Invest in a low cost fund

I have recommended that you buy term insurance and invest the difference in a low cost fund.

Some investment-linked products (ILP) in the market have high charges, and give a poor return. You have to avoid these products. This website shows a comparison of the charges.

You have to be careful about the three levels of charges:

* upfront charge to pay commission to the agent or broker
* annual charge on the investments, and policy fee
* mortality charges (to pay for the insurance cover)

The best is a "do it yourself" unit trust. If this is too difficult, you can take the next best, which is a low cost ILP.

You can buy the term insurance separately. If you wish to buy it as part of the same ILP product, you should compare the premium rates. Make sure that you are allowed to cancel the term insurance, if the cost is too high.