Separating insurance and investment

For Christopher Tan, CEO of fee-only wealth advisory Providend, the purpose of insurance is primarily financial protection, especially against unexpected losses such as accidents and illness.

“Buy as much insurance as you need, but pay as little as you can,” says Tan in our main story. He thinks investment-linked products (ILPs) are “not ideal” for protection and instead advocates term insurance, which he considers “more suitable and affordable” for most life risks.