CEILLI Training Slide PDF

Certificate
Examination In
Investment-Linked
Life Insurance
(CEILLI)
Tutorial
TMTDA/ADA/CEILLI/PPT/Eng/August2015
Certificate Examination In
Investment-Linked Life Insurance
(CEILLI) TUTORIAL
2
TMTDA Ground Rules
Be Punctual Switch Off/Silent No Smoking
Handphone
Maintain
No Side Talking Proper Attire Cleanliness
3
Course Objectives
This course will help participants to :
1.Learn and understand basic knowledge about

investment-linked life insurance
2.Prepare to sit for the CEILLI examination
4
CEILLI Chapters Overview
1. Introduction to Investment-Linked Life Insurance
2. Mechanisms and Features of Regular Premium Investment-Linked
Life Insurance
3. Mechanisms and Features of Single Premium Investment-Linked
Life Insurance
4. Considerations for purchasing an Investment-Linked Policy
5. Investment Considerations
6. Types of Investment Vehicles and Potential Risks
7. Common Types of Investment-Linked Funds
8. Pertinent Guidelines on Investment-Linked Business
9. Agents Professional Approach and Guidelines
5
Chapter 1
INTRODUCTION TO
INVESTMENT-LINKED
LIFE INSURANCE
Introduction to Investment-Linked
Life Insurance
The Life Insurance Association of Malaysia’s (LIAM) report
Total number of Investment- Distribution of annual premium that

Linked insurance grew between has gone into Investment-linked
2012 and 2013. Insurance policies has increased.
284,679,163,295 Sum assured (2013)
55.2%
48.4% (2013)
248,305,252,495 Sum assured (2012)
(2012)
Part of this growth is due to the fact that, Insurance companies in

Malaysia have stepped up their efforts in designing and offering very
good plans that continue to meet customers’ needs. 7
Life Insurance
Investment-Linked policy owners can choose :-
1. Amount of coverage needed
• With selected annual premium
2. Choose min. sum assured
• Based on age
• Opt for higher coverage amount
3. Accrue returns
• Long-term savings
8
Life Insurance
Investment
Pay linked Special

Fund Value of
premium Unitised
Policyholder managed Policy
to by Insurer Fund
purchase
fund
Directly
Protection linked Investment
 Death Performance
 TPD Depends
On
(Everyday
fluctuations
of market
forces)
TMTDA/ADA/CEILLI/PPT/Eng/August2015 9
Life Insurance
Investment-linked insurance offers investors policies

where:
•Premiums are used to purchase funds

•Value of policy linked to units in a special unitised fund
•Value of units directly reflect the value of the underlying fund
•Wide range of investment modes covering equity, fixed interest
and money market.
10
Life Insurance
RM3/unit
5,000 units x
RM3/unit =
RM 15,000
After 2 years
RM 5,000 for
5,000 units
(RM1/unit)
Lose all
RM0/unit premiums paid
and coverage
provided
Therefore, policyholders who choose to take Investment-Linked

policies must realize that they are also responsible to monitor the
performance of their policy to ensure a reasonable return, other than
the fund manager. 11
Life Insurance
Malaysia/Singapore
Malaysia/ Singapore UK U.S.A.
UK U.S.A.
/
Investment-
Unit-Linked Variable Life
Linked
Refers to the same thing
12
Sample Questions
1. What are the factors that have contributed to the steady growth
of the life insurance industry in Malaysia since 2000?
I. The Malaysian Government granting more flexibility to life

insurance companies to run business operations based on their
own management philosophies and at their own prudent
discretion.
II. Malaysia’s dynamic economic growth experience.
III. Life insurers designing and offering customer-centric plans.
IV. The introduction of investment-linked insurance and the
steady growth of this product.
A. I and II
B. II and III
C. III and IV
D. II
13
Sample Questions
2. Which of the following is the correct description of an

investment-linked life policy?
A.A participating policy offering lifetime coverage

B.A capital guaranteed policy
C.An endowment policy which provides minimum
returns
D.A policy offering protection while also investing in
funds which form the basis for returns to the policy
owner
14
Sample Questions
3. An investment-linked life insurance policy is also
known as the following in some parts of the world:
I. Mutual fund-linked policy

II. Unit-linked policy
III. Variable life policy
IV. Universal life policy
A. I, II, III and IV

B. I, II and III
C. II, III and IV
D. II and III
15
Sample Questions
4. Investment-linked funds are managed by
I. The insurer’s own professional managers in its internal

investment department
II. Fund managers/fund houses appointed by the insurer through
outsourcing
III. Outsourcing to the funds of unit trust companies since
investment-linked funds are similar to unit trust funds
IV. The insurer’s board of directors who can make special
decisions on the types of investment vehicles to offer to
policy owners

B. I
C. I and II
D. I and IV 16
Sample Questions
5. Since investment-linked insurance has an investment element, a
prospective policy owner is allowed to opt for
I. a nominal amount of sum assured of his selection.

II. no life protection at all.
III. at least the minimum amount of sum assured according to
age, basic premium paid and a formula set by the relevant
regulator.
IV. the sum assured offered by the insurer concerned based on its
internal underwriting guidelines in relation to the financial
status and circumstances of the intended policy owner.
A. I
B. I and II
C. III
D. IV 17
6. Which of the following statements are correct?
I. Policy owners of investment-linked plans should be made to

understand that they wholly bear the gains or losses from the
investment portion of their policies.
II. As responsible corporations, life insurers are obliged to be partly
responsible for any drastic drop in prices of funds under their
custody; thus, they have to bear part of the losses suffered by policy
owners if such incidents occur.
III. For investment-linked policies, an individual can invest in a
diversified portfolio with a sum as low RM1,200 per year. This is
possible as the overall collected premiums contributed by
investment-linked policy owners form a sufficiently large pool for
spreading over varied stocks or securities in the market.
IV. An average income earner may not possess ready sufficient liquidity
to invest in a spread of assets if he wants to do it in the open market
on his own.
A. I, III and IV
B. II and III
C. I and II
D. I, II, III and IV 18
Chapter 2
Mechanisms and
Features of Regular
Premium Investment-
Linked Life Insurance
Mechanisms and Features of
Regular Premium Investment-Linked
Life Insurance
Introduction
1)To understand the mechanisms and features of regular
premium (investment-linked) in order to explain the
product effectively to clients.
2)To understand the primary focus for regular premium

(investment-linked) is protection.
20
Life Insurance
1. Minimum Regular Premium

a) Minimum annual premium varies from RM1,200 to
RM1,800 depends on the product and the marketing
directions of an insurer.
b) Regular premium investment-linked insurance (RP-IL)

more inclined towards protection than investment.
21
Life Insurance
2. Allocated and Unallocated Premium

Add Investment
Returns
Allocated:
For Investments Less insurance
charges, policy
Insurance fee and fund
management fee
Premiums
Less agent’s
Unallocated: commissions and
For Insurer management
expenses
22
Life Insurance
Allocated Premium
• It is an account for buying units in vehicles earmarked by the
various funds offered by the insurer.
• Monthly COI, annual fund management fee, one-time policy
fee, other charges (nominal administrative, service charge)
will be deducted from this account.
• While the value of invested units called account value
continues to accrue in the policy.
• Ratio will increase
• First year 40 – 50%
• Rate increase until 7th year
• After 7th year, ratio will be 100% 23
Life Insurance
3. Regular and Ad Hoc Top-Up Premium

Regular Top-Up
• Purpose of TU = To enhance accumulation of units.
• Each TU to be deducted by 5% (upfront charge).
• Others placed into policy owner’s fund/s.
• Regular TU paid together with basic RP at each
due date.
24
Life Insurance
3. Regular and Ad Hoc Top-Up Premium

Ad Hoc Top-Up
• Pay any time.
• No limit to the amount and frequency.
• Keep a policy in force when account value gets
depleted
25
Life Insurance
4. Sum Assured Multiple Rule (SAM)
• Imposed by Bank Negara Malaysia (BNM).
• Min. amount of coverage based on basic annual
regular premium amount and age of new policy
owner.
• SAM factor for age range:
 (1-16) is 60
(56 and above) is 15.
26
Life Insurance
Example:
56 year old man wants to insure himself
= Rm 5000 a year.
He will have to be covered for at least

RM 75000 (5000 X 15).
16 years old minimum coverage is

RM 300,000 (5000 X 60).
**Regular premium excluded when calculating the min.

sum assured. 27
Life Insurance
Age SAM Factor

1 to 16 60
17 to 25 55
26 to 35 50
36 to 45 35
46 to 55 25
56 and above 15
28
Life Insurance

• Premium-Paying Rider (PPR) excluded for the purpose of
SAM calculation.
• Unit-Deducting Rider (UDR) caters for the deduction of
COI from account value.
• Treatment depends on 2 types of UDR:
a) Riders with Sum Assured (SA) payable on death
b) Riders without SA payable on death
29
Life Insurance
SAM formula for UDR:
Total Sum Assured
(Total Annual Premium – Notional Premium of Riders)
a) Example 1 (Riders with SA):

Man at age 30 wants:
1)RM 300,000 (basic coverage) + RM 300,000 (critical illness cov.)
= RM 600,000
2)RM 600,000/50 (SAM factor from 30 years old)

= RM 12,000 (Annual premium)
30
Life Insurance
b) Example 2 (Riders without SA)

To deduct notional premium.
Man at age 24:
1. set aside RM 3,600 a year for basic plan.
-Notional premium for rider = RM 200.
-The minimum SA for basic coverage will be RM 3,400
2.(Notional premium) X (multiple factor depending on age)

