Agree with you, all insurance company will have many hidden clause in insurance policy.

That's why insurance company offer 15 days of free look period for you to study the whole policy. If you found anythings you don't like in the clause, you just cancel the policy and get back your money minus out the medical checking fee (if applicable)

It's part of your responsibility to read up the T&C in every policy you getting, not just depend on insurance agent only. Just like signing S&P, it's our job to read up the T&C before sign and pay anythings. (But i believe many people lazy to do this part)

if I bought a house 3 years ago and insured it under MRTA, can I reinsured the house under MLTA now? Will I get anything from the remaining term under MRTA?

Of cause if the agent close a case by misleading term or over promise, then the agent should be the one to blame. So we all need to do our part and don't 100% believe on the agent's mouth only. Make sure those things that the agent's promise is black and white written in the policy.

A policy can't cheat, if the figure is guaranteed, 100% will be written guaranteed in the policy and vise verse.

No offence, but you sound like been trick by an agent before, can share the story if you don't mind?

Cheers.

Of cause, like I mention the MLTA type 2 with guaranteed return only suitable for those who have spare money and like everything's guaranteed. At least there is some option for them who like guaranteed.

Do you mind work out the spread sheet for us to analyse? Would like to learn more from it too. Just use TS case as example. I'm not sure about others company but the lowest premium for TS case should be rm5719 per year (finance mrta into loan =rm5719/year or MLTA type 3@ rm5719/year. Just assume TS don't have the rm100k to buy mrta with cash). Or you may also use the quotation with others insurance plan that have lower premium that can provide the same coverage of rm1.5mil for 40 years.

Cheers.

Yes, full sum assured is payable in the above case. That's the reason I'm urging everyone to look into high Non-medical limit MLTA, do not get penalize for something you are not knowing in your health condition.

Well, I would like to highlight that making a full declaration of all material facts in the insurance proposal is vital.
Basically the MLTA type 2 is a Whole Life Non-Participating Traditional Policy, it is not possible to separate it into two parts to calculate the IRR and the cost of insurance. However, you are able to compare it with a mere protection MLTA(aka ILP)'s insurance chargers to determine the amount of money in "investment".

Well, you are right, all the products and plans are having their pro and con, you are suitable for the strategy of "Buy Term and Invest the rest" but it may not suitable for the mass market.

Let me explain to you in another form like medical card. The market are having both Standalone medical card together with Investment linked medical card. We all know that both premium is increasing according to age but ILP premium is fixed in a way that to accumulate cash value and hedge for future hike of insurance chargers.

For "Buy Term and invest the rest" people, they would buy Standalone medical card and invest the money themselves. However, this strategic is only suitable for "Buy Term and invest the rest" people and not suitable for mass market because historically has shown standalone medical card's lapse rate is high at older age because people tend not to see the benefit of owning a medical card without claiming it and the feel the tension of "rising premium" from the standalone medical card. In the end, they would just stop paying the premium and it will lapse at the most critical age, ie: age 60 where they need medical card card the most.

However, ILP is very similar with Standalone medical card but it is designed such that it accumulate the cash value on behalf of client to hedge for the increasing of insurance charges at later years. When client reached age 60, he will still continue it as he feels the placebo effect of having saving in his ILP and he might feel the premium getting cheaper and cheaper due to inflation too. With this effort, we are able to prevent a lot of medical card from being lapse.

You might think that the investment return from ILP might not as good as you invest it your own either in stock market or creating a business yourself. It's true but ILP's return ain't that bad, for the past 5 years, our Great Eastern Lion Balanced fund are standing at the rate of CAGR 9%++ which in my opinion isn't that bad afterall.