About the author/site · Vocus @WUCJ ↗ · Editorial policy
Page version: 2026-08-23 | Official or primary sources are preferred for material rules and figures. AI may assist structure, translation, and code, but is not used as the sole factual source.
What can an investment-linked policy invest in?
Taiwan's current rules permit a range of assets, including domestic and offshore funds, bank deposits, certain bonds, REIT-related securities and other approved instruments. The actual menu depends on the policy.
Policy fund vs direct fund account
| Inside an investment-linked policy | Regular fund account | |
|---|---|---|
| Legal structure | Investment rights within an insurance contract / segregated account | Direct fund units |
| Costs | Policy costs + fund costs | Distribution-channel costs + fund costs |
| Protection | Life or annuity protection depending on product | No insurance protection |
| Switching | Subject to policy switching rules and fees | Redemption / subscription or platform rules |
Two layers of cost
FSC disclosure rules require policy-level charges to be itemized, including upfront, policy-related, investment-related, back-end and other charges. Meanwhile management and custody expenses of underlying funds are reflected in fund NAV.
Account value is not just “principal plus returns”
Policy account value can be affected by premiums paid, investment results, policy charges, insurance costs, loans, withdrawals, surrender and benefits. For products with life protection, insurance costs may rise with age.
Distributions and managed-account payouts
High payout rates should not be read as guaranteed income. Distributions can involve capital, and Taiwan disclosure rules require warnings when asset-withdrawal mechanisms are not fixed.
Before switching funds
- Check free-switch limits and charges.
- Understand valuation dates and execution timing.
- Check FX risk between currency share classes.
- Review whether your whole portfolio becomes more concentrated after the switch.
How to evaluate fund options
First decide whether you need the insurance contract. Then evaluate investment objective, risk, concentration, ongoing fund expenses, distribution source, currency, hedging and overlap with assets held outside the policy.