(RM 3,600 – 200) X 55 = RM 187,000
31
Life Insurance
5. Optional Riders
• Riders available either:
Premium-Paying Rider (PPR)
OR
Unit-Deducting Rider (UDR)
PPR requires extra regular premium to be paid for the
rider with the basic premium.
UDR need not extra regular premium but it entails the

additional COI charge for the rider to be deducted from
investment account value.
**Agency commissions are payable from PPRs, not from UDRs. 32

Life Insurance
6. Account Value
• Receive value of units if surrender policy.
• After deduction of tax and all applicable charges.
• Value of policy depends on 2 factors:
1. Value of each units
2. Number of units the policy has accumulated to
date
• Number of units with every premium invested &
value of each unit = Value of policy
• However, value of policy may depreciate if fund’s
investments fall in value. 33
Life Insurance
7. Partial Withdrawal, Surrender and Charge
• Most insurer do not limit the frequency of withdrawal.
• But remaining account value must not go below a certain
minimum (e.g. RM 1,000).
• Depletion of account value due to withdrawals may cause
balance to be insufficient to meet higher COI at older
age.
• Alternative option:
a) Make ad hoc Top Ups
b) Surrender of policy
- Depending on number of years of a policy before
cut-off point.
34
Life Insurance
8. Fund Switching and Switching Fee

• Switch part of all their investment from one fund to
another fund
• Switching between funds may
o Be offered free
or
o Free for only a limited number of switches for a
period of time
35
Life Insurance
9. Premium Holiday
Options:
• Using the account value to cover premiums when due
premium is not paid.
• Deduct COI and other management charges
• Allowed to cover basic sum assured only - riders will
lapse UNLESS account value is sufficient to cover both
BSA and riders
36
Life Insurance
10.Free-Look Period
• 15 days free look period from date of policy delivery.
• To cancel plan within this period, the insurer will
refund :-
Unallocated premiums
value of units - allocated at the unit price at the
next valuation date
Insurance charges and policy fee that have been
deducted
37
Life Insurance
11. No Lapse Guarantee Period

• Investment-Linked (IL) policy WILL NOT LAPSE in the first
few years.
Condition?
1. Regular premium has been paid without fail

2. No premium holiday has been affected
3. No changes have been effected to the policy
(including partial withdrawal and fund
switching)
38
Life Insurance
12. Death Benefit Mechanism

• Basic sum assured plus the accrued account value.
• Thus, DB amount cannot be lesser than the basic SA
Dual Pricing and Single Pricing
39
Life Insurance
13. Dual Pricing and Single Pricing
• Dual pricing = bid-offer spread (5% difference).
 Offer price per unit (unit purchase price)
 Bid price per unit (unit sale price)
• Single pricing = either acquisition or disposal of units in
a fund is at the same price per unit.
• Charges for acquisition (upfront charge) or disposal
(back end charge).
40
Life Insurance
14. The Long Horizon
• Leverage cumulative effect from protection and
investment perspectives.
• Protection amount (Death benefit) increases over the
years
(SA coupled with the cumulative account value)
• Investment in long run, the Dollar Cost Averaging
creates positive impact on the cumulative effect of the
account value.
41
Life Insurance
15. Dollar Cost Averaging
Concept:
• Prices , acquire more units at lower prices
• Prices , units acquired at lower prices will appreciate
in value.
• Means leveraging
price fluctuations.
42
Life Insurance
16. Spread-Out Risk among Varied Assets
• Overall impact is the averaging effect on the price of the
fund with the spreading out of risk.
17. Retirement plan, Medical plan, and Education

plan
43
Life Insurance
1) Wife
& 1 Son
4)Taxable
2) Active
income
2013 = Mr. A unit trust
agent
Rm50k
3)No EPF,
no life
insurance
44
Life Insurance
17.Retirement plan, Medical plan, and Education plan
Taxable
Rm 50k income, according to tax
income
2013 = = rate (as of 2013)
tax payable would be Rm 2,850
Rm50k
45
Life Insurance
17.Retirement plan, Medical plan, and Education plan
BUT ……
Buy investment-linked life plan for retirement income
• medical plan cover medical expenses & education plan for

child’s education.
• Pay RM 6,000 a year for regular premium (ILP), protected for
RM 300,000.
• Accumulating units in an investment fund
• Paid RM 1,500 a year for qualified investment-linked med plan
• Paid RM 1,500 a year for investment-linked educational plan
• RM 6,000 + RM 1,500 + RM 1,500 = RM 9,000 tax relief.
Chargeable income would be RM 41,000 instead of RM 50,000.
46
Sample Questions
1. Which options are open to policy owners of a
regular premium investment-linked plan?
I. A policy owner may opt for higher a sum assured than the
minimum amount stipulated by the Sum Assured Multiple rule.
II. A policy owner can pay top-up premium to accelerate the
accumulation of the account value in the policy.
III. A prospective policy owner can apply to combine a single
premium plan with a regular premium plan into one policy.
IV. A prospective policy owner can select the death benefit based
on either the sum assured or the account value, whichever is
higher.
A. I and II
B. I, II and III
C. II and III
D. I, III and IV 47
Sample Questions
I. Top-up premiums can either be paid on a regular basis or at
any time.
II. Most insurers impose a minimum amount for both regular top-
ups and ad hoc top-ups.
III. Most insurers allow ad hoc top-ups once a year and impose a
maximum amount.
IV. An upfront charge, normally around 5 per cent, is deducted
from each top-up.
A. II, III and IV

B. I, II and IV
C. I and IV
D. I,II,III and IV
48
Sample Questions
3. A female, aged 30 years, has budgeted to set aside

RM3,000 a year for a basic regular premium
investment-linked plan with a Unit-Deducting
Hospitalization Rider. According to the SAM formula, the
multiple factor for her age is 50 times. How would you
calculate the minimum sum assured for the basic plan?
A.RM3,000 minus the notional premium for the rider, multiply by 50.
B.RM3,000 multiply by 50.
C.RM3,000 multiply by 55 times.
D.RM3,000 minus the notional premium, then multiply by 55 times.
49
Sample Questions
4. Which of the statements below are correct?
I. All life insurers impose an early partial withdrawal charge and an
early surrender charge.
II. High partial withdrawals may cause the future account value to be
insufficient to cover the higher cost of insurance at older ages.
Therefore, it is prudent for a policy owner to make ad hoc top-ups to
replenish the units and the account value.
III. Depending on the practices instituted by individual life insurers, all
fund switches may be processed free of charge, or be free for the
first switch or first few switches within a policy year and a fee is
charged for subsequent switches.
IV. The investment risk profile of a young investor or policy owner may
likely change from the aggressive category to the conservative
category as he advances in age; hence, he may want to progressively
shift more of his equity assets to fixed income or bond fund until he
gets close to retirement age.
A. I, II, III and IV C. I, III and IV

B. II and III D. II, III and IV 50
Sample Questions
5. Identify the correct statements from those given below.
I. The free-look period is 15 days commencing from the date of delivery of
policy contract to the policy owner.
II. The no-lapse guarantee clause stipulates that as long as premiums are paid
without fail by the grace period and there was no previous premium holiday
or partial withdrawal, the regular premium investment-linked policy will
never lapse over the entire policy tenure although the account value may be
insufficient to cover the cost of insurance at any point in time.
III. The no-lapse guarantee clause stipulates the regular premium investment-
linked policy will not lapse in the first few years (e.g. 2 years) even though
the account value is not sufficient to cover the cost of insurance, provided:
• All premiums were paid during the period
• No premium holiday was exercised during the period
• There was no partial withdrawal or fund switching during the period
IV. As the basic death benefit of a regular premium investment-linked policy is
basic sum assured plus account value, the life insurer will continue to deduct
the cost of insurance for the basic coverage as long as the policy remains in
force.
A. I, III and IV C. II, III and IV
B. II and III D. I, II, III and IV
51
Sample Questions
6. Select the correct statements from the following.
I. The Dollar Cost Averaging phenomenon leverages the long term or
the acquisition of more fund units when prices are down and the
appreciation of units already acquired when prices go up.
II. Some assets in a fund may perform well in a given short period while
some may not, but the overall impact is the averaging effect due to
the spreading out of risk. With prudent management by fund
managers, the unit price is likely to be higher in the longer run.
III. The maximum tax relief for a qualified regular premium investment-
linked medical plan and an education plan is RM3,000 a year. If a
policy owner has both, the combined limit is also RM3,000.
IV. Whether a policy owner has a qualified regular premium investment-
linked medical plan or an education plan, or both, he qualifies for a
tax relief of up to RM6,000 a year.
A. I, II and IV
B. I, II and III
C. I and III
D. II and IV 52
Chapter 3
Mechanisms and
Features of Single
Premium Investment-
Linked Life Insurance
Mechanisms and Features of Single Premium
Introduction
Priority for policy owners of single premium investment-linked
would be investment, protection second.
1. Minimum Basic Single Premium
• RM5,000 to RM20,000
2. One-Time Unallocated Premium Charge
• Unallocated portion spans over the first 6 years in reducing
ratios.
• Normal charge is around 5%.
• Top-ups = same charge.
• If 5% is the upfront charge, the balance of 95%will acquire
units in fund/s.
54
3. Sum Assured Formula

• Basic sum assured = 125% of single premium (SP) paid.
• Allows insurers lower it to 105% of SP.
4. Death Benefit Formula

• All TUs excluded from BSA formula.
55
5. Cost of Insurance Deduction and Sum at Risk

