I don't know about others, usually I use ILP to fix the premiums, especially with medical/health insurance.

As for CI and Life insurance, you can go with a separate policy or include it into your ILP as well or buy separately on its own.
Best to meet up with your agent or contact any of us on your own and bring your former agent (your friend) along because he/she would best know about your existing policy, and how to complement it in your best interest.

This is not "fixed", just bundled together so that it looks fixed.

If the investment part cannot generate enough to cover the cost of medical premium, policy holder still need to top up latter.

ILP premium is looked "fixed" due to bundled with investment of UT.

eg.
Standalone medical pa premium at age 30
Rm900, increasing every year due to age and cost of medical.

ILP package the medical together with UT investment with a projected fixed premium for 20 years
RM2000.
RM900 goes to pay the medical, Rm1100 goes to investment UT.

So the ILP can be fixed throughout many years at RM2000, as even the medical premium rise, it just allocated less into investment. Say next year RM1000 goes to medical, the rest RM1000 goes to investment. Another few year down the road.
RM1500 goes to medical and RM500 goes to investment.

While when the medical premium/cost goes beyond Rm2000, let say RM2500, insurance company still can allow the premium to be the same, as it can draw down the investment part of fund (be it accumulated capital or return) Rm500 to compensate, until one day, the investment part portion not enough to compensate, then insurance company may require one to top up.

You cannot cover medical until 90 with a fixed premium, as insurance company need to assess the medical cost rising from time to time, as well as policy holder risk due to age.

Insurance exist is not for charity, they need to assess the risk of policy holder as well as claims or medical rising cost they may need to pay which in return deciding the insurance premium.

You may opt for traditional policy, the policy will not lapse with fixed premium, but your premium paid will be 2x - 4x more.

Of course. If cost in the main factor, then you have no choice but to opt for ILP plan which are lower in premium as compared to traditional plans.

Hi All,

Need some advise.
Recently quoted with an Investment Linked Plan with all these products.
Is it necessary for me to purchase all riders?
Don't really understand what's all the riders for.
I do have an AIA medical card from my company.

AIA
A-Lifelink

Riders
-Disability Care
-CriticalCre
-WaiverExtra
-Med
-MedBooster
-Total AccidentShield
-RCC
-HospitalIncome Extra

Agent earned good commission from your premium, it should be the agent job and responsibility to explain it one by one with details.

As a rule of thumb,
Don't understand, don't commit until fully understand what it is about.

There is some criteria you need to assess in terms of your current living lifestyle, single or married, commitments and many more. Then what sort of basic coverage you have currently. Then work from that way upwards.

E.g cover basic necessity (medical card)
cover commitments (debts/liabilities)
cover cost of living

This post has been edited by lifebalance: Jan 4 2016, 06:23 PM

I hear what you're saying. But I pray that you can also hear what I am saying.

ILP package is meant to be sustainable till the insured attaining age 100. Not 20 policy years.
Shorter period means lower premiums to pay. Don't forget if you want cheap, cheap is what you'll get = shorter sustainability.
I apologize in advance because now you're sounding like a person who wants Grade A for the price of Grade C.
At best you'll get a nicer looking Grade C if you're paying at a Grade C price.
_____________________________________________________

I urge you to look into the cost of insurance between an ILP medical rider and a standalone policy.
The difference over the years is, i pray, a big enough a sum to be significant to you.

Secondly, I also would like for you to take a look into the fund performance of these insurance companies under their ILP. I can't guarantee the future performance, but tell me if these funds are so bad that they are bound to be doomed?

Thirdly, I would also ask if you invest into anything at all? UT? Property? Shares, derivatives, futures?
If you don't, then your arguments against ILP makes sense.
If you do, then for the benefit of all the forumers here, please share your portfolio (in ratio, picks, etc) without revealing your amount of monies with us? You seem to be getting guaranteed returns!

Ever encounter primary school students blaming the education system for their bad grades?
Come on, we're better than that here.

ILP "fixed premium" will be higher than standalone premium, eg.
if standalone medical premium is RM900, ILP could come out with RM1500 or even more.

As ILP needs some money to channel to investment part.

Yup, cost of medical coverage is lower than standalone one (as insurance company can make some money through investment portion, hence can provide cheaper cost of medical coverage).
There is no free lunch.

Pay grade A premium will get grade A coverage.
Nobody expected pay grade C premium to have grade A coverage, everyone know insurance company is not charity organisation.

