WHAT IS AN INVSESTMENT-LINKED INSURANCE PLAN? Note : The following sections are extracts from the Investment-Linked Insurance Booklet published by insurance info (Bank Negara Malaysia) that generally explains about the product. Please download the complete copy for full information by clicking below. An investment-linked plan is a life insurance plan that combines investment and protection. The premiums that you pay provide you not only with life insurance cover but part of the premiums will also be invested in specific investment funds of your choice. As a policyholder, you can choose how to allocate your insurance premiums towards protection and investment. The insurance coverage provided would include death benefit, disability and critical illness. The investment fund is divided into units of equal value. The prices of these units are published daily in the newspapers for you to track the value of your investments. (Extracts from pages 1 and 2 of the booklet) Download a complete copy of Investment-Linked Insurance Booklet published by insurance info.

UNIQUE FEATURES OF INVESTMENT-LINKED PLAN. As an insurance plan that combines investment and protection, investment-linked plans have the following unique features :- You are given the flexibility to choose your own level of protection and investment. You can vary the amount of your premium payments or coverage according to your changing financial circumstances. You can choose from a wide variety of funds to invest in, depending on the level of risk that you are comfortable with. Investment in growth or equity-related funds may give higher returns that traditional life insurance plans over the long term. However, you have to bear in mind that higher returns come with greater risks. (Extracts from page 2 of the booklet) Download a complete copy of Investment-Linked Insurance Booklet published by insurance info.

IMPORTANT CONSIDERATIONS IN CHOOSING THE RIGHT PLAN. Once you have decided on buying an investment-linked insurance plan, you have to consider factors such as :- the amount of investment the choice of either single or regular-premium plan types of funds the level of protection you need Buying such a product is like having a personalised plan tailored to your special financial needs. It is important that you evaluate your options carefully to find the right plan with the right fund to suit your needs. There are a few things that you must consider when buying an investment-linked insurance plan :- Protection cover...The premium that you pay provides insurance coverage for death and total permanent disability. With additional premium, you can also be covered for certain critical illnesses and other options. Fees and charges...There are various types of fees and charges which will reduce the value of investment. Cash value accumulation...Regular-premium investment-linked plans may not accumulate adequate cash value during the early policy years. This means that if the policy is terminated during the early period, you may not get back any investment value. Right fund to invest...You are given a choice of investing in various funds. Funds that are invested mainly in equities will involve higher risks than those invested in fixed income securities or bonds. For example, you may choose a growth fund that invests in equities, a more secure fund in bonds and other fixed interest investments, or a combination of the two. Some insurance companies offer Islamic funds, which are invested in accordance with Shariah principles. Fund switching...Should you feel that you have made the wrong choice or you would like to change the profile of your investment portfolio, you are allowed to switch your units from one investment fund to another. Most companies allow one switch per year without any fee. For additional switches, a processing fee of up to RM100 may be charged. (Extracts from pages 5 to 8 of the booklet) Download a complete copy of Investment-Linked Insurance Booklet published by insurance info.