Mechanism
• If account value exceeds BSA, DB will be the account value.
• Unless account value is still below BSA, COI will be deducted.
• COI deduction cover the shortfall between account value and SA.
• Shortfall difference = Sum at Risk (SAR)
• Account value increases, COI reduces. If account value exceed
basic SA, COI cease. If account value drops again below BSA,
COI deduction resume.
56
57
Sample Questions
1. Single premium investment-linked insurance is said to be more
inclined towards investment than protection because
A. generally, about 95% of the single premium is allocated for

investment in fund units.
B. the policy owner has the discretion to opt out of any
protection coverage so that no cost of insurance will be
deducted from the account value.
C. the usual sum assured is 25 per cent above the single premium
outlay and may be lowered to 5 per cent above the premium
for older age groups, i.e. RM125,000 for SP of RM100,000,
RM105,000 for senior ages with the same premium.
D. once the account value exceeds the basic sum assured, the
death benefit will be the account value, not inclusive of the
sum assured.
58
Sample Questions
2. Mrs. A, aged 45, signs up for a single premium investment-

linked plan by paying an initial RM100,000. Six months
later, she pays another RM100,000 as top-up. The total sum
assured in her policy after payment of the top-up is
A. RM250,000.
B. RM125,000.
C. RM205,000.
D. RM210,000
59
Sample Questions
3. Which of the statements below are correct regarding single
premium investment-linked insurance?
I. Most insurers set their minimum basic single premium as
ranging from RM5,000 to RM20,000, depending on product
design.
II. All insurers set the minimum basic single premium at
RM5,000.
III. Top-up premiums, if any, also bear the same normal upfront
or unallocated premium charge ratio of around 5% as the
basic single premium.
IV. Cost of insurance will be deducted regardless of whether the
account value is above or below the basic sum assured at any
point in time.
A. I, III and IV
B. I and III
C. II and IV
D. II, III and IV 60
Sample Questions
4. Which statement/s relate(s) to the application of cost of insurance
(COI) in single premium investment-linked insurance?
I. COI is based on the sum assured or account value, whichever

is higher.
II. When the account value of a single premium investment-
linked policy is still below the sum assured, the shortfall gap
between the two levels is called sum at risk.
III. Deduction of COI is based on the shortfall amount from the
account value level to the sum assured level.
IV. COI is based on the difference between the sum assured and
account value at any point in time.
A. I
B. III
C. II and III
D. IV
61
Sample Questions
5. Top-ups for single premium investment-linked plans are
encouraged when
I. the market is on the upturn and unit prices are rising.

II. a market downturn sets in not long after policy inception,
thus causing the sum at risk to prolong longer than expected,
based on the initial premium outlay.
III. the nation is experiencing a period of strong economic or GDP
growth.
IV. the policy owner believes in the impact of Dollar Cost
Averaging and wants to leverage that to boost the account
value instead of relying on just one single outlay.
B. I and III
C. II and IV
D. I, II and III
62
Sample Questions
6. The few mechanisms and features of single premium investment-linked
plans which differ from regular premium investment-linked plans are:
I. The sum assured formula for single premium plans is different than
that for regular premium plans.
II. The death benefit formula for single premium plans is not guided by
the same minimum Sum Assured Multiple rule applicable to regular
premium plans.
III. The allocated premium ratio for single premium plans is different
from that for regular premium plans.
IV. While the policy is kept in force, the cost of insurance deductions
for single premium plans may not be continuous because the
formula is based on sum at risk, unlike regular premium plans which
are based on sum assured.
A. I and IV
B. I, II, III and IV
C. II, III and IV
D. I, III and IV 63
Chapter 4
CONSIDERATIONS FOR
PURCHASING AN
INVESTMENT-LINKED
POLICY
Considerations for Purchasing an
Investment-Linked Policy
Benefits
Expertise
Flexibility
Transparency Benefits
Access
Pooling/
Diversification Administration
65
Benefits
1) Pooling or Diversification
 Offer an access to a “pooled” or “diversified portfolio”
of investments.
 The fund normally consist of wide range of equity

stocks and fixed income securities.
 A well-diversified investment-linked fund has better

risk characteristics than a less-diversified one.
66
Benefits
2) Flexibility
Premium holiday
Change level of
Single premium
premium payment
top-ups
Flexibility
Switch between funds Withdrawals
Change level of sum assured
67
Benefits
3) Expertise
• Professional fund managers
4) Access
• Gain access to well diversified investment-linked
funds
5) Administration
• Day-to-day administration of investment.
• Keep track of investment through the unit statement
provided regularly and the unit price published in
financial pages of major newspaper.
68
Benefits
6) Transparency
• Transparency relating to official sales materials
presented at the point of sale.
• Transparency details example:
Proposal Name of basic plan, names of riders, coverage amounts, overall
summary premium.
Descriptions of
benefits and For plans and riders
excluded risk
Statement of Cost Of Insurance (COI) will be levied monthly and deducted
Cost Of from fund/s up to maximum tenure.
Insurance (COI)
Statement of PH will be applied when due premium is not received
Premium
Holiday (PH)
Statement of Based on assumed rates of return
Investment
returns 69
Special Policy owner can maximize the investment element by opting
Advisory to pay the minimum basic annual premium and the balance as
Highlights regular top-up.
Can increase sum assured without a corresponding increase in
annual premium.
Policy may lapse if insufficient account value for deduction of
charges due to higher COI.
Can add top-ups or reduce basic sum assured (within min. Sum
Assured Multiple rule) in the later years to maintain policy.
Charges may change by insurer, giving 3 months’ notice.
COI increases with attained age.
All investment risks are borne by the policy owner.

70
Elements Breakdown of annual premium and coverages
contained in
the table of Selected fund/s and proportion ratio, if more than 1 fund
illustrated (in %)
values and Amount of allocated and unallocated premium according
benefits to policy years. Support by a table of allocated premium
are: ratio for first 6 years
Basic sum assured
COI amount for basic sum assured and riders
Amount of other charges – policy years
Amount of annual fund management fee
Projected cumulative account value – high and low

scenario
Projected cumulative death benefit amount
Commission amount 71
Assumed With high and low scenarios for first and after 20
rates of years according to Bank Negara Guidelines
return of
funds
Actual Funds in the past 5 years
historical
returns
Short Underlying assets of each available fund

descriptions
Policy Policy owner to read PDS and general terms and

Disclosure conditions
Sheet (PDS)
Requirement Acknowledgement upon reception and understood

for intended the contents of sales quotation and PDS.
policy owner
to sign
72
Risks
1) Investment Fluctuations
 The sum assured guaranteed but the value of units is not
guaranteed.
 Risks of short-term fluctuations in cash value
2) Charges
 The administration fee, insurance charge, fund management
fee are usually not guaranteed.
 Subject to regular review and can be changed by giving a
written notice over a specific period e.g. 3 months
73
Regular Premium
No Whole Life Participating Plan
Investment-Linked Plan
1 Whole life coverage up to age Whole life coverage up to age 100
100
2 Account value is not guaranteed Cash value is guaranteed
3 Surrender value based on an Surrender value based on cash
accrual in account value payable value plus vested bonus or
dividend
4 Death benefit payable from sum Death or maturity benefit
assured plus account value. payable from sum assured plus
Maturity benefit is payable from vested bonus or dividend
account value.
5 Policyholder can choose from Investment instruments by
funds insurer
Regular Premium
6 Policyholder can choose a Premium amount is based on
higher sum assured with same sum assured
premium
7 Can add riders via COI Has to pay extra premium for
deduction from account value. riders
8 Top-up premium allowed Top-up premium not allowed
9 Partial withdrawal from No partial withdrawal allowed
account value from cash value except
surrender value of bonus or
dividend
10 No policy loan feature Policy loan available with
interest
75
Regular Premium
11 Can choose to request PH Automatic premium loan
feature with interest
chargeable
12 Tax relief Tax relief
13 Min. age 18 apply own life Min. age of 10-15 require
parental consent.
76
Sample Questions
1. The benefits of an Investment-Linked policy are:
I. It provides access to a diversified investment

portfolio. Thus, it has better risk characteristics
than a non-diversified portfolio.
II. It offers flexibilities
III. Fixed nominal charges are levied on the policy.
IV. The life insurer insulates the policy owner against
market risks.
A. I and II.
B. II and IV.
C. I and III.
D. I, II, III and IV.
77
Sample Questions
2. When an investment-linked policy reaches maturity,
the maturity value will be
A. The basic sum assured and the account value.

B. The account value.
C. The account value plus terminal/maturity bonus.
D. The basic sum assured and the account value plus
terminal/maturity bonus.
78
Sample Questions
3. What are two similarities between a regular premium investment-
linked plan and a whole life participating plan?
I. Both plans provide lifetime coverage up to maximum age 100.

II. Both plans allow the addition of rides without additional
premium.
III. Both are entitled to the same income tax relief treatment for
premiums paid.
IV. The minimum age for an individual to apply on own life, and not
as juvenile application arrangement, is age 16 for both
products.
A. I and II.
B. II and III.
C. I and III.
D. I, II, III and IV.
79
Sample Questions
I. The minimum age for applying a regular investment-linked

policy on own life is age 18 last birthday.
II. A minor aged 16 last birthday who is applying for an
investment-linked policy on own life needs parental consent.
III. A minor aged 16 last birthday can apply for a whole life
participating policy without parental consent.
IV. Minors aged 10 to 15 last birthday can apply for a whole life
participating policy with parental consent.
A. I, II, III and IV.

