The reason why I bought ILP for my children at age 2-3..

1) you can have various coverage (ie. payor benefits) all lump into this policy.

2) medical coverage is much cheaper than that buying a standalone card, if you calculate the monthly insurance chargews deducte, the total cost of the medical coverage is like 30-40% cheaper than buying a standalone medical card. Why medical? Well, things happen so having a medical is important as I have bad experiece with goverment hospital..

3) I understand that insurance charges increases significantly , but only if someone is after a certain age >30 or >40? i think?? ILP is cheap when someone is young.

4) I insist on minimum coverage of Life & TPD allowed in this ILP, as a forummer here mention, we don't need money becoz of children's death.. So, by doing this i hope i will get more units at the end of each year.

5) This ILP allows me to do fund switching 4 times a year, for free...which is good.. As I do follow market's condition. So, ILP no not really for lazy ppl as claimed?

6) I may not see any return the first 5-6 years due to insurance charges as well as the % of allocation of my premium into the unit trust.. But If i do aim for 20 years tenure and i do market monitoring and switch funds accordingly... I do think that ILP is ok for a lil bit of saving (be it their wedding gift when time comes, or helps in their education if necessary) and good coverage ..

errr...don't know if i have anymore..

It may be a bad choice, but that's my choice.. Comments are welcome to correct me..in case you are right, then i will have choice to cancel one of them, which i just bought last year ..

1) well in fact I have all of them that you mentioned.. So why still an ILP? While life or 37 CI coverage is ignorable, but TPD and other side benefits like payor benefit is something that I want to have .. Do you have payor benefit in standalone medical plan? Upon payor deseased (I want to transfer this responsibility to insurance company), at least I know my children still got this policy in-forced. So , yes , i want a life insurance product.

2) I do calc about how much I paid in every year for the medical charges that was deducted from my units (in $). How much would you have to pay for 400K lifetime, 115K perannum medical c. if you were to buy a standalone for children below 18? Not less than 500 i presume (u can get cheaper quote from general insurance company and compare)... but for my ILP, total deducted is merely 300+.

Again, my point is, anyone covering my children's medical should I go down?

This post has been edited by numbertwo: Jun 5 2009, 02:55 PM

What if 'Portfolio withdrawal' condition is met? Can the insurance co. still tells you it is 'guarantee renewal' ?

Nevertheless, you should insist the agent to proof you that in the event of claims happened for a particular illness, will they exclude this potential coverage in the renewal year? I heard that some will add in exclusions clauses, or increase your premium in order to get the same coverage.

Hi,
Care to explain what is your definition of "guaranteed renewable"?

My definition is :
1) so long as the insurance co. does not withdraw the plan, I'm allowed to continue up to age xx unless i've used up the lifetime limit
2) Even if i suffered from a particular illness and hospitalized for long period of time, insurance co. should not reject my next renewal, or include new exclusions during renewal
3) I understand that premium can be adjusted, not guaranteed. But in case of increment is deemed necessary, it should be on portfolio basis, and not on individual policy basis. There is this fine notes in some policy brochure "The renewal premiums is not guaranteed and the company reserves the right to revise the premium rate applicable at the time of renewal. Such changes, if any, shall be applicable to ALL POLICYHOLDERS irrespective of their claim experience.....".

Is this the same as yours?
Pls share.

Pru med card, as usual, is attached to a Life plan, that's why it's almost double. I got those Pru quotes b4...and the agent said Pru will not sell Med card alone..

What about this type of plan :

Whole life non par, with a slightly more expensive premium than term life but cheaper than Par policy. Breakeven (cash value) is about ~15 years onwards and you are allow to carry a CI with the policy and expiry is age 100. This way you may lock-in a high CI coverage while young. ALthough you are paying a slightly higher premium for the life portion compares to just a term life, but if you believe you will live for the next 10, 20 years you are actually getting sort of a 'free' life coverage as the cash value will out-grow your premium after 15 years..

I got a quote on this type of plan. Female age @ 34, a 100K CI costs RM843 - till age 100.

just to share.

Life 100K at RM1134.

Yes, no surprise , we all know there is no free rides.