any latest respond from the particular insurance company?

Hi guys, I read one article saying the insurance company can increase ILP yearly premium as they want in a few years time. in accordance to the insurance charges schedule.

Is this true?..

I just bought an ILP a year ago and came across  the article yesterday. I am afraid that my premium will increase in a few years time.

umm....this seem worrying to me le....
i brought 1 insurance recently...think is life insurance...purpose same as the mortgage insurance...but this one got cash value...if compare to the mortgage insurance....
the agent said will at least get 5% interest....
if house loan finished..let say 20 years......at least can take back the $$ put in for about 20 years...mayb will loose some $$ only if compare to mortgage insurance....
dono how true is it....

Sorry newbie here, but when it says maturity, does it mean you withdraw the lump sum of cash and the policy is no longer valid?

i've studied one of Allianz's new ILP, this is what i understand...

monthly premium consist of :
1. allocated portion (65% @ 1st year, 90% @ 2nd year, 100% @ 3rd year onwards)
2. unallocated portion (100% minus allocated portion, this is to cover insurance company's cost, as well as the bank's commission)

allocated portion will goes to:
- RM5.00 per month for service charge
- Cost of Insurance = risk factor / 1000 x sum assured / 12 months (risk factor differs from company to company, your agent SHOULD be able to tell you)
- the remaining balance will goes to unit purchase in selected funds

e.g. cost of insurance : 1.18 (risk factor for 30 yr old non-smoker) / 1000 x 100k (sum assured) / 12 months = RM9.84 per month.

make sure your agents are transparent enough to tell you where have your every single cent spent, to avoid disappointment like what have happened to the ts.

answering to post#50 above :
since risk factor will increase in according to age, hence cost of insurance will increase when from year to year.

however, cost of insurance increase =/= premium increase. i.e. your monthly premium will remain unchanged as long as your policy does not lapse (for allianz's case, up to 100 yr old). which means your money left (i.e. allocated portion - RM5 - COI) will decrease over times.

happy insuring

Hi there,

I think what you are mentioning here is a Bankassurance product hence the allocation. Allianz's most popular ILP is the POWERLINK policy that has the following allocation:
1st and 2nd yr: 45% allocation for insurance premium
3rd and 4th yr: 80%
5th and 6th yr: 85%
7th yr and above: 100%

CHeck this out: https://www.allianz.com.my/cls/content.aspx?t=847&m=0#top

rgds,
Ronnie Fr Allianz

do you mean that 7th year and above the total amount we paid yearlyis for premium and not to invest?
Means only some portion of the premium during 1st to 6th year will be invested?

Thanks for the reply guys....

Any advice for current ILP holders?

Should  I surrender my ILP, since I am afraid the premiums will be too much for me too bear in the future, and start looking for buy Term or  whole insurance etc..

Thanks for the reply guys....

Any advice for current ILP holders?

Should  I surrender my ILP, since I am afraid the premiums will be too much for me too bear in the future, and start looking for buy Term or  whole insurance etc..

In the above, you're just stating the fact that ILP is meant for those "lazy" ppl which do not bother to get their own hands dirty.
ILP also invest in funds - equities and money markets but one person is not in control of the switching or cashing out. It's fully dependable on the judgment of the specific fund manager.
Your only strong point is saying that normal ppl could not match the likes of these fund managers which is again just an excuse for those "lazy" ppl.
If you ask ppl like me or even dreamer, we never hoped for "savings" to help grow money. (dreamer may correct me if I made the wrong assumption on behalf of him)
Savings to me is yeah....savings and for future emergency use. Interest earned is a surplus as long as I don't loose that amount of money (let's not talk about the risk of inflation risk involved here). Heck, I could keep cash stored in my own house safe box and that's savings to me.

Investment is a separate play altogether for me. I'm clear on the risk and what is expected, also clear on what I want to achieve and when it's achievable.

Insurance is only protection for me. I also do not expect insurance as a way for me to increase my net worth. It's a surplus if it does.

Thus to me, I don not mix these 3 together. Reason being if I lose in my investment portfolio, I still have my savings and insurance.
If for some reason, I've claimed my insurance; I still have my savings to support me and investment which helps me generate income.
I don't want to be in the position where I lose out in everything when one of the "bundled" product failed. i.e. when I claimed my insurance, my ILP automatically is gone; so what's my future? Savings and investment is gone with it if one relies solely on ILP as a all for one tool for Savings (or forced savings which sales like to propagate) + Insurance + Investment.

You may call me old fashion. Guess a lot of younger investors are terming me as old fashion although I'm only in my 30s.

Thanks for the reply guys....

Any advice for current ILP holders?

Should  I surrender my ILP, since I am afraid the premiums will be too much for me too bear in the future, and start looking for buy Term or  whole insurance etc..