B. I, II, and III.
C. I and III.
D. I, III and IV.
80
Sample Questions
5. As the sales illustration document printed by any life
insurer is meant for reference and view by a prospect, a sales
intermediary is expected to observe certain rules.
These are: The sales intermediary must
I. get the new policy owner to sign the illustration as
acknowledgement of having understood the contents.
II. get the new policy owner to sign the policy disclosure sheet
and also to sign it himself to declare that proper
presentation has been carried out and the non-guaranteed
elements have been explained.
III. highlight that all investment risks are borne by the policy
owner, that all fees and charges may be changed by the
insurer giving 3 months’ notice, and that the cost of
insurance increases with attained age.
IV. explain that the projected returns may be deemed likely
returns of the selected funds based on the past 5 years’
historical performance.
B. I, II, and III.
C. I, III and IV.
D. I and III.
81
Sample Questions
6. Which of the following statements regarding a life insurer’s sales
illustration/quotation document are correct?
I. The projection of future returns is based on the past 5 years’

performance experience of a specific fund or funds proposed
to the prospect.
II. Projected returns are based on assumed rates for the high
and low scenarios of the specific fund/s.
III. Normally, the actual historical returns of the various offered
funds in the past 5 years are also shown for the purpose of
transparency.
IV. Projection of values is based on assumed rates of return up
to 20 years.
A. I and III.
B. II, III, and IV.
C. I, III and IV.
D. II and III. 82
Chapter 5
INVESTMENT
CONSIDERATIONS
Investment Considerations
Introduction
1. There is an increasing need for sound and proper
advice on how, what, when, where and why
investments must be done.
2. Client should know the basic considerations in
order to make a sound judgment on investments.
84
1. Investment Objectives
2. Availability of Funds
3. Risk or Security
4. Investment Horizon
5. Accessibility of Funds
6. Taxation Treatment
7. Investment Performance
8. Diversification
85
Fundamental Investment Objectives
Safety Growth Income
- Returns – To hold the

conservative stocks for a long To see a steady
time to derive stream of income
- Try its best to profits from the
create a hedge growth of the
against inflation investments.
86
Other Investment Objectives
• Comfortable standard of living

• Funds for dependents
• Funds for death
• Income in retirement
• Improvement in financial position
• Funds for children’ education
• Hedging inflation
• Liability cancellation
• Achieving Financial Freedom
87
• Clients have to do analysis to make sure that they:
1. Have enough money to put aside for investment.
2.Will be able to follow through with the

investments.
88
Warrant Buffet advises

“you need to first set aside money for
investment before thinking about
spending it.”
89
There are two types of fund analysis :
a. Simple Monthly
Cash Flow
Analysis b. Simple Net Worth
Analysis
90
a) Simple Monthly Cash Flow Analysis
No Income RM Expenditure RM
1. Salary 3,000.00 Housing Loan Payments 1,000.00
2. Rental 500.00 Groceries and Utilities 750.00
3. Commissions 1,000.00 Childcare/Parents’ allowance 500.00
4. Others 1,000.00 Education Expenses 250.00
5. Loans 2,000.00
(Car, Credit Cards, etc.)
6. Insurance Premiums 500.00
7. Savings 500.00
8. Misc. 1,000.00
TOTAL 7,500.00 6,500.00
Income – Expenditure = RM 3,500- RM2,500
= RM 1,000
*Client can utilize the RM1,000 to fund an investment plan. 91
b) Simple Net-Worth Analysis
No Assets RM Liabilities RM
1. House 220,000.00 Housing Loan Balance 200,000.00
2. Car 30,000.00 Car Loan Balance 35,000.00
3. EPF 20,000.00 Credit Card Balance 5,500.00
Savings
4. 1,500.00 Personal Loan Balance 10,000.00
Account
Insurance
5. 20,000.00 Others 15,000.00
Cash Value
TOTAL 291,500.00 265,500.00
Assets – Liabilities = RM 240,000 - RM200,000

= RM 40,000
*Client can utilize the RM40,000 to fund an investment plan. 92
3. Risk or Security
Risk/ Return Trade-off
Returns are directly proportional to the risk in investment.
Risk
Return
93
3. Risk or Security
The difference between high risk and low risk:
Risk Description
High risk/ A mutual fund or stock can potentially
aggressive achieve higher returns because of
greater volatility.
Low risk/ A mutual fund or stock will trade close
conservative to its historical average prices and will
tend to be quite stable.
94
3. Risk or Security
Know your Investment risk profile (e.g. age, family
situation, experience ) to determine how best to allocate
your savings amongst various risk asset.
Risk Averting Risk Indifferent Risk Taking/Seeking

(Conservative) (Neutral) (Aggressive)
INDIVIDUALS REACT TO RISK DIFFERENTLY
LOW OR NO RISK MODERATE RISK

HIGH RISK
95
3. Risk or Security
What is the concept of “risk” in investment?
1.Is the Volatility or how widely the price of a stock or
mutual fund fluctuates.
2. Fluctuations Risk, because you stand to make

and also lose more money, compared to a fund that doesn’t
fluctuate as wildly.
96
4. Investment Horizon
1. The length of time a sum of money is expected to
be invested (when and how much money will be
needed), or
– can be defined as the total length of time that an
investor
– expects to hold a security or a portfolio.
2. Generally, the shorter the investor's horizon, the

lower the risk he/she should be willing to accept.
97
5. Accessibility of Fund
• A client will need the money to settle a specific event.
With this in mind, we can divide the accessibility of funds
into 3 components :
1. The time when the client needs the fund.
2. Cost/ penalty that the client has to pay if client exits
early.
2. Initial/set up cost in setting up or buying into the
investment.
98
6. Taxation Treatment
• Knowing the implication of tax treatment for the
particular investment portfolio is important before
the investment decisions are made.
• It would have the impact on the actual return.
• No special tax laws on investment-linked
insurance. The tax status is the same as traditional
with profit life insurance products.
99
7. Performance of the Investment
The performance depends on the following factors: :
Country’s and global economic factors.
The competencies and capabilities of the

management team.
The invested company’s level of costs.

Past experience.
History of the company.
Life cycle of the investment.
100
8. Diversification
Diversification is the process of investing across different
asset classes and across different market segments.
Minimize Risks & Maximize

Returns
“Do not put all your eggs in one basket”

Important:
Diversification DO NOT completely eliminates the risk of
investing in stocks in a portfolio..
101
Sample Questions
1. An example of investment in Money Markets is
A. 5-Year Bond.
B. Currencies and Forex.
C. Treasury Bills.
D. Savings account.
102
Sample Questions
2. People generally want to invest
I. to lead a comfortable lifestyle.

II. to be comfortable during retirement.
III. to amass great wealth.
IV. to provide adequate funding for their children’s
education and their upbringing.
A. II, III and IV.

B. I, II, and III.
C. I, II and IV
D. II, III and IV.
103
Sample Questions
3. Which statement below explains what a simple
(current) net worth analysis involves?
A. The forecast of a person’s future net wealth and

financial status (e.g. middle income, upper middle
income, etc.)
B. A calculation of the sum of assets in current monetary
terms that a person presently owns, not including any
future inheritance
C. The total sum of all assets owned by a person in
present value minus the existing total sum of all
liabilities he is obliged to settle. The balance, if any, is
his present net worth to his family in the event of his
early demise.
D. A personal plan outlining the targets for values of
current and future assets to be achieved at a certain
time in the future.
104
Sample Questions
4. The main purpose of an agent conducting a risk profile
on his potential client is
A. to assess whether the potential client is willing to

use a major portion of his savings or liquid assets
to purchase a large investment-linked plan.
B. to help the potential client understand his own
risk profile, i.e. whether he has conservative,
aggressive or balanced risk characteristics, and
also to consider the type of asset categories
suitable for his profile.
C. to assess whether the potential client will be
attracted to the product/s being offered.
D. to assess whether the potential client is willing to
forego some of his existing liquid assets in order to
buy an investment-linked product.
105
Sample Questions
5. Which of the statements below are true?
I. A person’s investment horizon is the length of time that he is

prepared to hold a particular asset before he liquidates it.
II. The investment horizon of an individual, among other
factors, also depends when he needs liquidity in the future
date for specific objective/s.
III. The cost or penalty that an investor has to pay in the event
he needs to liquidate the asset earlier than expected also
has a bearing on his choice of investment horizon.
IV. It is pertinent for an agent to strike a clear understanding
with a potential client as to how much the latter is willing to
set aside or commit for acquiring an asset
B. I, II, and III.
C. II, III and IV
D. I, II and IV.
106
Sample Questions
6. Which of the following statements is correct?
A. Diversification means spreading out investment in

different asset categories or fund types.
B. Diversification not only means spreading out
investment in different asset categories or fund
types, but also acquiring various assets of the
same category or fund type.
C. Investment-linked funds in Malaysia confine the
investment diversification to assets in the country
as a way of discouraging the outflow of funds.
D. When the stock market shows signs of going up, an
investor should give key focus to leverage the
market trend and switch all fixed income or bond
assets to equities.
107
Chapter 6
TYPES OF
INVESTMENT
VEHICLES AND
POTENTIAL RISKS
Types of Investment Vehicles and
Potential Risks
Common instruments available include:
1 Cash and Deposits
2 Fixed Income Securities
3 Shares
4 Unit Trusts
5 Properties
6 Real Estate Investment Trusts
7 Sukuk
8 Bonds
9 Capital Guaranteed Funds
10 Commodities
109
Potential Risks
1) Cash and Deposit
1. Refers to all liquid instruments that carry little
or no risk.
2. Cash has no value in itself. It is of value only as a
medium of exchange.
3. The definition of cash in this course will include
short-term debt instruments :
 Treasury Bills
 Bank accounts
110
Potential Risks
1) Cash and Deposit
a) Treasury Bills
 Tax alone is insufficient to finance amenities such as roads and
schools, government come up with borrowing on a short-term
basis.
 Treasury Bills are short-term government funding vehicles
issued on a regular basis with repayment within a year.
 They are :
» Issued by Bank Negara Malaysia
» Safest type of investments
111
Potential Risks
1) Cash and Deposit
a) Treasury Bills
Issued at discount rate
Central Bank Institution
Discharged at face value
Short Term investment.

