The Straits Times Forum: A balanced picture of ILPs and financial advisers needed
Forum: A balanced picture of ILPs and financial advisers needed
As published on The Straits Times on Oct 13, 2025
Recent articles have drawn attention to investment-linked insurance plans (ILPs). While highlighting fees and complexity is valid, presenting these issues without giving equal weight to potential benefits risks misleading the public and undermining trust in financial consultants.
The position of the Insurance and Financial Practitioners Association of Singapore (IFPAS) is clear: ILPs, like all financial tools, serve a purpose when used appropriately. They provide both protection and investment opportunities. For some, they fit long-term wealth and protection needs. For others, different products may be better. The real question is not whether ILPs are “bad”, but whether they are suitable for the clients’ goals, needs and risk profile.
Financial consultants do not recommend products blindly. They follow a regulated six-step financial planning process – from understanding clients’ needs to reviewing plans regularly – to ensure tailored, responsible advice. The majority of practitioners act with professionalism and integrity. To generalise otherwise because of isolated cases unfairly discredits an entire profession.
Singapore’s financial advisory sector is one of the most tightly regulated in the world. Consultants are licensed under the Financial Advisers Act, trained rigorously, and bound by strict standards of disclosure and ethics. IFPAS itself has, since 1969, invested in raising standards through advanced education, industry collaboration and community financial literacy.
Consumers, too, play an active role in this partnership by asking questions, clarifying fees, and making informed decisions. Good outcomes arise when advice and engagement go hand in hand.
We urge the media to present a balanced picture of ILPs and the profession. Sensational headlines may capture attention, but they risk sowing fear instead of providing clarity. Singaporeans deserve reporting that informs, not alarms.
The financial planning profession welcomes scrutiny but it must be fair, accurate and responsible.
Ng Eng Beow
President
Insurance and Financial Practitioners Association of Singapore
