If your policy is an investment linked policy then you will get death payout formula as below

Death sum assured plus cash value + if any other bonuses applicable

Meaning if your death sum assured is 50k
And your cash value is 50k

Upon Death you will get 100k

However if you choose to surrender at that time, then you will get back 50k

Hi, Sifus, can check my sister' AIA ILP whether is overpriced or under coverage? Does she need to change another better plan? Thanks!


35y.o
White-collar
Non-smoker

R&B: 150
Life: 50K
TPD & ANN BONUS: 50K

Muiti CI: 50K
Femichoice Plus: 30k
MCP 150 (Medicover Plus)

Monthly Premium : RM200
Estimated Sustainability Age: 80 years old


This insurance needs to pay till yr 2085?
Maturity or expiry date: yr 2085



Is this Premium Fee Waiver?
Enhanced advanced payment and waiver of premium (EAPWP) Rider is issue free to standard life

What is she looking for herself now ?

Any further financial background about herself ?

She feels like it's too long paying the premium till 80yo

And the CI is kinda low



"Any further financial background about herself ?" Such as?

for her age & working as executive . . . CI needs to be min 100K

"She feels like it's too long paying the premium till 80yo"

The plan with RM200/m able to sustain up to age 80 does not mean she needs to pay up to 80
usually inv-link plan will have certain cash value after number of years
i believe when retirement age aprox 25 years later, the plan should have enough cash value to sustain
another 10-20 years. Of course a lot of other factors need to be consider as well such as fund performance,
market condition, medical inflation & etc etc

The projected sustainability is provided you continuously to contribute 200 monthly until 80 years old otherwise it may not sustain till then. Unless you're willing to pay 2x - 3x more premium now in order not to require to pay after X amount of years and it will self sustain thereafter, not accounting if the fund performance is bad / increase in medical inflation cost / etc factors.

As for CI, depending on her annual income, it will be best to have atleast 3x - 5x of your annual income minimum.

Which is why more info about herself such as her current income, phase of life, dependents, current investments, cash on hand. assets, liabilities will tell me more about herself.

bro, I think the highlighted statement mentioned is incorrect especially the current regulation requires all insurance companies to show how long a policy is sustainable in the annual statement every year.

By telling the client to not continue making the regular monthly premium payment after [25 years later] will be detrimental to the insurance policy especially medical policies would constantly be reviewed for increase in cost of insurance, what in this 25 years time or 50 years later, this person will certainly be required to do a top up from time to time if that happens, what more to suggest that they could stop making payment after 25 years later.

bro, I think the highlighted statement mentioned is incorrect especially the current regulation requires all insurance companies to show how long a policy is sustainable in the annual statement every year.

its only illustration amount . . . as i mention there is a lot other factors need to consider in as well
logicaly nobody wanna continue to pay their insurance up to age 80 or beyond. But from what i see
across the ins industry, medical cost have been incresing every year. . . i doubt it will be sustainable

hi puputeh, with the RM200/month premium with all the benefits above, it sounds okay to me. only thing is whether the benefits of the plan sufficient to cover her financial risk. usually 50k CI is really considered as low (of course this still need to be discussed with your sister). and yea, for medical plan, you need to pay so long you are holding the medical card. life insurance it depends on the duration (term) of coverage needed.

hi harvin6, it depends on what life insurance plan type that you are referring to.

investment-linked life insurance = there is no maturity for this plan but however certain ILs have coverage term. this plan doesn't guarantee the amount that you will get back though. so it depends upon surrendering/end of term, is there any amount that you can get back.

traditional life insurance plan = this type of plan comes with maturity benefit. when it matures, yes you get a certain amount back.

term life insurance = a plan that has no cash value/surrender value. you purely pay just for the life insurance. when it reaches end of the term, you wont get any amount from the plan.

Thanks all shifus

This post has been edited by puputeh24: Jan 6 2020, 07:48 AM

great info thank you very much for your reply.

thanks for the clarification

Seems like many ppl get scam by AIA telemarketers recently or perhaps since years ago, bank money get deducted without even agree to buy the policy
No offense but now I feel like AIA is the worst one (lack of customers) since they need to perform such market strategy..

This post has been edited by apalexar: Jan 6 2020, 03:48 PM

read in a thread previously....telemarketers conversation with customers are recorded....if the customers feels he is billed for something that he did not agreed to buy....he can always seek back the money.....

they partner with Public Bank and Citibank to use their database to market to you guys.

It's not really a scam but you just don't understand what you've buying because the sales person will zoom through the TNC on the phone real quick / probably you don't understand what is the person saying.

As long as you said yes to all, then they will use the recorded audio as evidence that you've agreed, no signature required.

How I know ? well I played with them on the phone to find out how the modus operandi works

My take ? after seeing a few people with similar experience, noticed they bought this plan but they don't really need it. In the end they just cancel it

Hmm why I'm saying that it's a scam because never said yes/agree to buy it during the conversation but the other day bank money straight get deducted and policy generated.
Search through AIA FB and there are multiple of same cases too lol..
Btw it's my friend’s gf that kena scam, according to him he say that she never mentioned “DONT WANT” word in the conversation, so I guess if someone never mentioned don't want then it means want?

lol well you can always ask them to dig back their pre-recorded for the "No" that they've answered, otherwise you can still request to free-look the policy as I'm sure the insurance will not honor any refund request after the free-look period unless you have evidence to show that you didn't want the policy from the phone recording.

Normally how long is the free-look period?
I do hope that the refund is under processing or else AIA KL office is going to get some troubles

according to this....
Free Look

You may cancel your life insurance policy by returning it to your insurance company within 15 days after receiving the policy documents. The premium that you have paid will be refunded to you.

http://www.insuranceinfo.com.my/choose_you...intPrefLangID=1

the T&C is supposed to be, you need to receive the policy book and from the receive date, you have 15 days to consider on the policy. If you return the policy within this period, you can get back 100% refund.