The agent should be the one explain all what is ILP about, and not directing some one doesn't know well about insurance, by saying if one wants to have fixed premium for medical coverage, ILP is the one provide fixed premium for it.

This is not a right message to someone totally doesn't know about insurance. He/she may totally misunderstand it.

One day, if the investment portion performs so bad, and policy holder need to top up the discrepancy due to insufficient fund from the investment portion to compensate the cost of insurance, then how?
Blame the agent never said or can claim from agent?

Whatever posted, is just want to channel a correct understanding about ILP.

If something is unknown aka investment return of ILP portion is not guaranteed then just explain it to clients, what is about.

While if the ILP fixed premium is not guaranteed to be fixed forever, and it only can be fixed if the investment return hit the projection, then just tell so.

It is as simple as that.

Why drag so many issues until need to show portfolio etc, and seems like so scare that people knowing the fixed premium is not guaranteed to be fixed forever?
It only fixed if everything fall into the projection or better than the projection.

ILP is a simple bundled or combo product. It is not a magical tool. It has its own strength, but has its own drawback as well.
I know ILP has good commission, but it is still agent responsibility to do the explanation about its mechanism especially for newbie in insurance, instead of just a simple statement ILP has fixed premium, you don't worry about raising premium like in standalone policy.

Aya!.... I was just informed it's not ong to talk about insurance right before chinese new year's.

I think I'll revisit this again some time in mid-feb. Thanks for chiming in people! 8-D

ILP premium is not fixed.

It is also being mentioned in the Sales Illustration that the insurer reserves the right to revise the fees and charges by giving a 90 days notice period.

The insurer will increase the fees and charges (which will directly affect the premium paying) if the claims gets out of hand and that is the only way to maintain that portfolio apart from increasing the pool by getting more sales.

This is on top of the insurance charges which will increase by as you grow older.

This is a professional and responsible advice come from a honest agent.

This statement is a crucial and important advice especially for newbie in insurance.

ILP "fixed premium" will be higher than standalone premium, eg.
if standalone medical premium is RM900, ILP could come out with RM1500 or even more.
As ILP needs some money to channel to investment part.
Yes, the premium is higher now. However, over the long term when accumulated, it is in actual fact, cheaper.

Yup, cost of medical coverage is lower than standalone one (as insurance company can make some money through investment portion, hence can provide cheaper cost of medical coverage).
There is no free lunch.
I would like to enlighten you about the few available insurance schemes.
1. Traditional Life Insurance - Not transparent, not flexible, very rigid.
2. Universal Life Insurance - Not transparent, fairly flexible with some options, still pretty rigid.
3. Investment-Linked Life Insurance - Complete transparency, very flexible, very accessible.

The money made from ILP investment portion goes directly to the customer's account value, which the customer can withdraw at any time for any purpose. After withdrawing, of course it affects the sustainability of the policy.
On the flip side, customers can also put more into the account to buy units for reasons such as insufficient value in the account to pay for the cost of insurance, which have to be paid anyway to sustain the policy. Or the customer can instruct the policy to not use the money from ad-hoc top-up to pay for the insurance costs.

Pay grade A premium will get grade A coverage.
Nobody expected pay grade C premium to have grade A coverage, everyone know insurance company is not charity organisation.
Welcome to the real world. I'm sure by now you've come to terms that an insurance policy does not equal to a social safety net.

The agent should be the one explain all what is ILP about, and not directing some one doesn't know well about insurance, by saying if one wants to have fixed premium for medical coverage, ILP is the one provide fixed premium for it.
And I completely agree that the agent should explain what ILP is all about, and the customer shouldn't buy unless they know well about the features and benefits. But my friend, can ILP give you a fixed premium for your medical coverage? You have to pay a bit more, but you will also get exactly what you want, which is a fixed amount of premium to commit so it is predictable, allowing for more definite plans with their money.

This is not a right message to someone totally doesn't know about insurance. He/she may totally misunderstand it.
Would it be better for me to match their budget now, and have them pay more as they age?
Why would anyone do that when a lower rate with better features is available right from the get go?
Would you do that?

One day, if the investment portion performs so bad, and policy holder need to top up the discrepancy due to insufficient fund from the investment portion to compensate the cost of insurance, then how?
Blame the agent never said or can claim from agent?
Should that ever happen, there are features in ILP to guarantee your coverage for at least 5 years on the condition that you have never missed a premium payment, or withdrawn from your policy account value.
You can blame the agent and IMO the agent should also bear the cost to top-up if the customer bought at the premium as recommended by the agent.

