Investment-Linked Assurance Scheme (ILAS)

ILAS are hybrid of insurance and investment. They are simply insurance policies wrapping investment features into the plans. Many countries tax on investment gains but not on proceeds from insurance policies. So, for tax planning, ILAS is common vehicle. Intrinsically, ILAS has an additional 1% life protection built in. Thus, when the insured passes away, his/her beneficiaries will get back 101% of the policy values, adjusted with the investment gains/losses of the underlying investments. As a result, ILAS plans are also called 101-plans by the general public. Investments in the ILAS plans can be accumulated by regular contribution or by a lumpsum arrangement.

Investment-Linked Assurance Scheme (ILAS)

ILAS are hybrid of insurance and investment. They are simply insurance policies wrapping investment features into the plans. Many countries tax on investment gains but not on proceeds from insurance policies. So, for tax planning, ILAS is common vehicle. Intrinsically, ILAS has an additional 1% life protection built in. Thus, when the insured passes away, his/her beneficiaries will get back 101% of the policy values, adjusted with the investment gains/losses of the underlying investments. As a result, ILAS plans are also called 101-plans by the general public. Investments in the ILAS plans can be accumulated by regular contribution or by a lumpsum arrangement.

Lumpsum

Having saved a chunk of money, clients can choose to put in the whole into an ILAS plan in one arrangement. The amount can be put into a portfolio, as discussed with the wealth management consultant.

Regular Savings Plan

There is Chinese saying that dripping water can be saved to become a river and sand can be accumulated to build a tower. The power of savings can be great. The power of compound interest can even be astronomical, as said by Albert Eienstein. Regular Savings Plans allows the client to build up a habit of savings. Putting the money into investment-linked schemes and managing by portfolio with regular reviews, the money saved in the plan could be used for various purpose of retirement, children education, etc. Clients should discuss with their wealth management consultants for the scheme selection and portfolio structure.