Why investment-linked policy sales have surged even as complaints rise

Simpler sign-ups and welcome bonuses may be driving demand for investment-linked policies in Singapore, industry experts say.

(File photo: iStock/skynesher)

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SINGAPORE: Sales of investment-linked policies (ILPs) have more than doubled in three years, even as claims over alleged misrepresentation and inadequate disclosure keep climbing.

Weighted new business premiums – a measure of new sales – have risen for three consecutive years after falling in 2022 amid rising interest rates and market volatility, said the Life Insurance Association (LIA).

They reached S$2.88 billion (US$2.2 billion) in 2025, up from S$1.31 billion in 2022, said the association’s executive director Chan Wai Kit.

“This represents growth of approximately 120 per cent over three years, including a 27.8 per cent year-on-year increase in 2025,” he said.

Over the same period, claims related to ILPs at the Financial Industry Disputes Resolution Centre (FIDReC) rose from 42 in 2022 to 164 in 2025. This included a spike in 2024, which saw 211 claims.

The industry mediator saw 104 claims in the first half of 2026, compared with 61 in the same period a year earlier.

The claims generally centre on allegations of market conduct, such as misrepresentation, inadequate disclosure of information about ILPs or inappropriate financial advice.

Over the years, the profile of complainants has shifted towards older age groups, said FIDReC chief executive Eunice Chua. Claims from those aged 61 and above made up 35 per cent of the total in the first half of 2026, up from 7 per cent in 2022.

Mediation sessions showed that many consumers lack a good understanding of the product, often assuming it is similar to traditional insurance or that returns and capital are guaranteed.

Some are also unclear about the fees and charges or the premium commitment term.

WHY HAS DEMAND INCREASED?

Two design changes to ILPs account for much of the recent growth, said Alex Lee, president of the Singapore Actuarial Society.

Traditional policies balanced protection and investment, requiring customers to complete lengthy health underwriting questionnaires, he said. Newer ones carry only minimal death cover, so they can be issued with few or no health underwriting questions.

The “welcome bonus” that many newer ILPs offer may also have spurred sales, said Mr Lee, referring to extra units in the fund that are given to the customer when they first purchase the policy, so they are holding more than they paid for.

He noted, however, that the bonus is typically funded through higher charges in the early years and comes with a minimum investment period.

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Mr Eddy Cheong, chief executive of insurance advisory Havend, said strong capital markets over the past decade may have made ILPs an easier sell.

“People like the idea of growing their wealth,” he said, adding that fixed deposits and endowment funds may be seen as too safe or too slow.

With hardly any long-term market corrections in recent years, people may also think investing is easy to navigate, he said.

Many customers are not investment-savvy and rely heavily on advisers, leading them to buy ILPs instead of investing directly, he added. Others may view the policies as “safer” because they are insurance products, even though they are not insurance.

WHAT BUYERS NEED TO KNOW

For those considering ILPs, the experts cautioned that r eturns and capital are not guaranteed – so money put into a policy may not grow and may even shrink.

LIA's Mr Chan said customers may mistake “capital guaranteed” for “death benefit”.

A death benefit is an assured insurance payout triggered upon death. It should not be conflated with a capital guarantee during the policy term, because the investment value fluctuates with market conditions, he said.

FIDReC's Ms Chua said consumers frequently assume the policies are “safe” like traditional insurance products and need no active monitoring. Returns also fluctuate based on what the customer chooses to invest in, she added.

Mr Cheong, whose company does not recommend ILPs to its customers, said consumers should be aware of fees and charges that can eat into returns even when markets do well.

ILP holders have to pay policy fees and fund fees, whereas those buying directly into the same investment fund only pay fund fees, he said. The policy fees are similar to what a consumer would pay for insurance, even though the ILP is more of an investment product, he added.

Red flags and what to look out for when buying an ILP

Given their complexity, consumers may not know what to look out for when assessing ILPs.

