As posted before, treat it just like buying combo mean vs ala-carte.
Combo - you see it "cheaper" but you need to buy more stuff and pay more.
Eg. buy a combo meal, you get burger + drink + fries = Rm15

Ala-carte - you see it more expensive, but you pay less.
Eg. Buy only burger = Rm10.

In the end of the day, for ala-carte, you have extra Rm5 in your pocket vs the "cheaper" for combo at Rm15.

So you can't say which is cheaper or worthwhile, it depends on the situation.
If you want to invest in UT + buy insurance, then ILP may be a good option.

But if not intended to invest in UT and has more flexibility in cashflow, then standalone may serve a good option.

Please be reminded, the UT portion in ILP, there may be around 5% sales charges incurred as well. And the UT may suffer losses instead gain, those projected return in the ILP proposal is based on previous years market track record, they do not guarantee future will be the same, it can yield a loss instead of gain, or a better gain than in projection in market condition is favourable.

ILP a more simple term = Unit trust (mostly equities) + insurance combo.

This is base on 25 years old male, non smoking. Take this as reference, different company has different price increment. I just roughly do a simple comparison chart, and there's actually a lot of other factors will take in count on this.


This post has been edited by HoNeYdEwBoY: Apr 14 2019, 04:33 PM

Had a further look at my company group insurance, it is as follow:

Personal Accident: RM150k



Term Life: RM100k



Basic Group Health Plan:
Room & Board - RM150
Basic Group Health Plan Limit (per disability) - RM18000

Supplementary Major Medical Benefits:
Overall Limit - RM30000
80% eligible expense if over limit (If I did not read this wrongly)

The group health plan I would presume is actually the medical card, which I feel the coverage is not exactly great isn't it?

Group insurance usually share among others with the limit, this one you need to clarify with your HR department. Nowadays medical limit are usually recommend up to 1M limit one.

thanks for the data.....my neighbour made a query.....
can confirm the maths?

if the true variance is just 20k.....then the ILP is not as 'untung" as stand alone????



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ei my bad on my maths

ILP is good because it has cash value inside and there are extra rider like "Waiver" which standalone medical card doesn't have.

Wait lemme understand more,

If I buy three standalones (Medical Card - Life Insurance - Critical Illness), it has a higher total premium than an ILP (with all three combined) only after 20 years?

In the excel you have shared, I see the ILP costs more for the first 20 years and then the standalone one will cost more after that. (This is assuming the generated returns from the ILP covers the increase in premium)?

But in your excel (Non-ILP) the medical card is only a medical card, without the addition of Life Insurance and Critical Illness. If the standalone were to consist of all three (Medical - LI - CI), would it still be lower in premium compared to ILP from the beginning?

after makan,...stomach full....do some work....adding on to your neighbour query.....
....
....35 yrs...is the meeting point

This post has been edited by MUM: Apr 14 2019, 11:29 PM


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Alex teach u easy convert ilp to term like... How? Monitor ur cash value...

Monitor your insurance charge per mo

Leave minimum cash value inside.

Then it functions like term. Sekian.

Just to further add on for clarification:

The argument is that ILP costs more in premium than Traditional and people are better off with Traditional as you can use the extra from the lower premium of Traditional to invest in something else (e.g. ASNB, Shares, etc.). For ILP there is absolutely no guarantee at all for the returns that maybe generated from the unit trust, thus in the event the return does not cover the increase in premium, you need to fork out the extra.

However through some further reading, if you were to bundle ILP (Medical - Life - CI), the premium will cost a little less than the traditional standalone of all three together. As cherroy mentioned, you pay less if you just buy the burger as oppose to a full meal set. However if I were to buy the same things in a full meal set separately, e.g. Burgers + Fries + Drink, it would cost more than buying the three together as a 'Meal'.

So assuming both ILP and Traditional with the exact or similar coverage, the ILP will be cheaper (by a little?) in premium (from the beginning?). The risk with ILP is that if the returns are bad, you would have to fork more for premium to cover the increase in cost, but that is the 'chance' of paying more due to bad returns. For traditional, it is 100%? certain that you would need to pay more in premium as you grow older. The greatest risk I see is that if the ILP's investment portion made heavy losses to the point where the increase in premium is greater than that if you went for traditional.