Usually < 1 year
The government guarantees the investment.
I.e: No risk
(Exception: Political instability)
112
Potential Risks
1) Cash and Deposit
b) Bank Accounts
 These are fixed deposits placed with banks for
fixed periods with fixed interest rates for that
period.
 For example: Current Accounts, Fixed Deposits,
Time Deposits and Offshore Accounts.
113
Potential Risks
1) Cash and Deposit
b) Bank Accounts
 The factors that may influence the choice of
deposits:
1. Funds available for investment.
2. The duration the funds can remain in the account.
3. Will there be emergency withdrawals.
4. Prevailing market conditions.
114
Potential Risks
1) Cash and Deposit
b) Bank Accounts
Deposit insurance:
 Established by the Government to protects
depositors against the loss of their insured
deposits
 Launched in September 2005
 Managed by PIDM
115
Potential Risks
1) Cash and Deposit
b) Bank Accounts
(I) PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM):
• A government agency established under the Akta
Perbadanan Insurans Deposit Malaysia 2005.
• OBJECTIVES:
1. Administer a deposit insurance system.
2. Provide insurance against the loss of part or all
of deposits of a financial institution.
3. Provide incentives for sound risk management in
the financial system.
4. Promote and contribute to the stability of the
Malaysian financial system. 116
Potential Risks
1) Cash and Deposit
b) Bank Accounts
PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM):
The benefits of deposit insurance are:
1.The protection is automatic.
2.PIDM protects depositors holding deposits with
banks.
3.There is no charge to depositors for this insurance
4.Should a bank fail, PIDM will promptly reimburse
depositors their deposits.
117
Potential Risks
2) Fixed Income Securities
• It is a security or certificate showing that the investor
has lent money to the issuer, in return for fixed
interest income and repayment of principal at
maturity.
 Investor lend money to issuer (government or
company)
 Return in fixed interest
 Capital repayment at maturity
 Regarded as IOUs
 Traded in secondary market
118
Potential Risks
1. Active secondary market
• Can be bought and sold at anytime
• Opportunity to realize capital gains
2. Inactive secondary market
• The investors’ money is locked up for the full life
span of the security.
119
Potential Risks
There are three types of Fixed Income Securities:
a) Government Bonds
b) Corporate Bonds
c) Preference Shares
120
Potential Risks
a) Government Bonds
 It is a financial instruments used by the
government to borrow money from the public. The
investor gets the interest + capital on maturity.
Advantages vs. Disadvantages
No. Advantages Disadvantages
1 Very safe. In times of high
inflation, capital can be
eroded.
2 Guaranteed
marketability and
income for the future. 121
Potential Risks
b) Corporate Bonds
 It is a financial instruments used by the companies

to borrow money from the public to fund the
growth of their companies operations.
 There are three categories of Corporate Bonds:
 Debenture stocks
 Loan Stocks
 Convertible Stocks
122
Potential Risks
b) Corporate Bonds
Debenture Stocks – Secured Loan
• Trustees are appointed to supervise the way the
company performs
• In the event of a default, the trustees act for
the investors.
• Interest rates for corporate bonds tend to be
higher than government bonds and the security
is lower than government bond.
123
Potential Risks
b) Corporate Bonds
Loan Stocks – Unsecured Loan
• The investor may or may not get back his capital
depending on the company’s performance.
• Compared to debentures, loan stocks are much less
secure and therefore carry a higher interest rate.
124
Potential Risks
b) Corporate Bonds
Convertible Stock
•Convertible to ordinary shares of a company on a fixed
date
•Become part of an owner & entitled to profits through
dividends declaration
125
Potential Risksc
b) Corporate Bonds
Advantages and Disadvantages of Corporate Bonds

Advantages Disadvantages
1 Higher return than More riskier than
government bonds government bonds
2 More marketable and
can be sold for capital
gains
126
Potential Risks
3) Shares
1. A shareholder owns part of the company and
possesses voting right.
2. Shareholders are not liable for the debts of the
company.
3. The cost of buying and selling shares includes:
• Stockbroker’s commission
• The difference between buying price and
selling price.
127
Potential Risks
3) Shares
There are two kinds of shares :
a)Ordinary
b)Preference
a)Ordinary shares
The holder is a part owner of the company and is entitled
to share in its profits in the form of :
a) Dividends (paid net of basic tax rate)
b) Capital gain from the shares by an increase in the
share price (not liable to tax)
128
Potential Risks
3) Shares
b) Preference shares
1. Holder has a right to a fixed dividend provided
that there are enough profit made.
2. This right takes precedence over the right of
ordinary shareholders to dividends.
3. They are slightly more secure than ordinary
shares but less profitable.
129
Potential Risks
3) Shares
Share price influenced by:
•Currency performance
•Market’s view on company
•Country’s economy
•Interest rate levels
•Inflation rate
•Company’s earning
130
Potential Risks
3) Shares
Advantages and Disadvantages of Shares
1 Investors participate High risk
directly in the future of
the company
2 Good dividends and
capital appreciation
3 Very liquid (can be
traded in the open
market)
131
Potential Risks
4) Unit Trusts
1. A pool of funds contributed by many investors

kept in trust by a trustee (usually a bank) and
managed by a professional fund manager.
2. Regulatory body will be Security Commission.
132
Potential Risks
4) Unit Trusts
Investors Trustee
Open-ended fund (usually bank)
kept the fund;
govern by trust deed.
Fund Manager
to manage.
Regulatory Body: Securities Commission

133
Potential Risks
4) Unit Trusts
Trust Deed: A unit trust is established by a trust deed.
•This deed enables a trustee to hold the pool of money
and assets in trust on behalf of the investors.
•A trust deed is set up of:
 Power for fund managers to invest
 Price structures
 Registration of unit-holders
 Remuneration of fund managers
 Accounting & auditing rules
134
Potential Risks
4) Unit Trusts
3. Unit trusts have no fixed redemption date.
4. The investment in unit trusts could generate
income in the form of
a) Dividends
b) Interest
c) Capital gains.
135
Potential Risks
4) Unit Trusts
Advantages and Disadvantages of Unit Trusts :
1 Lower risks, compared to Bewildering array of
shares funds
2 Professional investment Extra costs or charges
services are provided
3 Investor can utilize a
portion of his EPF from
account A to purchase EPF
approved unit trusts
136
Potential Risks
137
138
Potential Risks
5) Properties
• 3 types of real estate investment:
a. Agricultural property
b. Residential property
c. Commercial/ industrial property
• The price of an agricultural property depends on:

a. Quality of land
b. The location of the land
c. The types of crops grown
d. The value of the buildings on the land / Existing
facilities on agricultural property 139
Potential Risks
5) Properties
Good capital Difficult to be

appreciation disposed off during
recession
Steady flow of income
Low risk
By mortgaging, capital
can be free
140
Potential Risks
6) Real Estate Investment Trust (REITs)
1. A new asset class investment which has similar concept
like unit trust, e.g. STAREIT
2. REITs based companies will invest, manage and
distribute rental as dividend back to the investors.
3. REIT returns averagely in develop market is around
3-5%.
4. Similar concept like unit trust
141
Potential Risks
5. Invest, manage and distribute rental as dividend back
to investor
6. Trade in Bursa Kuala Lumpur with ease of buying and
selling back like a normal equity
7. Invest into high profile and high value properties for
better return
8. Long term retirement plan.
142
Potential Risks
•Good capital •Economic recession,
appreciation and steady property could be
flow of income difficult to be disposed
•Low risk off
•Mortgaging the property,
capital can be freed
Potential Risks
7) Sukuk Bond
1. Sukuk is the Arabic name for financial certificates.
2. Islamic equivalent of bonds
3. Sukuk securities are comply with Islamic law
4. Commercial paper which gives the investor a share of

ownership in the underlying asset.
5. Its investment principles which prohibits the charging,

or playing of interest
144
Potential Risks
7) Sukuk Bond
6. The Sukuk are equity securities which have the
following characteristics:
i. Pooled funds (Mutual funds)

ii. Hard assets that generates steady income;
iii. May be guaranteed or not by originators;
iv. Investors receive a fee equal to the income of the
underlying assets;
v. Securities issued by Special Purpose Vehicles (SPVs);
vi. Most Sukuk are issued in dollars;
vii. Differ from conventional bonds because based on
tangible assets, not debt.
145
Potential Risks
8) Capital Guaranteed Fund
1. Investment vehicle offered by institutions that
guarantees investor’s initial capital investment
from any losses provided that investor don’t
redeem your investment before the maturity date.
2. However, the amount of return is capped at a

specific rate although the actual investment may be
higher.
146
Potential Risks
9) Commodities
1) Represent an avenue for investors to venture out of
stocks or bonds.
2) Gaining from price movements.
3) One of the way is by futures contract
• Agreement of buy/sell – specific quantity, specific price
• Categorized as a derivative product
• Entails speculating future price movements
149
Sample Questions
1. Malaysian Treasury bills are debt instruments that are
considered safe because
I. they are issued by the Government of Malaysia.

