Part 1: Introduction to ILAS
Paper V — Investment-linked Long Term Insurance · Part 1: Introduction to ILAS
Further reading: Introduction to ILAS study notes →
What is the main characteristic of an Investment-linked Assurance Scheme (ILAS)?
Why: An Investment-linked Assurance Scheme (ILAS) is an insurance product that combines life insurance protection with an investment component. The policy value fluctuates according to the performance of the selected underlying funds, not a fixed return. The policyholder bears the investment risk and the principal is not guaranteed.
What is the key difference between an ILAS policy and a traditional life insurance policy?
Why: ILAS policy value is directly linked to the market performance of the underlying investment funds, carrying investment risk. Traditional life insurance (guaranteed or with-profits) typically offers more predictable returns not directly linked to funds. Both policy types provide life insurance protection, but differ in their return mechanisms.
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