FREE GUIDE
The ILP Fee Audit Checklist
Work through this once and you will know exactly what your Investment-Linked Policy costs you, and where to push for a straight answer. Tick each line as you confirm it.
1 · Find every charge
Fund management fee. The annual % each sub-fund deducts from its price (often 1%–2%). It never shows on a statement — it is taken before the unit price.
Policy / admin charge. A recurring cost, often deducted by cancelling units each month.
Insurance / mortality charge. The cost of the protection bundled into the policy, which can rise with age.
Bid-offer spread. The gap between the buy and sell price of units.
Fund-switching fee. What you pay to move between sub-funds, and how many free switches you get.
Surrender / early-exit penalty. What you lose if you stop in years 1–3. This is usually the heaviest cost.
Adviser trail. The ongoing commission paid to whoever services the policy. Ask who currently receives it.
2 · The five questions to ask
“What is my total cost per year, in dollars — not percentages?”
“What would I get back if I surrendered today, and in year 3?”
“Who services this policy now, and who receives the trail commission?”
“When was my fund allocation last reviewed, and against what?”
“If markets fell 30%, what is the documented plan for my policy?”
A clear answer to all five is a good sign. A vague answer tells you something too.
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Want a second pair of eyes on yours? Book a free review →
General information only, not financial advice. Figures vary by policy and provider.