An Investment-linked Policy (ILP) is a hybrid instrument comprising insurance protection and investment returns to help clients meet varying financial objectives at various life cycle stages by adjusting the proportion of their insurance premium into insurance and investment focus. Unfortunately, clients who invested in ILPs face negative experience such as poor investment performance, escalating insurance benefit charges depleting accumulated cash values, etc. This negative perception has resulted in a myriad of negativity against the ILP product class both from Financial Advisers Representatives (FARs) and clients.
Nothing is further from the truth – that there is a place that ILP can play an important role in client profiles that this product is suitable. For example, in providing non-death or disability trigger to fund a business buyout or the owner’s retirement, funding the tertiary education or start-up fund for a newborn child, as a flexible multiple-purpose plan for a young adult, etc.
This course is designed to address the common misconceptions of the product and equip FARs with the competency and confidence to structure and recommend them to suitable clients.
- Review of the basic features and characteristics of ILP products;
- Explain the importance of understanding the Business Cycle in the investment planning process and its impact on investment planning;
- Understand the various asset allocation methods and how they can be applied in the context of a financial adviser recommending ILP sub-funds to their clients;
- Differentiate between flexible allocation, core/satellite allocation and ETF portfolio strategies being common client objections;
- Be able to use ILP products to structure business propositions for 3 key client segments – a) young children, b) young adults, and c) business owners.
- There will be a 2-hours e-Learning program on “Ethical Principles: Reviewing FAA-G04 – GUIDELINES ON STANDARDS OF CONDUCT FOR FINANCIAL ADVISERS AND REPRESENTATIVES”
This is a one-day program conducted via Zoom or physical class (subject to COVID-19 restrictions). Upon successful completion of the program (including e-assessment and e-learning), participants will be awarded 7 non-core CPD hours and 2 core-FACPD hours.
Learners who completed this program will also be part of an exclusive alumnus, and gain access to our regular alumni meetings to be informed of the latest developments in the practice. There would also be workshops conducted by various practitioners in related fields.