Regular Premium Plan-ILP
From Financial Literacy Wiki
For regular premium plan, you need to pay premiums at regular intervals depending on the policy you are purchasing. The benefits of such plan would vary across companies as well. Some companies pay the sum assured and the policy value (the value of the unit trusts), while there may be plans that pay whichever is lower, the sum assured or the policy value. Under Monetary Authority of Singapore's guidelines, the sums assured of a regular premium plan must be at least five times that of the annual premium.
Regular premium have the following features that one should take note of when purchasing:
Contents |
Variable Protection/Investment Mix
Policyholder is allowed to vary the proportion of his premiums towards insurance cover and for investments. This flexibility allow the policyholder to adjust his plans according to his financial situations. For example, when one is single, he can allocate more of his premium towards investment. But once he has a family, he can allocate more of his premiums towards protection. One has to note that if he wants to increase his insurance cover, most companies would require policy holder to go through a medical examination.
Premium Top Up
You can increase your premiums to purchase additional insurance cover or unit trusts. Topping up can be done at any time as long as the policy is not on a premium holiday and premium is not overdue. One has to take note that there is a minimum amount for top ups and it is subjected to a top-up fee.
Premium Holiday
Premium holiday allows policyholders to temporary suspend paying premiums and divert the funds for premium to other uses. Meanwhile, one is still under the cover of the insurance as long as there are sufficient funds (from your unit trusts) in your insurance account to service the premium and administrative fees. The duration of your premium holiday is thus subjected to the prevailing funds inside your insurance account.
Partial Withdrawal
Policyholders can withdraw money from his policy any time after the first premium is paid and invested. Again, there is a minimum amount for withdrawal. In addition, you must maintain a minimum balance in your account after the partial withdrawal. You can make a full withdrawal any time after the first premium is paid and invested. You will receive the profits of the unit trusts sales less any exit fees.
