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

This post has been edited by brian3455: May 13 2009, 11:45 PM