How old are you right now?

Mind to share this saving table that is provided for GE? First time I'm hearing that GE has a saving table for its ILPs.

Other GE agent here do educate me if it's something new.....

Best,
Jiansheng

Hi,

i would like to ask, why is investment link product is cheaper than any other traditional which is non-participate product?

i.e., im comparing a whole life investment link product vs. term insurance. solely on life insurance without any other rider.

anyone can enlighten me?

thank you.

Not sure if you are looking at pure life investment link product vs pure life term insurance (just cover death, nothing else)

But if that is the case, this is because insurers can sell investment link product as much as they can with almost zero capital, where capital is needed for certain term life insurance (especially level term)

Also, Malaysia insurers tend to focus more on investment link product now, hence it is more well priced (reflect latest mortality, competitive pricing, better underwriting etc) vs term life insurance, which might be priced long time ago (using outdated mortality)

Usually traditional plan doesn't have cash value, and even so they have. It's very very limited funding will goes into cash value. Therefore, in invested link plan; they intend to invest the money on some place in order to generate more money and that's what create cash value.

For ILP, we are able to choose funds but the recommendation would be to pick fixed income or balanced fund correct? (you would have to choose fund if having ILP). Balanced funds have higher fund management charge than fixed income tho.

Yes you are able to choose fund. But usually just take the balance fund.

Basically i was quoted both on pure investment link [no medical, critical illness, waiver, etc etc] and pure term life. Term life covered until age 80 years old and TPD 65 years old.

No capital needed? I dont get it.

Yeah. No cash value but what i notice is, there is a column of cash value until last 5 years of coverage. The last 5 years cash value in that column suddenly becomes 0. So meaning last 5 years i can withdraw the cash value? Im confuse.

As in investment link, the cash value will gone off after 25th or 26th years. So the premium unable to cover the COI. Hence, at the year 27th onwards, the premium is way damn crazy high.

How do you define by cheaper ?

In cost of insurance ?

In payable premium ?

Oic, some insurance company focus into selling investment link policies so if you compare to their term life insurance and ILP, the price point may be more expensive long term on their term insurance.

No, when it shows 0, it means the policy will not have enough cash value to continue the coverage unless you pay the balance cost of insurance.

That depends on how much premium you’re contributing to build up the cash value portion. Time and time again I have mentioned some insurance agent out there are quoting cheap insurance premium vs another company agent quote in order to get the “business” but gets their insurance policy screwed up with not enough cash value just because they don’t understand the ILP concept.

You don’t get high insurance coverage for low premium without sacrificing something in between.

I mean payable premium as term insurance does not include the Cost of Insurance in the table.

I understand that if im getting Investment Link Product, the 0 shows in Cash Value table means it does not enough to cover the Cost of Insurance. However, that figure shows in Term Insurance quotation which make me curious. And there is figure on the last second fifth year. Only the last fifth year shows 0.

This is usually depends on your age and the premium you pay. You don't expect to pay RM 200 per month at the age of 40 right? Its depending your age and your need, then your agent suppose to quote you accordingly. Which plan are you looking for? I just roughly give you a "suppose" price to sustain till the age you needed.

Term insurance does have the payable premium table on the subsequent years. You may consider that as the cost of insurance.

I will not be able to comment on such thing without looking at the policy entirely to fully understand it.

hi sifus. i heard that all premium (all insurance industry) will increase after 1/7, because Bank Negara wants all insurance to lengthen the sustainability until age 99. which is indirectly will impact on the entry premium. is this true ?

Yes, there will be a lot changes in plan after 1/7 because to sustain until age 99. However, increasing on entry premium its depending usually but logically it will increase too. I only got the news plan will change, but about price changing not very sure.

Sustain until 99 years old, is that means my current medical card Prudential (until 70 years old) will go up to 99 years old? correct me if i think wrongly.

As far as I know, Prudential plan cannot be upgrade one but this new rules mostly implied on new plan and shouldn't affect old plan. However, there's no news yet from any other place besides most of ILP will be withdraw soon.

Premium may increase due to the change in structure, but the insurance company will also balance it by giving out more benefits.

No, unless the insurance company specifically mention that there is a change within their policy agreement to extend your coverage explicitly to 99 years old. Otherwise it's not safe to assume that it's "automatically" changed to 99 years.

Actually right, an ILP is perhaps the most transparent type of Whole Life insurance, compared to traditional policies (what we call savings plans, endowment plans, etc), it is even more transparent than universal life.

I hate to jump the gun, but i think your best bet is still bring the new quotation and run it through with your existing agent.

Maybe it is just me, but I can't help but to suspect somebody is trying to be smart with you, toying with the words "savings" and "investment"

Highly encourage you to run it through with your existing agent

With that said,
On the matter of "investment plan going nowhere" .... I doubt anyone bought an ILP with the intention of riding it as an investment vehicle.
I mean... the objective here is to insure yourself right? That's why you bought an insurance policy, right?

I highly encourage you to run through your objectives again before deciding.
Cuz... your current policy already accepted cover, why would you want to be subjected to underwriting again...if it is the same kind of coverage? <<< For young people, memang can't relate. But for older folks, this is a big deal man.

I believe many sifu-s here can agree on this

This post has been edited by JIUHWEI: May 3 2019, 12:22 AM

Hi, I've applied for ILP Life Insurance with Medical card Plan & Pre-CI as rider respectively.

Insurance company approved my policy, but with exclusion on heart related illness claim for the Pre-CI. For medical card plan, there is no such exclusion i.e. all fully covered. I think quite weird coz ins co only excludes it for Pre-CI but not Medical card.

The reason they exclude is most likely due to some heart check up (due to palpitation) that i done about 2-3 years ago. Everything was okay and no medication needed.

Not too sure if other insurance company also apply the same risk averse. So just want to ask if I try new application with another insurance company, will have the same exclusion? What are the chances not to have exclusion due to the same reason?

This post has been edited by niu_niu: May 3 2019, 10:09 PM