Manage your AIA plans, employee benefits, stay healthy with AIA Vitality, and access healthcare services.
{{title}}
{{label}}
So, you’ve got all your insurance needs locked down. Let’s take a quick checklist:
Medical card:
checked!
Life protection:
checked!
Investment-linked plan – what’s that?
Investment-linked plan is a hybrid of insurance protection and an investment component where you get to enjoy the possible returns of investing in various investment funds that suit your risk appetite. Before you decide if this is the right plan for you, find out what it is all about:
Investment-linked plan vs. life insurance plan. What’s the big difference?
VS.
Insurance plan
Life insurance provides a payout of your coverage amount to your dependents if the unexpected happen to you.
Investment-linked plan
Investment-linked plan, on the other hand, allows you to withdraw some of your account value for your financial needs during your coverage period on top of the payout to your dependents if the unexpected happen to you.
How does an investment-linked plan work?
An investment-linked plan has two purposes for its premium:
One portion goes into insurance protection
Another portion goes into investment funds
Three important questions to ask before calling your agent
You want to achieve dollar-cost-average effectiveness over the long run in your investment. You can choose to invest your funds in equities by buying your units at a low price and selling at a high price to maximise your profits. But in reality, no one knows the right time to invest. You can leverage on the expertise of our Investment-Fund Manager to help you achieve your investment goals.
The primary purpose of life insurance is to guarantee your source of income, especially in light of an unexpected event, such as death, loss of income or physical mobility. With A-InvestLink, your dependents will be paid a lump sum in the event of your death or total and permanent disability.
What are the benefits of an investment-linked plan?
Besides the added advantage of having both protection and investment in one plan, here are some other perks of an investment-linked plan:
Freedom & Flexibility
You have the freedom to invest more money when you have a surplus or to withdraw money when you face an emergency and enjoy the flexibility to switch your funds at any time to increase your investment account value, to take advantage of changes in the market.
Transparency
You get access to all your transactions clearly and see where your funds go to. You will also receive a periodic statement that clearly and precisely list all the transactions such as insurance charges, investment value and fund unit price.
Low insurance charges
The younger you are when you purchase your investment-linked plan, the lower the premium. This benefit applies to fresh graduates or first-jobbers.
All-in-one benefits
On top of your existing Death and Total and Permanent Disability benefits, you can increase or widen your protection needs by purchasing add-ons such as medical, critical illnesses, accidental and hospital income needs.
You are in control of your investment risk.
A common misconception is that the investment-linked plan is risky because the returns depend on the fund performance of the market. But, you have complete control over your investments risk by selecting which fund to invest in and when to switch between funds.
The Investment-linked plan offers first time and veteran investors a platform to invest and receive protection at the same time. The flexibility and availability to control your insurance coverage and investment growth are reasons why an investment-linked plan is a popular choice.
Do bear in mind that investment-linked plans do not guarantee a fixed growth. As you grow in age, a bigger portion of premium will go towards maintaining your coverage, reducing the premium that goes into investment funds.
Evaluate your options to find out what is the best mix of premium for you.
The above articles are intended for informational purposes only. AIA accepts no responsibility for loss which may arise from reliance on information contained in the articles.
Rainy days, dream holidays, kids’ education, retirement - whatever you’re saving up for, it’s important that you have the right plan to start growing your nest.