Ms Chua from FIDReC said consumers can ask advisers to point out key terms and should look out for phrases such as "not guaranteed", "projected" and "possible loss of the principal amount invested".

SAS' Mr Lee said consumers should first be clear on how much money they can commit regularly, when it might be needed and what it is for.

"Only then consider whether an ILP fits, compared with alternatives such as investing directly in funds or separating protection from investment," he said.

Some warning signs customers should look out for:

Pressure to sign quickly

Pushing one product without exploring other options

An adviser not taking the time to understand the consumer's financial objectives, risk appetite and investment horizon

Being sold mainly on the headline bonus or projected returns that may not be realistic

Being advised to surrender existing policies to fund the ILP

Being encouraged to increase premiums to reach a higher bonus tier

Not being shown the impact of surrendering the policy in the early years

Mr Cheong also pointed to administration charges payable every year for the stipulated period. In some cases, the charge is a percentage of the account value – meaning the more your account grows, the higher the amount charged.

Mr Lee also pointed to charges for early termination and premium holidays. Premium holidays are periods in which the policy owner can stop paying premiums without surrendering the policy. The insurer usually sells existing units to pay for any charges during this time.

Consumers should make use of the 14-day free-look period, which allows buyers to get a refund, to review documents before deciding, they said.

TRAINING FOR FINANCIAL CONSULTANTS

Income Insurance told CNA that complaints related to ILPs arise for various reasons and are not limited to market misconduct.

It said financial advisers are required to conduct a needs-based assessment and explain relevant information to customers before making a recommendation, and that it supports this through structured training and development programmes.

Manulife’s chief distribution officer Khoo Poh Huat said the company continues to reinforce appropriate advisory and disclosure standards through consultant training and customer communications.

“We are proactively working with customers to address their concerns and improve customer education around ILPs,” he said.

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业内专家表示，新加坡投资型保险的需求可能正在因注册流程简化和迎新奖励而增长。

（图片来源：iStock/skynesher）

这段音频由人工智能工具生成。

新加坡：投资连结保险（ILP）的销售额在三年内增长了一倍多，但与此同时，有关虚假陈述和信息披露不足的索赔却不断攀升。

人寿保险协会 (LIA) 表示，加权新业务保费（衡量新销售额的指标）在 2022 年因利率上升和市场波动而下降后，已连续三年上涨。

该协会执行董事陈伟杰表示，到 2025 年，其规模将达到 28.8 亿新元（22 亿美元），高于 2022 年的 13.1 亿新元。

“这意味着三年内增长约 120%，其中包括 2025 年同比增长 27.8%。”他说道。

同期，金融行业争议解决中心 (FIDReC) 受理的与投资贷款计划 (ILP) 相关的索赔案件从 2022 年的 42 起增加到 2025 年的 164 起。其中包括 2024 年的激增，当年索赔案件数量达到 211 起。

行业调解员在 2026 年上半年收到了 104 起索赔，而上年同期为 61 起。

这些指控通常集中在市场行为方面，例如虚假陈述、对投资连结保险计划的信息披露不足或提供不恰当的财务建议。

FIDReC首席执行官蔡恩熙表示，近年来，投诉者的年龄结构已逐渐向老年人群体转移。2026年上半年，61岁及以上人士的索赔占总数的35%，高于2022年的7%。

调解会议表明，许多消费者对该产品缺乏良好的了解，常常认为它类似于传统保险，或者认为收益和本金是有保障的。

有些人还不清楚相关费用和收费或保费承诺期限。

需求为何增加？

新加坡精算学会主席 Alex Lee 表示，ILP 的两项设计变更促成了近期的大部分增长。

他表示，传统保单兼顾保障和投资，需要客户填写冗长的健康核保问卷。而新型保单仅提供最低限度的身故保障，因此只需很少或无需健康核保问题即可签发。

李先生表示，许多较新的投资连结保险产品提供的“欢迎奖金”也可能刺激了销售，他指的是客户首次购买保单时获得的额外基金单位，因此他们持有的份额比他们支付的份额要多。

但他指出，奖金通常是通过早期较高的收费来支付的，并且有最低投资期限。

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保险咨询公司 Havend 的首席执行官 Eddy Cheong 先生表示，过去十年强劲的资本市场可能使保险联营产品更容易销售。