This is all in the assumption that the ILP will cost (approximately) the same as the traditional standalone with (somewhat) similar coverage. (Medical - Life - CI)

Disclaimer:
My assumptions above could be completely wrong as I am by no means an insurance guru or agent, I am very new to all this and want to understand more regarding the logic. Do correct me if you see fit. Thanks for the replies thus far Sifus!

If you calculate like that, standalone will be way cheaper than ILP. However, the main point of having ILP will be the additional riders on it and in a long run *touch wood* if you terkena TPD or CI then your "Waiver" rider can kick in then you don't need to pay rest of your life. The second scenario will be, if you having a standalone medical card and you forget to pay the premium or you have insufficient money to pay; which will cause your policy to be dismissed upon the payment date. But if you having ILP which has cash value in it, that will sustain the plan until you make the next payment and of course there will be a lapse date you need take note on.

Example of plan (Standalone):
Great Medic Extra 150
Premium - RM 878 (Only can pay half yearly or yearly)
Room & Board - RM 150
Medical Limit - 990K (Include rider)
Overall Lifetime Limit - No limit
Accidental Death Benefit - RM 10,000

Smart Legacy
Premium - RM 300 per month (A year RM 3600)
Sum Assured - RM 500,000

Additional Riders:
Critical Illness - RM 200,000 (Depending, can be adjust)
Waiver - (TPD/CI)

Example of plan (ILP):
SmartProtect Essential Insurance 2
Premium - RM 200 per month (A year RM 2400)
Sum Assured - RM 12,000 (Minimum, can be adjust)

Additional Riders:
Critical Illness - RM 12,000 (Minimum, can be adjust)
Critical Illness Smart Early Pay Out - (Depending on how much)
Lady Illnesses
Waiver - (TPD/CI)
Hospitalisation Income Benefit
Accident Benefit

Smart Legacy
Premium - RM 300 per month (A year RM 3600)
Sum Assured - RM 500,000

Additional Riders:
Critical Illness - RM 200,000 (Depending, can be adjust)
Waiver - (TPD/CI)

Any prudential insurance agent here? This is the package my wife sign up to insure my kid from birth. Is it too much? I'm paying RM188 per month.

i would reather ask.....
can i afford it?
what is the RM188 pm in relation to my + spouse income in % terms?
would we "spend" that for a better sleep at nites for both me + spouse?
could we or do we dare to do some trade off over that amount in relation to our "feeling good and good to have?"

The question is, how much % of your salary you used to purchase this policy?

P:S: Great Eastern also have this plan starting this Monday. 😜😜

This post has been edited by HoNeYdEwBoY: Apr 14 2019, 11:49 PM

Dear sifus, my Prudential agent introduced me a cash value life insurance plan called Pru-wealth. Is it a better plan compared to a conventional term life insurance plan? Any other insurance company selling similar product?

Thank you,
Rain

Sorry I don't know much about your background, can't tell if it's beyond your means or not

Probably you can try to explain about this plan in here that your agent has preached and I'll see if it suits you?

Hi bro, which do you think is very important in life insurance plan; cash value or benefit?

Anyone have experience claim for insurance cover Singapore and Malaysia

Pru wealth is an ILP....(investment linked protection plan)
comparing it with a non ILP?

read up from last page...there had been some discussion about it very recently......especially those by HoNeYdEwBoY

then,....as normally suggested.
a) You should assess the affordability and suitability of the product (including optional benefits) in relation to your financial goals and risk appetite.
b) Buying life insurance policy is a long term financial commitment.
c) You are advised to choose the type of product(s) that best suits your financial needs.
d) You are advised to read and understand the insurance policy

To achieve this, may i recommend that you speak to your agent and preferably if possible from another companies to perform a needs analysis and discussion and assist you in making an informed decision.

This post has been edited by MUM: Apr 15 2019, 09:54 AM

This is the same for both traditional/standalone and ILP medical.

Both cost of insurance definitely will rise together with ages one.
Just in ILP, they utilise (or in other word withdraw/redeem) the unit trust to pay for it.