Understand investment-linked assurance schemes and the new regulatory measures


An investment-linked assurance scheme (ILAS) is a long-term investment-cum-life insurance product. Products such as investment plans, saving plans, investment-linked plans and fund plans with a lock-in period may in fact be ILAS products.

ILAS products are generally designed for consumers who have a long-term investment horizon and a dual objective of investment and insurance / estate planning, intend and are able to pay the premiums for the whole of the policy term and accept that their death benefits are subject to investment risks.

Buying an ILAS product is not the same as investing in a fund. It is important that you as consumers understand the product's features and risks and know how to differentiate an ILAS from other financial products.

Hong Kong's financial regulators and the Hong Kong Federation of Insurers have introduced new regulatory measures to enhance the disclosure and sale of ILAS products to further protect you throughout the sales process.

The IEC, in collaboration with the financial regulators, has developed various education materials to help you better understand the features and risks of ILAS such as fees and charges, the new regulatory measures, the role of ILAS in an overall financial plan and how to make the best use of product disclosure.