Invest in Investment-linked Assurance Scheme or funds?

Investment choices

The insurance company offers various investment options for ILAS policies by selecting different funds for customers to choose from. Please be noted that when purchasing ILAS, customers are obtaining a policy for the ILAS but not the related funds, which are held by the insurance company.

The types and selection of funds offered by different financial institutions vary. Investors can choose and purchase funds on their own. If you purchase funds directly, you will become the fund holder and have direct ownership of the related funds.

Fees and charges

Administrative and policy fees are typically charged for the product, as well as surrender charges when withdrawing money or surrender. Fees vary by insurance companies.

However, fund switching is generally free of charge, while investment choice switches are usually fully waived with unlimited number of switches.

Under normal circumstances, charges for fund purchases, sales, conversions or other fund transactions (if applicable) will be collected on a transactional basis.

Contribution options

Customers can choose to pay their premiums on a monthly, half-yearly or annual basis, and the available options may vary depending on the chosen insurance company.

Single lump sum investment or monthly installment options may be available with some financial institutions.

Death benefit

Yes and designated beneficiary(ies) can be specified.

In the event of the insured’s death, the designated beneficiary(ies) can directly receive the death benefit without having to go through the inheritance procedures. The amount of the death benefit is generally guaranteed to be no less than the total premium paid, but may vary depending on the insurance company.

No.

In the unfortunate event of the investor's demise, the fund interest will become part of the investor's estate, and the estate beneficiary(ies) will need to go through the estate administration process.

Cooling-off period