An Investment-Linked Assurance Scheme (ILAS) is a long term insurance policy which provides both life insurance protection and investment options. It is designed for investors who are prepared to hold the investment for a long term period and willing to pay surrender charges which may be high if the policy is surrendered in early years. ILAS products are also subject to different fees and charges in relation to both the insurance and investment elements.
Before making a purchase decision, you should understand the features and risks of the ILAS policy. Think carefully about your own circumstances and the reason why you want to get an ILAS policy. If you are neither prepared to hold the ILAS policy for a long term period nor willing to pay a surrender charge which may be high in early years, it may not be suitable for you. You should consider if there are other options (e.g. buying a life insurance policy and invest in funds via an asset-based fund platform separately) that may better suit your needs.
Read the following sections to learn more about ILAS. Do not purchase or invest in any products that you do not understand.