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Comparison of Ordinary Life Insurance, Unit-Linked, Universal Life and Mutual Fund
| Comparison | General Life Insurance | Unit-Linked | Universal Life | Mutual Fund |
| Coverage | Fixed amount in % of the sum insured amount | Chance to receive greater coverage than the sum insured if the investment value adjusts upwards. | Chance to receive greater coverage than the sum insured if the investment value adjusts upwards. | No life coverage (only investment unit redemption value) |
| Health | Able to purchase health riders | Subject to the Company's conditions | Unable to purchase health riders | |
| Benefits to the Heirs | Directly payable to the heirs (named beneficiaries) | Must establish an inheritance fund/ administrator of an estate, or proceed through the court which can be complicated and time-consuming. | ||
| Investment Policy | Investment by the Company | Investment by the customer | Investment by the Company | Investment by the customer |
| Return/Risk | • Certain but low | • Uncertain but with the possibility of higher/lower returns • Medium to high risk (depends on the selected fund) | • Guaranteed minimum returns and potential for higher returns. • Low risk | • Uncertain but with the possibility of higher/lower returns • Medium to high risk (depends on the selected fund) |
| Tax Benefits • Personal Income Tax | Premium of the base policy + premium of health riders | Only the premium portion for expenses (cost of insurance + fees), excluding the investment portion | Premium | Based on the criteria of the funds (only RMF, SSF and TESG) |
| Withdrawal(Liquidity) | No Policy loan required (with interest) | Partial withdrawal available | Investment unit redemption | |
| Flexibility | - | Coverage adjustment, premium holiday and top-up premium | Fund switching | |
| Expense Disclosure | Not explicitly disclosed | Explicitly disclosed | ||
| Suitable for | Those who need life and health coverage without expecting investment returns | Those who are looking for convenience, an all-in-one solution for both life and health coverage, with the expectation of substantial investment returns | Those who need life and health coverage with guaranteed returns, along with the opportunity for potentially higher returns. | Those who have investment knowledge and can tolerate investment risks as well as expecting returns according to the risk acceptance level |
Remarks Tax benefits are according to the criteria specified by the Revenue Department.
This document is for sales purposes only. It is legally reserved not to be reprooduced or modified, partially or wholly. Coverage terms and conditions are specified in the insurance policy issued to the policyholder.
Things to know about unit-linked and universal life insurance
Warning : Please study the details of coverage, conditions and risks before making a decision to purchase insurance. Past performance of the fund is not a guarantee of future results. Investors should study information about mutual funds, especially the investment policy, risks and fund performance disclosed in various sources or should request more information from an investment advisor before making investment decisions. Investors should study information about tax benefits in the investment handbook.