Hi HoNeYdEwBoY, I'm an Equipment Engineer

Will you expose to a lot of machinery ?

Smart Legacy is more concern on life protection and as legacy for your family.
Smart Protect is a comprehensive coverage as it may include life, critical illness and medical card in one plan.
first of all, you may find out the reason you bought these two plans. both are different features.

Yup my workplace does provide insurance, it is by AIA.
Its AIA Plan 150 and has personal accident plus term life. Term Life covers about RM100k and Personal Accident about RM150k. However if I am not mistaken it only actively covers when it occurs during 'work hours'.

I do not ride a bike, I drive a car to work. No known critical illness history in my family, be it father or mother side.

My job is a consultant.

I am still not sure about the regular insurance (non-investment) compared to the investment-linked ones because I always thought insurance main purpose is to mitigate risk rather than seeking investment returns.

You don't take investment-linked insurance plan (ILP) as an actual "investment". The actual benefit of ILP is to handle future increment of insurance charges thus see what I posted before this.

ever made the comparison by calculation?

assuming "everything" is the same, except the premium....

getting the non ilp and putting the differences of premium into a 6% pa vehicle, then getting that accumulated saving + % returns to pay for the cost differences of the premium increases in future.....
in the end, will it generate more "saving" than that similar ILP product?

This post has been edited by MUM: Apr 12 2019, 08:45 AM

for those following this issue....more about TS and conditions as below.....

You don't take bike thus very less chances of getting a serious accident.
your company provided you with PA and term life plans....hopefully this AIA 150 plan is a medical coverage plan....

On "What sort of insurance can I and should get?"

may I suggest that you think of this first before the above questions....

do you think your current employer's provided insurance coverage is enough in the next 5 yrs or more?
since your current insurance is provided only if you are with them....you will have any plan of leaving or can they terminate your employment?

hopefully the above questions can help to "set' some factors into consideration when answering the needs of your question.


This post has been edited by MUM: Apr 12 2019, 09:25 AM

No it should cover you at any point of time, this is not SOCSO.

As mentioned before ILP is not only for investment purpose, the cash value is used to buffer future increment in cost of insurance which you may not require to top up for it unlike term insurance.

One thing is for sure is that the savings from getting a non ILP is real and actual cash" whereas cash value for ILP is not even guaranteed. The savings can then be invested into higher yielding investments to pay off the increase in premium in the future. Or maybe put it in an FD with guaranteed returns. Certainty vs uncertainty...

oh my the long argument about investing urself vs insurance again, not gonna go there.

If you can invest better than insurance company, go ahead with ur own investment.

Insurance company's ILP's only invest in a unit-trust type of fund, nothing special about it.

Non ILP plan aka standalone alone medical card are most likely has increment in price from time to time. Therefore, you might pay even more in future. I will try roughly make a comparison table for everyone, but please don't refer to it at 100%.

ILP plan has increments of the cost of insurance, but because of the way the plan was designed, you already have paid upfront for the increment

I am not too well versed in insurance altho I am researching and learning more about it. Man I thought motor insurance was complex, but this is a whole new level lol.

Anyways, back to my predicament. I suppose the coverage seems to be adequate? It's actually this one I think for Plan150 by AIA: https://www.aia.com.my/content/dam/my/en/do...ar_Brochure.pdf

I don't have any dependents so medical card should be the most important one for me if I'm not wrong. I always thought that Personal Accident and Life Insurance is the same? Like in the event you die, both would cover you no?

So the higher premium of ILP (as compared to non-ILP) is used to invest in unit trust, which the returns from it will offset the future increase in premium. What happens should it not generate enough returns? I would be the one forking out more correct? Usually for the exact same coverage for both ILP and Non-ILP, how much more is the premium on average?

Depends how you die. Die due to accident, both cover. Die due to not accident, only life cover.

Not enough returns then you need to match the difference. Depending on your age band and sum assured the difference fluctuates quite a bit. Would be easier if you already have a product and premium to compare...

Best,
Jiansheng

This post has been edited by Holocene: Apr 12 2019, 10:39 PM

For the difference you will need to fork out yourself, can consider treating it like term insurance by then since there is no cash value left and you’re paying the cost of insurance without much investment involved.

I see. I mean I would assume if you die it would usually be accidents no? Non-accident I am assuming things like terminal cancer, someone kills you (which I think its not an accident? LOL), killed while doing dangerous activities, etc...

For ILP is it cheaper compared to traditional stand-alone if ILP has multiple bundles? Or is that not true? Generally the premium for ILP will be higher compared to traditional but if you do combo/bundle for ILP it is cheaper because of discounts given?

ILP is cheaper in the long run because even so insurance charges increase the "cash value" inside the ILP mostly can cover up it compare to stand-alone, it has no cash value or additional add on; eg: Critical Illness with Early Payout (Great Eastern). Mostly standalone medical card cannot add on a lot of stuff one, usually you need to take ILP only can have such privilege to add on more.

must have completed the comparison table to enable below comment.....(mind showing the table?...interested to find the truth)

I am God when I can answer your question above.

I wouldn't say discount but the charges will be slightly lower.