Is Buying Term Insurance is better over Investment Linked Insurance Plan | Insurance Malaysia

It is a debatable topic.

Some are saying, it is better to but investment link policy (ILP).

Some are saying to just buy term insurance, and invest the rest of the money.

The characteristics of investment link policy (ILP).

1. You have a "fixed" monthly premium.

2. It comes with a savings or cash value feature.

This is actually the main reason why many people are buying investment link policy.

However, if you do not know what the funds that you are investing, the performance may not be optimal.

Note that it is still mutual funds.

And it comes with fees. 

3. The returns of the funds are not guaranteed.

Sometimes, the returns can be negative.

Reference:

https://www.freemalaysiatoday.com/category/leisure/2020/04/30/5-things-you-didnt-know-about-investment-linked-policies/

https://kclau.com/insurance/investment-linked-vs-traditional-insurance/

Happy Investing! 😉