Investment-linked policies(ILPs) are insurance policies that are linked to investments such as unit trust.
One of the main advantages of such policies is the returns on the policies is dependent on the funds it invested and the market outlook rather than the performance of the insurance company.
One of the main disadvantages is the under-lying charges which can be confusing for the policy holder.
MAS recently proposed to insurers to have a standard the way fees and charges for ILPs. Read here for more details
Mas Calls For Clarity Over Charges For Investment Linked Policies – International Adviser.