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What is an Investment Linked Policy?

April 26, 2017Investment linked policy

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What is an Investment Linked Policy?

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An Investment Linked Policy (or ILP as it is commonly known) is an insurance policy where you pay a single premium or regular premium, which is invested in an investment fund. The premium is used as follows: a) A portion is used to pay for the “mortality charges” to provide the life insurance cover. b) A portion is used to pay the expenses. c) The remainder of the premium is invested in the fund.