Investment link premium may be looked fixed, but it is not guaranteed forever, as it depends on cash bonus or investment return from the investment portion to compensate.

If the investment is making a loss, insurance company may send "love" letter stated, not enough cash/investment portion to compensate the coverage premium, so need to top up...

This post has been edited by cherroy: Dec 30 2015, 01:45 PM

Too bad, there is no such thing of fixed premium for medical insurance.
If there is, I reckon it will be the hottest selling insurance already.

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.

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.

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.

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.

PA coverage scope is different with CI.

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.

Other than the guaranteed portion, the rest of cash bonus or cash value is not guaranteed.
The projected figure is based on some historical data on their fund invested etc.

It is not guaranteed to be making a profit.
It can yield a loss as well for investment linked that invested in trust fund if market condition is not favourable, just like what is happening right now.

Standalone premium all goes to cover the medical cost/premium.

ILP - One portion goes to UT/investment, one portion goes to medical premium coverage.

So ILP premium will be way much more than standalone one, as it needs extra portion of money goes to investment.

Both medical coverage premium goes up according to age, and in ILP, it will draw out the investment portion that accumulated previously to pay up for increment, until it become insufficient, then you have top up, and insurance company will send letter notifying clients to adjust the premium upwards or else policy lapse.

The agent did not paint the exact picture.

ILP premium is not guaranteed to be fixed until maturity generally.
Current ILP's proposal and premium may be projected can last until maturity based on last few years good performance in investment, but it is not guaranteed to be.

If the investment portion is making a loss just like this year, (as many UT are making a loss lately), then ILP may need to see the premium adjustment faster when medical portion cost increase time.

Mind that the investment doesn't guarantee to be making money/profit, it can yield a loss as well.

There is no such thing of "how much should I insured myself".
It depended on individual financial affordability, preference, and situation of financial dependents.

Just remember insurance is not everything in your life, and it won't able to cover every sickness (even your signed up 10 mil of medical coverage), so you need your own saving to help yourself as well.

I had teeth root canal problem not a few times, and the pain can cause one loose sleep overnight, so painful, (those experienced before will know well), but medical insurance is not covering those medical expenses.
And the operation easily cost a few thousand for full treatment if one doesn't want to opt to remove the teeth simply.

Please do not paint medical insurance is paying up every single medical treatment, the policy never said it does.
Every insurance has its own scope of coverage.

We do not want to see if anything happening on client then the client fail to claim compensation from insurance then accuse insurance is cheating them.
Insurance never cheat.

Eg. classic and typical situation may occur.
Hey agent, last time you said insurance is the only thing to pay for "unknown future medical expenses", now I have medical expenses on the root canal sickness, why insurance no pay me?

Root canal cause heart disease? Thank you such an advice.
Ya, remove all teeth, everyday "drink" porridge then. Another valuable advice.

Medical insurance doesn't cover cost of organ acquisition if the serious disease needed organ transplant.

As said, it has its own scope, one needs to have understand it clearly, instead of come with blatant statement "insurance is the only thing to pay for "unknown future medical expenses"
There are some unknown future medical expenses that are not covered by insurance.

I know medical insurance won't cover any dental issue, that's why I fork out my own money from my saving to pay for it, never in my mind to ask my medical insurance to pay for it.

Just I feel it is more appropriate to let people know that insurance is not covering everything, and some people may misunderstood the statement of "insurance is the only thing to pay for "unknown future medical expenses" entirely, that they may think I have the insurance already, I do not worry any medical cost in the future, this is not a right perception.

I understand it clearly and fully understand how insurance works, and never against insurance.
In fact insurance can be a good financial planning tool, if one has good understand and clear about it.

This post has been edited by cherroy: Feb 27 2016, 10:02 AM

You do not need nominee signature to change the nominee.

What if the nominee already passed away, how to get the signature then?
It doesn't make sense at all.

Something really mix up already or the admin person in charge mix up the trustee and nominee matter,
With "unknown person" in the nominee, the person will get the insurance money after you passed away......
Really scary to hear.

Thank you for the info.

But still it doesn't require old nominee's signature to change to new nominee as mentioned by the forumer's case.

This is getting more serious, that we have 2 cases on "need nominee" to sign off the policy changing...

This shouldn't be happening in the first place.
Policy owner is the one who has ultimate said.

This is the first time I came across such issue.

It doesn't state that nominee consent needed if want to assign new nominee.

It just states that trustee consent needed.