II. they are short-term instruments.
III. they are guaranteed by the World Bank.
IV. their tenure is normally 12 months.

B. I, II, and III
C. I and II
D. I, II and IV
150
Sample Questions
I. Normally, when interest rates fall, the prices of fixed income or
bond assets may rise; when interest rates rise, their prices may
drop.
II. Government bonds are safer than corporate bonds but their
returns are comparatively lower.
III. The maturity period of short-term government bonds is usually
less than 5 years; for the medium-term ones, it is usually 5-10
years and for the long-term ones, it is usually above 15 years.
IV. Preference shares are hybrid securities with both equity and
fixed income characteristics. In the event the company
concerned winds up, preferred shareholders have the first right
to be compensated from the company assets first before normal
shareholders.
B. II, III and IV
C. I, II and III
D. I and IV 151
Sample Questions
3. The similarities and differences between unit trusts and single
premium investment-linked plans are:
I. The investment approach of both are similar.
II. The life insurance protection element is not part and parcel
of unit trust products, whereas for single premium
investment-linked plans, it is.
III. Unit trusts do not impose cost of insurance and policy fee
charges since the life protection element is absent.
IV. A trustee must be appointed for unit trusts but this is not
compulsory for single premium investment-linked plans.
A. I and II
B. I, II, III and IV
C. II, III and IV
D. I and III
152
Sample Questions
4. Which of the following statements about Real Estate
Invest Trusts (REITs) is NOT true?
A. REITs operate in a way similar to unit trusts.

B. Rental income from the properties invested by a
REIT is distributed to investors in the form of
dividend.
C. A REIT can invest in a wide range of properties like
malls, office blocks, apartments, commercial lots,
hotels, etc.
D. REITs may acquire shares in property development
companies.
153
Sample Questions
5. Which of the statements below is incorrect?
A. Sukuk are like bonds but they are based on Shariah-

compliant principles.
B. Malaysia is the world’s largest issuer of sukuk.
C. Sukuk securities are issued by Malaysia in Ringgit
only.
D. Sukuk securities issued by Malaysia can be in USD.
154
Sample Questions
6. The protection offered by PIDM on the deposits placed in banking
institutions and policies bought from insurance companies
operating in Malaysia is granted
I. to all banks, insurance companies, takaful operators,
reinsurance companies and retakaful operators which have
business operations in Malaysia.
II. only to banks, insurance companies and takaful operators
which are member institutions of PIDM.
III. with a levy charged to all member institutions and non-
member institutions at differing rates.
IV. with a levy charged to member institutions.
A. I and III
B. I and IV
C. II and IV
D. III
155
Chapter 7
COMMON TYPES OF
INVESTMENT-LINKED
FUNDS
Common Types of Investment-Linked Funds
Types of IL Funds
• There are seven types of IL funds:
1. Fixed Income/Cash and Money Markets Funds.

2. Equity Funds.
3. Property Funds and REITs.
4. Managed Funds.
5. Balanced Funds.
6. Specialised Funds.
7. SUKUK
8. Risk vs Returns of investment-Linked Funds.
157
Types of IL Funds
Types of Investment Vehicles Remark
Funds
Low risk,
Cash Cash/bank deposits
secure
Bond/Income
/Fixed Government/Corporate bonds -
Income
Capital
Equity Equity assets (stocks & shares)
appreciation
Property and Real estates/property shares

Illiquid asset
REITs
Types of IL Funds
Funds
Managed Wide variety of asset Moderate
allocation
Balanced Funds invest fixed proportion
of specified assets.
-
70% in equity
30% in fixed income
Specialised •Based on geographical Risk of
regions or particular currency
industries exchange
• ASEAN fund, China fund,
mining, plantation, etc. 159
Types of IL Funds
Funds
SUKUK • Comply with Islamic law Low risk
• Based on tangible assets
instead of debt
160
Risk-return
Risk
Equity
Funds 
 Derivatives
Managed
Funds

Property
 Funds
Bonds
Funds

Balanced
 Funds

Cash Funds
Return
161
Risk-return of Investment-Linked Funds
Bond Equities
Debt funds Features Stocks and shares
Lower risk Risk Higher risk
Higher
Stable Return (Depending on stock market)
**To lower risk of loss in equity fund:

• mechanism of Dollar Cost Averaging via continuous contributions to fund
over a long horizon
• spread-out to various stocks in one equity basket. 162
Risk potential correlates with return potential
Actual local bond fund:
1. “P’ Bond Fund of “C” Bank Group
(a) Current Average Volatility Factor @ July 2014: 0.89
Calendar Year Performance (%)

8.43%
5.84% 5.69%
3.87%
3.51%
2.35%
2008 2009 2010 2011 2012 2013

Year
Average Performance: 4.94 163

Risk potential correlates with return potential
Actual local bond fund:
2. FBM-KLCI Index
(a) 1 Year Volatility (%) : 6.5
(b) Total Return 2013 (%) : 14.0
To Conclude:
a) Bond fund: Low Risk/Volatility = Low Return
b) Equity fund: High Risk/Volatility = Higher Return
BUT !
**Note that higher risk (Equity fund) will face a steeper drop in return
than bond funds when market faces downturn
164
Risk-return of Investment-Linked Funds
Services from
Advantage
professional fund
of IL funds
managers
165
Sample Questions
1. Sukuk is gaining ground in terms of transaction volumes in
Malaysia, including for investment-linked funds because
I. this investment vehicle is becoming more popular
among investors.
II. of the strong support from the Government and mega
corporations, especially Malaysian ones.
III. of its higher return experience compared to
conventional bonds because of special incentives
provided by the Government.
IV. it is traded only in Malaysian Ringgit.
A. I, II and III
B. I and II
C. II and III
D. I, II, III and IV
166
Sample Questions
2. The average yield of Malaysian Treasury bills with
tenures of 6 to 12 months is
I. around or slightly better than 3%.
II. normally around 4 to 5 per cent.
III. normally of very low volatility ratio but in periods
when the Government embarks on mass mega
projects and needs funding, it may issue bills with
yields as high as corporate bonds.
IV. with wide variance, depending on the type of bill.
A. I
B. II and IV
C. I, II, III and IV
D. IV 167
Sample Questions
3. If is safer to rely on professional fund managers
appointed for investment-linked funds than to invest
directly in the stock market because
I. an ordinary individual is generally not equipped to identify the
right stock that will reap gain.
II. the professional fund managers’ role is to ensure the assets and
vehicles achieve a certain minimum growth rate according to
the various stages of time span; otherwise, the fund managers
and life insurer will be obligated to make up the shortfall.
III. it is not easy for an ordinary individual to pick the right time to
buy and the right time to sell for optimising capital gains.
IV. ordinary individuals, especially those occupied with work, do
not have the time and knowledge to properly monitor market
trends.
B. I, III and IV
C. I, II and III
D. II, III and IV 168
Sample Questions
4. Malaysian bonds are deemed to be
I. more volatile than global bonds.
II. less volatile than global bonds.
III. rated at very high preference because the
country’s economy is growing vibrantly.
IV. experiencing better yields than global bonds for
many years.
A. I and III
B. II
C. III and IV
D. IV
169
Sample Questions
5. Compared to government bond funds, corporate bond
funds have
I. lower yields and lower risks.
II. higher yields and higher risks.
III. more or less similar yield and risk ratios.
IV. a longer tenure.
B. II
C. III and IV
D. IV
170
Sample Questions
6. If an insurer has an investment-linked fund tracking the
FBM-KLCI index, it means
I. the fund manager refers to the index as the benchmark for
guiding the fund’s investment strategy and also the return
targets in the ensuing years.
II. the insurer is obligated to grant the returns according to the
ratios experienced by the index. If the actual return of the
fund in any period is lower than that shown by the index, the
insurer will top up the difference. .
III. the fund invests in the same stocks of the companies
identified by the index.
IV. the fund invests in stocks of companies in the same
industries as the companies identified by the index.
A. I and IV
B. II
C. I and II
D. III 171
Chapter 8
PERTINENT
GUIDELINES ON
INVESTMENT-LINKED
BUSINESS
Guidelines on Investment-Linked Business
IL Guidelines issued by Bank Negara
(Ref. BNM/RH/GL 010-15)
Professional and proper conduct
• in the sales of investment-linked policies
Valuation of units
• Carry out every business day
Insurers can undertake unit splits,

with the conditions:
• Once in a financial year
• When there is appreciation in the NAV over a 6-month
period 173
Premium holidays
• Insurers to seek policy owners’ consent before

deducting
Requirement for min. death benefits

not applicable with top-up premiums
174
Policy cancelled with 15 days free-look

period, insurer refund:
• Unallocated premium
• Value of units (allocated) at unit price on next valuation
date
• Deducted insurance charges and policy fee
Initial offer period shall not exceed two

months
• Min. fund size not reached, insurer shall refund monies
contributed with interest/investment profits earned
175
Insurers shall:
• Provide separate Fund Fact Sheet for each IL funds

• Provide statement on the value of policy
• Provide report on the performance of each IL fund to
policy owners
• Publish latest NAV per unit of IL funds daily in
newspapers or insurer’s website
176
Maximum gross rates for sales
illustrations
Illustrated Return for Generic Funds X% Y%
Equity 2% 9%
Managed 3% 8%
Bond 4% 7%
* Max. period of projection should not exceed 30 years

**The guidelines also apply to family takaful products.
To sell family takaful products by takaful operators must pass the
Takaful Basic Examination.
177
Sample Questions
1. Valuation of units in an investment-linked fund must
be done
A. six days in a week, including Saturdays (half day).

