Next year, regulators will no longer allow insurers to offer ‘101’ ILAS policies. The products will all become ‘105’ policies. This means that instead of offering a measly 1% death benefit, the products will offer a slightly less measly 5%.
This will do nothing to stop the products from being mis-sold as an “attractive” combination of investment plus “insurance”.
Enoch Yiu, a columnist from the South China Morning Post, has a better proposal for regulators:
“The government should think about banning products from being called life insurance if the life coverage is too low.”
See Enoch Yiu’s article here: