Introduction
In today's dynamic financial landscape, investment-linked plans (ILPs) have emerged as powerful tools for individuals seeking to combine life insurance protection with investment opportunities. FWD InvestFirst Plus stands out as an innovative ILP designed to maximize your investment potential while providing essential coverage. This unique product offers transparent and fixed total charges, allowing you to focus on growing your wealth without worrying about escalating fees. With features like Booster Bonuses and Loyalty Bonuses, FWD InvestFirst Plus aims to accelerate your investment journey and help you achieve your long-term financial goals.
How ILPs Work
Investment-linked plans (ILPs) combine life insurance coverage with investment opportunities, offering a dual-purpose financial solution. With an ILP, a portion of your premium goes towards life insurance protection, while the remainder is invested in a range of funds chosen by you. FWD InvestFirst Plus allocates 100% of your regular premiums to investments in ILP sub-funds, maximizing your growth potential. You have the flexibility to select from over 50 well-diversified funds, allowing you to tailor your investment strategy to your risk tolerance and financial objectives. These funds span various asset classes and markets, providing opportunities to tap into tactical opportunities arising from changing market conditions. As the policyholder, you bear the investment risks and rewards, with the potential for higher returns compared to traditional life insurance policies.
Insurance Coverage
FWD InvestFirst Plus provides essential insurance coverage to protect you and your loved ones. The policy offers death benefit and flexibility in changing the insured person. Let's explore the key aspects of the insurance coverage provided by this plan.
Death Benefit
Comprehensive protection. Upon the insured's demise, the policy pays a benefit equal to 105% of the policy value. This benefit is applicable for up to 1 policy owner and 2 persons insured under the policy.
Changing Insured Person
Flexible coverage. Starting from the 25th month of coverage, you can change the person insured on your policy. The new insured must be at least 1 month old and under 60 years old, subject to insurable interest.
Investment Component
FWD InvestFirst Plus offers a robust investment component designed to help you grow your wealth over time. With a wide range of funds, professional management, and flexibility in fund selection, this plan provides ample opportunities to maximize your investment potential. Let's delve into the key aspects of the investment component.
Fund Selection
Diverse options. FWD InvestFirst Plus offers over 50 well-diversified funds, including dividend-paying funds, covering various asset classes and key markets worldwide. This allows you to create a portfolio tailored to your risk appetite and financial goals.
Fund Management
Expert oversight. The funds are managed by renowned global fund managers, ensuring professional investment strategies and risk management. This includes access to exclusive opportunities typically reserved for accredited investors.
Fund Switching
Flexible adjustments. You can make unlimited free fund switches, allowing you to adapt your portfolio to changing market conditions or personal circumstances without incurring additional charges.
Performance Tracking
Automated rebalancing. FWD offers a complimentary auto-rebalancing service that monitors and adjusts your investment portfolio based on your chosen allocation, helping maintain your desired risk profile over time.
Fees and Charges
Understanding the fees and charges associated with FWD InvestFirst Plus is crucial for making an informed decision. This plan offers a unique fee structure designed to optimize your investment growth potential. Let's break down the key charges you should be aware of when considering this investment-linked plan.
Initial Account Charge
Transparent pricing. This charge is payable throughout the premium payment term, ranging from 1.0% to 1.8% per annum based on your selected premium payment term. It's calculated on your annualized committed regular premium, not your account value.
Policy Charge
Ongoing management. A 1.2% per annum charge based on your annualized committed regular premium is applied from the 25th policy month to the end of the policy term. This charge remains constant after the premium payment term.
Fund Management Fee
Investment costs. The fund management fee varies depending on the selected funds and is already accounted for in the unit price. It's not an additional charge to the policy.
Surrender Charge
Early termination fee. If you surrender the policy before the end of the premium payment term, a charge will be levied based on the initial units account value and the policy year at surrender.
Flexibility and Customization
FWD InvestFirst Plus offers a range of flexible features that allow you to customize your policy to suit your changing financial needs. These options provide you with the ability to adapt your investment strategy and manage your policy effectively over time. Let's explore the key flexibility and customization options available with this plan.
Premium Top-ups
Boost investments. You can make additional investments through premium top-ups, with a minimum amount of S$3,000 or US$2,250. The total top-up is capped at 2 times your annualized regular premiums.
Partial Withdrawals
Access funds. You can make penalty-free withdrawals from the 25th policy month, with a minimum withdrawal amount of S$500 per transaction. This feature allows you to access your funds when needed without incurring charges.
Premium Holiday
Payment flexibility. After the first 24 months, you have the option to take unlimited premium holidays as long as there are sufficient funds in your account to cover policy fees. This provides financial flexibility during challenging times.
Adjustable Premiums
Customizable contributions. From the 25th month, you can reduce your regular investments as long as it meets the minimum investment amount. You also have the option to increase your investments up to your initial regular investment amount.
Conclusion
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