Finances

Published on newspaper recently, it was reported that sources said NAMLIFA had highlighted the need to have a minimum guaranteed sum to protect policy holders of  ILPs. Is it work-able? If yes, how to work it out? Everyone knows what is Investment-Linked Plan (ILP)? Basically, an ILP have both protection and investment element inside one plan. It gives the flexibility to policy holders to adjust the benefits and investment part. Unlike traditional life policies, how much policy value in an ILPs depends on the performance of the underlying funds being chosen. Since policy holder is the one who shoulder the risk, the ILPs premium tends to be cheaper. The key disadvantage of ILPs was the return was not guaranteed. How about a Minimum Guaranteed Returns? To eliminate the investment risk associated of an ILP, NAMLIFA has proposed to the central bank to have such minimum guaranteed return. And, the minimum guaranteed return they're looking at is between current fixed deposit and EPF rat