“人们喜欢财富增长的想法，”他说，并补充说，定期存款和捐赠基金可能被认为太安全或太慢。

他说，由于近年来几乎没有出现任何长期市场调整，人们可能也会认为投资很容易。

他还补充说，许多客户缺乏投资知识，严重依赖理财顾问，因此选择购买投资连结保险产品（ILP）而不是直接投资。另一些人则可能认为这类保单“更安全”，因为它们是保险产品，尽管它们实际上并非保险。

买家须知

对于那些考虑购买投资连结保险的人，专家提醒说，收益和本金无法保证——因此投入保单的资金可能不会增长，甚至可能会缩水。

人寿保险的陈先生表示，客户可能会将“保本”误认为“身故赔偿金”。

他表示，身故保险金是指被保险人身故时支付的固定赔付金。它不应与保单有效期内的本金保障混淆，因为投资价值会随市场行情波动。

FIDReC的蔡女士表示，消费者常常认为这些保单像传统保险产品一样“安全”，无需主动监控。她补充说，收益也会根据客户选择的投资标的而波动。

张先生的公司不向客户推荐投资连结保险产品，他表示，消费者应该意识到，即使市场行情良好，各种费用和收费也会侵蚀收益。

他表示，投资连结保险计划（ILP）的持有者需要支付保单费和基金费，而直接购买同一投资基金的人只需支付基金费。他还补充说，尽管ILP更像是一种投资产品，但其保单费与消费者购买保险的费用类似。

购买独立贷款计划 (ILP) 时需要注意的危险信号和事项。

鉴于其复杂性，消费者在评估独立贷款产品时可能不知道应该注意什么。

来自 FIDReC 的蔡女士表示，消费者可以要求顾问指出关键术语，并应注意“不保证”、“预计”和“可能损失投资本金”等短语。

SAS 的 Lee 先生表示，消费者首先应该清楚自己可以定期投入多少钱，什么时候需要这笔钱，以及这笔钱的用途。

“只有到了那时，才能考虑投资连结保险是否合适，并将其与直接投资于基金或将保障与投资分开等替代方案进行比较，”他说。

顾客应注意的一些警告信号：

尽快签约的压力

只推销一种产品而不探索其他选择

理财顾问没有花时间了解客户的财务目标、风险承受能力和投资期限。

主要依据可能并不现实的巨额奖金或预期回报进行推销

有人建议放弃现有保单以资助独立贷款计划（ILP）。

鼓励增加保费以达到更高的奖励等级

早期没有向人们展示放弃该保单的影响

张先生还指出，账户每年需缴纳一定期限的管理费。在某些情况下，管理费是账户余额的一定比例——也就是说，账户余额越高，收取的费用也就越高。

李先生还提到了提前终止保单和保费假期期间会产生的费用。保费假期是指保单持有人可以在不退保的情况下停止缴纳保费的时期。保险公司通常会出售现有保单份额来支付这段时间内产生的费用。

他们表示，消费者应该利用14天的冷静期（允许买家获得退款），在做决定前仔细查看文件。

财务顾问培训

Income Insurance 告诉 CNA，与投资连结保险相关的投诉出现的原因多种多样，并不局限于市场不当行为。

报告称，财务顾问在提出建议前，必须进行基于需求的评估，并向客户解释相关信息，报告还通过结构化的培训和发展计划来支持这一工作。

宏利金融首席分销官邱宝发表示，公司将继续通过顾问培训和客户沟通来加强适当的咨询和披露标准。

他说：“我们正在积极与客户合作，解决他们的疑虑，并提高客户对保险产品安全性的认识。”

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