Benefits of Investing in Investment-linked Policies 投資於投資相連保單的好處

Investment Choice and Fund Benefits 投資選擇與基金投資的好處

An investment-linked policy combines life cover with fund investment, and its investment performance is directly linked to the underlying funds. The policyholder can benefit from fund performance but also bears the associated risks; potential returns are neither guaranteed nor certain to exceed those of other life insurance products.

The policyholder can allocate money among funds offered by the authorised insurer to match investment objectives and preferences for risk and return. Switching between available funds allows the portfolio to change as life stages, investment needs or market conditions change; the choice is limited to funds available under the policy.

The underlying funds can provide access to professional fund management and a diversified portfolio even where the policyholder has limited capital. Diversification helps reduce excessive concentration in individual investments, but it cannot remove every investment risk.

Adjusting Premiums to Cash Flow 按現金周轉調整保費

Flexible premium arrangements allow the policyholder to increase or decrease regular premiums and make occasional top-ups as finances change. For example, stronger cash flow may allow more money to be paid into the policy.

When cash flow is tight, premiums may be reduced or suspended under the policy arrangements, provided the investment account can meet the required fees, including relevant insurance and investment charges. Charges continue during a suspension, so the ability to remain on a premium holiday depends on the account continuing to hold enough value.

Adjusting Cover and Choosing Death Benefits 調整保額與選擇死亡保險金

A regular premium investment-linked policy generally allows the policyholder to choose a sum assured within specified limits for a given premium, and to increase or decrease it later as needs change. Such changes are normally limited to once a year and are subject to underwriting requirements; flexible premiums do not mean that extra cover will automatically be approved.

Increasing cover within an existing investment-linked policy is generally more convenient and may cost less than obtaining additional traditional whole life cover. Most traditional whole life policies do not allow the sum assured to be increased directly, so a new policy is needed for the additional cover.

Common death benefit options include level death benefit, increasing death benefit and the 105 Plan. The 105 Plan provides death cover equal to 5% of the policy account value in addition to that account value. Favourable long-term investment performance can increase the death benefit according to the option chosen, without automatically increasing the chosen sum assured. [IA Paper V Study Notes (2023), section 4.6.6](https://www.peak.edu.hk/exam/en/docs/SN_P5_eng_2023.pdf#page=97)

Partial Surrender and Withdrawals 局部退保與提款

A policyholder can usually obtain cash through a partial surrender, subject to a specified minimum withdrawal and enough remaining value to meet fees and relevant insurance charges. The ability to withdraw does not mean the account can be emptied while cover continues.

A withdrawal is funded by encashing the required number of units. Assuming no withdrawal charge, the units encashed equal the withdrawal amount divided by the applicable unit encashment price; the policy then holds fewer units.

This provides access to cash without taking an interest-bearing policy loan or surrendering the entire policy for its surrender value and losing the cover. Avoiding loan interest does not mean that all charges disappear, and the conditions for maintaining the policy must still be met.