurance plan gives you a mix of life
insurance protection and an investment account with the flexibility to
change this mix at any time.
Life Insurance
You have a choice of how much life insurance
you want which is called the basic sum insured. Upon death both the basic
sum insured and the investment account balance are payable.
Upon Total and Permanent Disability,
the basic sum insured is payable and you have the choice of:-
1. Terminating the policy and receiving
the investment account value; or
2. Continuing with the investment
account
Investment
Account
The balance of your premiums not allocated
for  life
insurance protection can be used for Investments. You have a choice of
many types of professionally managed funds to make up your investment account,
based on your investment risk profile.
Total Flexibility
You can make withdrawals and cash out
your policy at any time. Furthermore, you can stop paying premiums and
still enjoy the life insurance protection as long as there are sufficient
units in your investment-linked life insurance account to pay for the insurance
charges and policy fees. |
