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Financial advisory
RES5Financial Advisory Services✓Nadia pays a S$30,000 single premium into an investment-linked policy. During the 14-day free-look period the underlying investment falls 10%. When she exercises her free-look right, she is refunded approximately:
For an ILP the free-look refund reflects the value of the underlying investment, since the risk of any fall in value during the free-look period is borne by the client. A 10% fall on S$30,000 leaves roughly S$27,000 (S$30,000 − S$3,000).
Unlike a traditional policy, an ILP free-look refund is not the full premium — the market fall is deducted, giving about S$27,000.
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