B. every business day.
C. every day.
D. seven days a week. For a day that falls on a
weekend or a public holiday, valuation processed
by the automated system will be based on the
same unit price as the previous business day.
178
Sample Questions
2. The guidelines stipulated by the regulatory authority in allowing a
life insurer to undertake unit splits for an investment-linked fund
once a year is on the condition that “there is sustainable
appreciation on net asset value (account value) over a six-month
period preceding the split.” Which statements below is correct
regarding the above statement?
A. This means that appreciation over the 6-month period must be

considered substantial by reasonable standard compared to the
previous 6 months.
B. This refers to an appreciation rate of at least 20 per cent at the
end of the current 6 months over the previous 6 months.
C. This refers to an increase in the average monthly net asset value
(account value) consecutively for 6 months.
D. This means that the discretion to define “sustainable appreciation”
may lie with the life insurer as long as there is growth in the fund in
the prevailing 6 months over the previous 6 months, subject to the
approval of the board of directors. 179
Sample Questions
3. Since part of the initial premium of a regular premium
investment-linked plan may already have been allocated and
invested to acquire fund units by the time the customer decides
not to take the plan within the 15 days free-look period, in what
manner will the refund be made?
A. Refund of full initial premium

B. Refund of full initial premium minus policy fee and medical
examination expenses (if any) incurred by the life insurer
C. Refund of unallocated premium + net asset value (account
value) at next valuation date + insurance charges and policy
fee already deducted - medical examination fees if any
D. Refund of unallocated premium + net asset value (account
value) – cost of insurance and policy fee-medical
examination fees if any
180
Sample Questions
4. Life insurers offering investment-linked insurance are
obligated to provide certain fundamental “transparencies” as
required by regulatory guidelines. These are:
I. a separate Fund Fact Sheet for each of the funds.

II. a statement on the policy owner’s net asset value (account
value) details at least once a year.
III. a performance report on each fund of the policy owner at
least once a year.
IV. publishing of fund unit prices daily in at least one national
English newspaper and one national Bahasa Malaysia
newspaper, and on the insurer’s website.
A. II, III and IV
B. I, II and III
C. I and II
D. I, II, III and IV 181
Sample Questions
5. Which of the statements below regarding sales illustrations for
investment-linked plans are correct?
I. The low and high projection for an equity fund should not be above
2% and 9% respectively for the first 20 years.
II. The low and high projection for a managed fund should not be
above 3% and 8% respectively for the first 20 years.
III. The low and high projections for a fixed income/bond fund should
not be above 4% and 7% respectively for the first 20 years.
IV. For projected illustrations beyond 20 years, insurers must abide by
the low scenario rates of 2%, 3% and 4% for equity funds, managed
funds and bond funds respectively. The high scenario rates for the
same three funds are 6%, 5.5% and 5% respectively.
B. I, II and III
C. I and II
D. II, III and IV
182
Sample Questions
6. What are the prerequisites for the launch of a new
investment-linked fund?
I. A minimum fund size can be set by the insurer.

II. The initial offer period shall not be more than 2 months from
the date of launch.
III. If the minimum fund size is not reached by the end of the
initial offer period, the insurer can call off the fund and
refund all premiums collected.
IV. The insurer will also have to pay interest or profit from the
premiums collected during the initial offer period to the
intended policy owners.
A. I and II
B. I, III and IV
D. I, II and III 183
Chapter 9
AGENTS
PROFESSIONAL
APPROACH AND
GUIDELINES
Agents Professional Approach & Guidelines
Marketing
Objective:
The management process responsible for

identifying, anticipating and satisfying
customers requirements profitably
The objective of satisfying customers’ requirement can be

achieved through:
• usage of financial needs analysis
• knowing customer tools
• sales illustrations
185
To engage in personal selling requires:
Product Knowledge
Market Knowledge
Knowledge of Buying Process
Knowledge of Selling Process
Selling Techniques
186
Customer Buying Decision Process vs. Selling Process

Buying Decision Process Selling Process
1. Problem recognition 1. Locating of
2. Information search prospective customer
3. Evaluation of 2. Creating sales
alternative process presentation
4. Purchase 3. Conducting sales
5. Post purchase interview
evaluation 4. Handling objections
5. Closing the sales
187
Customer Buying Decision Process vs. Selling Process
Post-
Purchase
Purchase Evaluation
Evaluation
of
Information Alternative
Search Policies
Problem
Recognition
188
Customer Buying Decision Process
1) Problem Recognition
• Customer Fact-Find (CFF) form
• Minimum details required to be recorded in CFF are :-
1. Personal details
2. Personal and family circumstances
3. Objectives regarding needs, i.e. protection, retirement
4. Risk appetite or tolerance
5. Elements identified in a financial needs analysis
6. Advice by agent/intermediary
7. Recommendation of appropriate product by the
agent/intermediary
8. If policy owner prefers specific product information only,
he/she should declare in form
9. Signature by new policy owner
10.Signature by agent/intermediary 189
2) Information Search
• Need has been perceived, consumer search for information.
• This effort depends on :-
a) The consumer’s experience in purchasing product
b) Importance of the purchase (benefits)
c) Value involved
3) Evaluation of Alternative Policies
• Important factors for the selection of an insurer are :-
a) Reputation of the insurer (60%);
b) Quality of coverage and services provided (26%);
c) Policy benefits (14%);
Other factors which have influence on the consumer decision are :
a) Agent’s personality and friendliness;
b) Agent’s professional capability;
c) Premium and other terms. 190
4) Purchase
• Make the decision to purchase one of the alternative
products
5) Post-purchase evaluation
• Keeps in contact with customers
• Provides important information of risk evaluation
• Better chance of securing the loyalty of the customer
191
The Selling Process
Closing the
sale
Handling
Objections
Conducting
Sales
Sales Interview
Presentation
Locating
Prospective
Customer
192
The Selling Process
1) Locating the Prospecting Customer

• Prospecting = Identify, contacting, & qualifying potential
customers
a) Current and past customers
b) Friends
c) Business associates
d) Seminars or education classes
e) Promotion and advertising activities campaigns
2) The Sales Presentation

• Visual aids
• Must use sales brochures or sales illustrations authorized by
insurer
3) Conducting the Sales Interview
• Creating interest
• Create a product to satisfy prospect’s need
193
The Selling Process
4) Handling Objections
Locating
5) Closing the Sale Prospects
• Follow-up interview
Closing Presentation
Handling
Interview
Objections
194
After-Sales Services
1. Cognitive Dissonance (psychological state) where customers

feel uncertain.
2. After sales service can reinforce the customers’ original
decision to buy the product.
3. Opportunities as such:
– Address post-sales concerns
– Remind about future financial needs
– Obtain names of referred leads
– Strengthen relationship with customer
– Encourage persistency
195
After-Sales Services
Policy owner sign

Explain Agents return
delivery
contractual signed slip to
“acknowledgement
provisions insurer
slip”
**15 days cooling-off period commences from the date of policy delivery
acknowledged by policy owner.
196
LIAM Guidelines on the Code of Conduct
PART I – Guidelines Part II – Life Part III- Statement
on the Code of Insurance Selling of Life Insurance
Conduct Practice
1. Statement of 1. Introduction 1. Introduction
Philosophy 2. General Sales 2. Claims
2. Coverage Principles 3. Proposal Forms
3. Monitoring 3. Explanation 4. Policies and
Devices 4. Disclosure of Accompanying
4. Seven Principles Underwriting Documents
of the Information 5. Sales
Guidelines 5. Accounts and Materials/Adver
5. Code of Financial tisements
Conduct Aspects
197
Part I: Guidelines on the Code of Conduct
A. Statement of Philosophy
1. Behaving with Complete Integrity and ethics in an
Insurance Agent's Professional Life.
• Business based on trust, honesty, responsibility,
professionalism
2. Complying with the Law and with the Best Principles

and Practice relating to Financial Advice.
198
B. Monitoring Devices
The management of a life insurance company shall establish the
following minimal procedures :
1.All employees and intermediaries to sign a declaration.
2.Heads of department to ensure compliance with the guidelines.
3.Breaches report to disciplinary committee & Board of Directors.
4.Submit quarterly reports to Bank Negara Malaysia on breaches.
5.Maintain centralized records of breaches.

