6 Best Investment Linked Policies (ILPs) in Singapore for Wealth Accumulation (2024 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 that the investment stays relevant in the Investment Linked Policy (ILP).

InterestGuru.sg presents a list of the 6 Best Investment Linked Policies (ILPs) for your insurance coverage and wealth accumulation needs:

• Best investment linked policy for policy charges – HSBC Life Wealth Voyage
• Best investment linked policy  for coverage – Manulife ManuInvest Duo
• Best investment linked policy for affordability – Etiqa Invest smart flex
• Best investment linked policy for wealth accumulation – HSBC Life Wealth Abundance
• Best investment linked policy for shortest premium payment – Manulife InvestReady III
• Best investment linked policy for single premium – Tokio Marine #GoElite Secure
  
  

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 (ILP) in the market focusing on:

• High Wealth Accumulation – Investment Linked Policies (ILP) 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 encashment are usually heavily penalized which reduces your returns in your investment plan.
• High Insurance Coverage – Investment Linked Policies (ILP) in this category allow riders to cover Critical Illness, Early Critical Illness, and Total Permanent Disability. The coverage for Death and Total Permanent Disability is also significantly higher. However, insurance charges and mortality charges will start to cause a reduction in your 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: How much life insurance coverage do you need? *NEW*

The Best Investment Linked Policies (ILP) 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 (ILP) are as of below:

• Flexibility and range of available sub-unit trust funds
• Options for removing protection coverage
• Policy charges on the Investment Linked Policy (ILP)
• Available protection coverages
• Unique product features
  
  

Note: The Investment Linked Policies (ILP) listed below are not ranked in any priority. Expect a break-even period of 10 to 15 years for all Investment Linked Policies (ILP) as most of the premiums paid in the initial years are used to pay for policy 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 Policy Charges – HSBC Life Wealth Voyage

*For a limited time only, enjoy ADDTIONAL Start Up Bonus of up to 30% of your premiums. Contact us today for a non-obligated planning with our friendly but professional advisors.

HSBC Life Wealth Voyage, one of the newest Investment Linked Policy (ILP) offered by HSBC Life is a game changer.

What we like about HSBC Life Wealth Voyage is it’s relatively low minimum regular premium ($300/month) to kick start your wealth accumulation journey. You do not need a huge amount to start investing, do yourself a favor, start investing in small amount but as soon as possible to kick start your retirement journey!

Another thing we love about HSBC Life Wealth Voyage is the policy charges. Instead of charging on the account value, HSBC Life Wealth Voyage’s policy charges is on the premiums paid, that also means that over the years as your investment monies grows, your charges does not grow!

HSBC Life Wealth Voyage offers 3 forms of bonuses to kickstart your Investment plan. Receive start up bonus of up to 50% of your first-year premiums to enhance your returns when markets are rising, or shield your portfolio when markets are falling. 

Power up bonus and Loyalty Bonus will also be credited during and after the minimum investment period, which in turns, helps to pay off the policy charges for the Investment Linked Policy (ILP)

What we like about HSBC Life Wealth Voyage

• Policy charges is on total premiums paid, not on the current account value. Your charges will not increase as your investment monies increase
• 24 months premium holiday can be activated with no charges after the 2nd year
• No premium shortfall charge from as early as the 8th year onwards. You can stop paying premiums with no penalty!
• Low yearly policy charges = less gains eaten away (refer below for fee breakdown)
• Startup bonus offered to boost your policy
• Complimentary accidental death coverage
• Access to restricted funds such as FundSmith Equity Fund that are available to Accredited Investors only
  
  

Read about: FundSmith Equity Fund

What we don’t like about HSBC Life Wealth Voyage

• Slightly higher policy charges, but charges can be cancelled off with loyalty bonus paid to the plan
  
  

Read about: HSBC Life Wealth Voyage review 

Additional product details: HSBC Life Wealth Voyage Marketing Brochure

Fees and Charges for HSBC Life Wealth Voyage

• Account Maintenance charge: 2.3/2.15% per annum of the Total Premiums Paid during the minimum investment period, 1% per annum of the Total Premiums Paid after the minimum investment period
  
  

Best Investment Linked Policy (ILP) for Coverage- Manulife ManuInvest Duo

Manulife ManuInvest Duo gives you the best of both world. This Investment Linked Policy (ILP) 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.

Premiums Payable Riders and Units Deducting Riders are available for add on to enhance insurance coverage for Early Critical Illness and Critical Illness as well as Premium Waiver Riders. Continue your investment linked plan with no further financial worries should the unforeseen happens, 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 starting from the 6th policy year
• Initial welcome bonus to kickstart your investments (up to 80% depending on your chosen premium, sum assured and MIP)
• Yearly loyalty bonuses from the 6th policy year onwards to boost your investment portfolio
  
  

What do we not like about Manulife ManuInvest Duo

• High administrative charge
• Premiums are payable for the chosen minimum investment period, otherwise, charges will be incurred
• Limited number of funds selection as the sub-finds are managed by Manulife.
• High cost of insurance after certain age may result in lower financial returns. A periodic portfolio review can help prevent this from happening. Contact us for a Free Portfolio Review to make sure your needs and financial goals are well taken care of!
  