Whatever posted, is just want to channel a correct understanding about ILP.
Thank you for your kind initiative! All of us in the industry is forever indebted to you.

If something is unknown aka investment return of ILP portion is not guaranteed then just explain it to clients, what is about.
The industry has been doing that. And we go above and beyond just sharing about a product and show you exactly what ILP can do for you. It may or may not suit your management style, but it is the most transparent and the most flexible option in the market.

While if the ILP fixed premium is not guaranteed to be fixed forever, and it only can be fixed if the investment return hit the projection, then just tell so.
Fortunately it is not sold online isn't it? Don't you think it is such a blessing that you can have an agent for you to really grind and squeeze every bit of information in person?

It is as simple as that.

Why drag so many issues until need to show portfolio etc, and seems like so scare that people knowing the fixed premium is not guaranteed to be fixed forever?
It only fixed if everything fall into the projection or better than the projection.
Well, to be frank you do appear to be giving the impression that non-guaranteed investment return was a foreign idea to you. Hence I became very interested in your portfolio.
The ILP plan and its mechanisms has been explained by many here in V2.
And here you are harping on "what if it fails? It's not guaranteed to be fixed forever! etc..."
Since you mentioned, i'll lay it down "when it fails":
1. If you have never missed a premium payment and never withdrawn from your account value, you will have 5 years of guaranteed coverage. After 5 years, you will have to pay the difference.
2. The cost of insurance for your medical rider will be lower than if you were to buy a standalone medical plan.
3. The accumulated total that you would have paid for your medical rider will be lower than if you bought a standalone medical plan.

Come on, we're way better than just "cheap" here in this forum. Unless "cheap" is what we are to you.

ILP is a simple bundled or combo product. It is not a magical tool. It has its own strength, but has its own drawback as well.
I know ILP has good commission, but it is still agent responsibility to do the explanation about its mechanism especially for newbie in insurance, instead of just a simple statement ILP has fixed premium, you don't worry about raising premium like in standalone policy.
Why would you think we are so eager to meet in person? What exactly do you think agents do in a presentation appointment? Before the agent says "sign here", we would have met at least once, I would know about your work, your spouse, your kids, your plans for the future, your worries and concerns along the way, and you would know all that about me as well. Trust me, I want to know who I am acquiring as a customer, and you would most definitely want to know your agent too. Want to know if your agent is a good agent with good advice? Just observe the people that he hangs out with because they are likely his customers. If they are doing well, he contributed to that in a greater or lesser way.
Every agent prefer 35% sales commission over 20%.
Traditional life insurance gives us 35%.
ILP gives us 20%.
But lots of agents sell ILP because many times it is just a better arrangement and it keeps a lot of options open and available for the customers too.

Looking for standalone medical card for a female aged 54, currently have a few quotes from GE, AXA, AIA. Also have from @Roysteven.. Anyone has any suggestions/quotations?

Looking at room and board of ard 200-250RM.

If a person got CI can buy PA or not?

PA coverage scope is different with CI.

So if i bought a PA now and died of CI i will not be compensated rite? But if i was in accident I can claim?

Yes, if the death is not due to accident, PA won't compensate.

As the name implied, Personal Accident insurance.

The scope of coverage is only accident related.
Sickness, natural death is not covered.

Can, you can buy PA even if you have CI currently.

You can also get cancer coverage with AIA should you have any CI non related to cancer.

PA is important aside from normal life insurance as it covers the person for accidental death.

This post has been edited by lifebalance: Jan 5 2016, 05:28 PM

Bro, sorry if offending for reality. We can take our time to compare what ever we like. But as of age 54, the chance of insurance company approve without loading and exclusion is quite low.

100% insurance company will require any applicant who above 50's to have medical check up and the medical report rarely will be perfect as those 20-30's health status. (If you know any insurance not require medical check up for 50s, I will be interested to know)

As many said, Insurance company are not a charity, even a minor health issue such as high cholesterol for a 50's, they will rather reject the applicant then taking the risk to accept. This might more stringent in standalone than ILP due to ILP is a life insurance.

When we have money, we can shop and buy anything we want. But this doesn't happen in health insurance, as they only accept those who still strong and healthy.

It is important to know that, get a medical plan when we are still young and healthy. Not when we are getting old and sick.

This post has been edited by conqu3ror: Jan 5 2016, 05:44 PM