6.Report immediately cases of fraud to the police and BNM.
199
C. The Seven Principle
1. To avoid conflict of interest.
2. To avoid misuse of position.
3. To prevent misuse of information.
4. To ensure completeness and accuracy of relevant records.
5. To ensure confidentiality of communication and transactions
6. To ensure fair and equitable treatment of all who are associated

with the life insurance company.
7. To conduct business with the utmost good faith and integrity.
200
D. Code of Conduct only a Guide

1. Purpose of guidelines:
a) Promoting proper standards of conduct
b) Prudent business practices
2. When in doubt relating to code of conduct,

employees are to seek guidance from company’s
management or Bank Negara Malaysia
201
LIAM’s Guidelines on Code of Conduct
PART 1 – Part II – Life Part III- Statement
Guidelines on the Insurance Selling of Life Insurance
Code of Conduct Practice
Conduct Aspects
Part II: Life Insurance Selling
Introduction
• The term 'life insurance' used in the Code of Ethics and
Conduct covers all types of:
1. Ordinary life insurance
2. Annuities
3. Pension Contracts
4. Investment-linked insurance
5. Permanent Health Insurance
203
A. General Sales Principles
• Intermediaries SHOULD:
 Produce Registered Intermediary Authorization Card
 Ensure the policy proposed is suitable to the needs
 Give advice only
 Treat all information as completely confidential
 Make clear comparisons on characteristics with other
types of policies
 Render continuous service to policyholders
204

• Intermediaries SHOULD NOT:
 Make inaccurate or unfair criticism of any insurers
 Attempt to persuade a prospective policyholder to
cancel any existing policies unless these are clearly
unsuited to the policyholder’s needs (twisting)
205

• Twisting is “to persuade clients in discontinuing a policy
or to have a policy made paid-up or to be replaced by a
new policy regardless in another company or the same
company”
206
• Detriments arising from twisting are:
1. Qualifying period will have to recommence.
2. Higher premium rates based on attained age.
3. Paying Initial costs twice.
4. Suicide clause, incontestable clause & other
clauses have to start all over again.
207
B. Explanation of the Contract
1. Intermediary shall:
• Explain provisions of contract
• Draw attention to restrictions applying to
policy
• Draw attention to long tern nature of policy
• Draw attention to whether the policy
qualifies for tax relief
2. Participation in profits depending on variable
factors
3. Projected benefits illustrated
208
C. Disclosure of Underwriting Information

Intermediary shall:
1. Avoid influencing proposer answers or statements
while filling up proposal form
2. Point out the consequences of non-disclosure and
inaccuracies to proposer
D. Accounts and Financial Aspects

Intermediary shall:
1. Acknowledge insurer receipt and maintain a
proper account of all monies received in
connection with insurance policy.
209
LIAM’s Guidelines on Code of Conduct
PART 1 – Part II – Life Part III- Statement
Guidelines on the Insurance Selling of Life Insurance
Code of Conduct Practice
Conduct Aspects
210
Part III : Statement of Life Insurance Practice
Introduction
Aim is to reduce formalities involved in the issue of new
policies and payment of a claim.
Audit/disciplinary committee of insurer monitors the

insurer’s compliance with guidelines.
211
A. Claims
Guidelines:
a) Insurer may not reject claim unreasonably
b) Claims have to be settled without delay
c) Insurer shall not collect claim processing fees from
policy owner
B. Proposal Forms
Proposal forms based on Code of Good Practice for Life
Insurance business (Part III)
a) Proposal form – Disclosure of material facts should be
stated in the declaration
212
C. Policies and Accompanying Documents

Proposal for whole-life or endowment insurance contract
features should be mentioned:
1. Long-term contracts
2. Surrender values – Policy will not have cash value on
termination unless premium paid for 3 years or more
213
Agents Professional Approach and Guidelines
Guidelines on Minimum Standards for
Treating Customers Fairly
1. Issued by Life Insurance Association of Malaysia
2. Agents to take note:
a) Customers are fully informed about the key benefits,
key risks and exclusions.
b) Agents – well trained in investment and savings

products.
c) Products sold based on customer’s needs and

suitability.
214
Sample Questions
I. Agents must utilise the sales materials and sales illustrations
provided by their respective principal in their sales process.
II. Agents must utilise the sales materials and sales illustrations
provided by their respective principal in their sales process.
However, they may have the discretion to supplement these
provided the facts do not deviate from those in the materials
and illustrations provided by the principal.
III. Only the signature of the intended new policy owner must be
obtained on an insurer’s Customer Fact-Find (CFF) form.
IV. The sales intermediary must also sign the CFF form as
witness after the intended new policy owner has signed.
A. I, II and IV
B. I and III
C. II and IV
D. II and III 215
Sample Questions
2. As soon as a policy contract has been issued by a life insurer,
I. the insurer is to mail (by registered mail) the policy contract to the
correspondence address of the new policy owner. The registered
mail slip should suffice as evidence that the contract has reached
the policy owner.
II. the agent should deliver the policy contract without delay.
III. the delivery process should entail the explanation of the
contractual provisions and re-explaining the benefits. The agent
then has to request the new policy owner to sign the delivery
acknowledgement slip. Finally, the agent must return the signed
acknowledgement slip to the insurer for recording and filing.
IV. if the new policy owner is unavailable at the first time of personal
delivery by the agent, acknowledgement of receipt of the policy
contract signed by a representative of the policy owner’s household
or office shall be deemed valid. The agent does not need to follow
up on this.
A. I and II
B. II and III
D. I, III and IV 216
Sample Questions
3. Agents who have sold investment-linked plans should conduct
reviews with their clients ideally once a year. The purposes are
I. to provide updates on the performance progress of fund/s

selected by the clients.
II. to discuss and ascertain whether the client’s financial
objectives might have changed due to certain circumstances.
III. to discuss and ascertain whether the original risk profile of
the client has changed due to certain circumstances.
IV. to discuss alternative next steps where necessary.
A. I, II and IV
B. II, III and IV
D. III and IV
217
Sample Questions
4. The Code of Conduct pertaining to life insurance
selling applies to
I. all agents.
II. all employees of life insurers.
III. insurance brokers.
IV. agents and insurance brokers.
A. I, II, III, and IV

B. I and III
C. I and II
D. I, II, and IV
218
Sample Questions
I. Agents may design their own financial planning form
to gather financial data and financial information of their
prospective clients for analysis. However, the format must
be approved by their principal.
II. The Customer Fact-Find form of a life insurer officially
documents important facts concerning the financial data
concerning a prospective policy owner and his family.
III. Cancellation of a policy is allowed if the request by a new
policy owner falls within the 15 days free- look period. The
period commences from the date the policy contract is
passed to the agent for delivery.
IV. The free-look period commences from the date the client
signs the acknowledgement slip upon receiving the policy.
A. I, II, and III
B. I, II, and IV
C. II and IV
D. I and IV
219
Sample Questions
6. The pertinent points highlighted by the Guidelines on
Minimum Standards for Treating Customers Fairly (TCF) for
agents’ attention are:
I. Agents should inform customers fully about the key benefits,
key risks and exclusions.
II. Agents must first be well-trained, especially involving the
sale of investment and savings products.
III. Agents must guide the customers as to what details are
necessary to declare and what are not necessary so that the
concise personal information captured in the application
documents will cater for a smooth underwriting process.
IV. The product being proposed to a customer should be based
on suitability, needs and risk appetite.
A. I, II, and IV
B. I, II, and III
C. II and III
D. I, II, III, and IV 220
221
221
All rights reserved. No part of this publication may
be produced, translated, stored in a retrieval system
or transmitted in any form or by any means,
electronic, mechanical, photocopying and recording
without the prior written permission of the copyright
the developer and owner.
CEILLI Training, 7th Edition, 26th August 2015

Tokio Marine Training & Development Academy (TMTDA),
Tokio Marine Life Insurance Malaysia Berhad (457556-X)
Thank You
223

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Certificate

This course will help participants to :

1.Learn and understand basic knowledge about

2.Prepare to sit for the CEILLI examination

Total number of Investment- Distribution of annual premium that

284,679,163,295 Sum assured (2013)

Part of this growth is due to the fact that, Insurance companies in

1. Amount of coverage needed

• With selected annual premium

2. Choose min. sum assured

Pay linked Special

Investment-linked insurance offers investors policies

•Premiums are used to purchase funds

Therefore, policyholders who choose to take Investment-Linked

Refers to the same thing

I. The Malaysian Government granting more flexibility to life

2. Which of the following is the correct description of an

A.A participating policy offering lifetime coverage

I. Mutual fund-linked policy

A. I, II, III and IV

I. The insurer’s own professional managers in its internal

A. I, II, III and IV

I. a nominal amount of sum assured of his selection.

I. Policy owners of investment-linked plans should be made to

2)To understand the primary focus for regular premium

1. Minimum Regular Premium

b) Regular premium investment-linked insurance (RP-IL)

2. Allocated and Unallocated Premium

3. Regular and Ad Hoc Top-Up Premium

3. Regular and Ad Hoc Top-Up Premium

He will have to be covered for at least

16 years old minimum coverage is

**Regular premium excluded when calculating the min.

Age SAM Factor

4. Sum Assured Multiple Rule (SAM)

a) Example 1 (Riders with SA):

2)RM 600,000/50 (SAM factor from 30 years old)

b) Example 2 (Riders without SA)

2.(Notional premium) X (multiple factor depending on age)

UDR need not extra regular premium but it entails the

**Agency commissions are payable from PPRs, not from UDRs. 32

8. Fund Switching and Switching Fee

11. No Lapse Guarantee Period

1. Regular premium has been paid without fail

12. Death Benefit Mechanism

17. Retirement plan, Medical plan, and Education

• medical plan cover medical expenses & education plan for

A. II, III and IV

3. A female, aged 30 years, has budgeted to set aside

A. I, II, III and IV C. I, III and IV

3. Sum Assured Formula

• Allows insurers lower it to 105% of SP.

4. Death Benefit Formula

5. Cost of Insurance Deduction and Sum at Risk

• Unless account value is still below BSA, COI will be deducted.

A. generally, about 95% of the single premium is allocated for

2. Mrs. A, aged 45, signs up for a single premium investment-

I. COI is based on the sum assured or account value, whichever

I. the market is on the upturn and unit prices are rising.

 The fund normally consist of wide range of equity

 A well-diversified investment-linked fund has better

Switch between funds Withdrawals

Change level of sum assured