  

Read about: Manulife ManuInvest Duo Review

Additional product details: Manulife ManuInvest Duo Marketing Brochure

Fees and Charges for Manulife ManuInvest Duo

• Administrative charge: 5% per annum of the account value for the first 5 years, 1% per annum of the account value from the 6th year onwards
  
  

Best Investment Linked Policy (ILP) for Affordability- Etiqa Invest Smart Flex

Etiqa Invest Smart Flex is a limited-pay whole-life Investment Linked Policy (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 with yearly loyalty bonuses of 0.2% p.a. of the account value starting from the policy anniversary after the end of the minimum investment period.

Etiqa Invest Smart Flex also comes with an optional rider for add on to waive premiums in the event of Severe-Staged Critical Illness so that you can continue the Investment Linked Plan (ILP) 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 from the 4th policy year
• High startup bonus to cushion market volatility during the early years
• Low yearly policy charges = less gains eaten away (refer below for fee breakdown)
• No premium shortfall charge from as early as the 6th year onwards. You can stop paying premiums with no penalty!
• Riders to waive premiums for Critical Illness
• Access to restricted funds such as FundSmith Equity Fund that are available to Accredited Investors only
  
  

Read about: FundSmith Equity Fund

What we don’t like about Etiqa Invest Smart Flex

• Riders not available to cover for Early Critical Illness
• Insurance charge will apply on the Sum at Risk which is the difference between the initial premiums and the account value (If total premiums paid is more than the account value).
  
  

Read about: Etiqa Invest Smart Flex review

Additional product details: Etiqa Invest Smart Flex Marketing Brochure

Fees and Charges for Etiqa Invest Smart Flex

• Policy charge: 2% per annum of the account value for the first 10 years, 1.6% per annum of the account value for the 11th year to 20th year and 0.6% per annum of the account value from the 21th 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 start up bonus of 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

• Short minimum investment period of 10 years
• 2 free partial withdrawal can be made with no charges incurred during the minimum investment period
• No premium shortfall charge from as early as the 6th year onwards. You can stop paying premiums with no penalty!
• Low yearly policy charges = less gains eaten away (refer below for fee breakdown)
• Startup bonus offered to boost your policy
• Complimentary accidental death coverage
• Access to restricted funds such as FundSmith Equity Fund that are available to Accredited Investors only
  
  

Read about: FundSmith Equity Fund

What we don’t like about HSBC Life Wealth Abundance

• Start up bonus is generally lower as compare to other insurers
  
  

Read about: HSBC Life Wealth Abundance review 

Additional product details: HSBC Life Wealth Abundance Marketing Brochure

Fees and Charges for HSBC Life Wealth Abundance

• Administrative charge: 2.1% per annum of the account value during the minimum investment period, 0.6% per annum of the account value after the minimum investment period
  
  

Best Investment Linked Policy (ILP) for Minimal Life Coverage – Manulife InvestReady III

Another great Investment Linked Policy (ILP) from Manulife is their freshly upgraded Manulife InvestReady III. Low Death, Total Permanent Disability and Terminal Illness coverage makes this Investment Linked Policy 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 III

• Welcome Bonus of up to 45% to kickstart your investments journey
• Loyalty Bonus of up to 0.3% from the end of your chosen minimum investment period
• Short minimum investment period of as short as 5 years is available
  
  

What we don’t like about Manulife InvestReady III

• Insurance charge will apply on the Sum at Risk which is the difference between the initial premiums and the account value (If total premiums paid is more than the account value)
  
  

Read about: Manulife InvestReady III review

Additional product details: Manulife InvestReady III Marketing Brochure

Fees and Charges for Manulife InvestReady III

• Administrative charge: 2.5% per annum of the account value during the minimum investment period, 1%/0.7% per annum of the account value after the minimum investment period
  
  

Best Investment Linked Policy (ILP) for Single Premium – Tokio Marine #GoElite Secure

Tokio Marine #GoElite Secure offers you the option to invest using your SRS monies in a single lump sum! What’s best is you can do partial withdrawal of your Investment Linked policy (ILP) with no charges, offers you flexibility while staying invested.

Tokio Marine #GoElite Secure, however, unlike other regular premium policies, it does not offer welcome bonus, this could also mean that your investment amount, if enter at the wrong timing, may be impacted during a market downturn, especially for single premium plans where you do not do dollar cost averaging.

What we like about Tokio Marine #GoElite Secure

• You can invest into this plan using your SRS monies
• Wide range of currencies that you can invest with ((SGD, AUD, GBP, USD and EUR)
• No charges for partial withdrawal
• Access to restricted funds such as FundSmith Equity Fund that are available to Accredited Investors only
  
  

Read about: FundSmith Equity Fund

What we don’t like about Tokio Marine #GoElite Secure

• 5% premium charge for single top up or recurring premiums
• No welcome bonus
• Insurance charge will apply on the Sum at Risk which is the difference between the initial premiums and the account value (If total premiums paid is more than the account value)
  
  

Read about: Tokio Marine #GoElite Secure review 

Additional product details: Tokio Marine #GoElite Secure Marketing Brochure

Fees and Charges for Tokio Marine #GoElite Secure

• Establishment charge: 1.4% per annum of the initial single premium paid for the first 5 years
• Administrative charge: 1% per annum on the account value for as long as the policy is in-force
  
  

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 (Updated)

It is also equally important that your financial adviser has the expertise and experience to manage your investment portfolio. Your Investment Linked Policies (ILP) 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 (ILP)  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.