Thinking of getting a medical card for my mom. Her age is 50+. Was quoted for an ILP plan (with bare minimum life/TPD benefit) which costs around RM 400/month. The COI is lower than premiums of standalone plans (I have compared up to the age of 80) out there and benefits are also much better.

However, due to the nature of ILP, this would mean initial high costs. Being just 20+ now, obviously I do not want to commit so much because I have other commitments (car loans, PTPTN etc) as well. My mom, due to some previous mistakes, has almost no savings today.(which is another story but irrelevant here)

I have since thought of a brilliant idea. In ILP as long as we have sufficient units (account value) inside, the policy will not lapse. So, I can twist around and only pay for the bare minimum of ILP plan required to sustain the policy, which is the Basic Life COI+ Rider COI+Fund Management Fee+Direct Distribution Costs. In other words my accumulated cash value/surrender value will be almost zero every month. By doing this I can reduce the premium by RM 150/month.

Yes I know I will pay more in future but I can have better cash flow instead of throwing all into insurance.

Any possibility of going wrong with this method? Would my agent commission be affected and gets pissed off and don't want to serve me? (I didn't actually told my agent frankly about this, because I afraid he will gets pissed off.)

But standalone cost more even taking into account for life+fund mgmt fee+direct distribution costs. The difference continues up to age of 80. So from my point of view not worth to buy standalone. This is why I still want to purchase this ILP but to twist it and make the premium lower (make it like standalone). But I wonder this method has any flaws in it.

I see. Will try to check that out. Thanks.

Yes for 1st 2 yrs, because only 40% of the 1st RM 100 of monthly premium is allocated, so I know the cash value will be lower. I have already take into account of that issue, still it would be around RM 150 cheaper.

Well, but standalone cost more even taking into account for life+fund mgmt fee+direct distribution costs. The difference continues up to age of 80. So from my point of view not worth to buy standalone. This is why I still want to purchase this ILP but to twist it and make the premium lower (make it like standalone).

Fund management fee I already take into account by inflating around 5% which is well over the fund management fee stated in the sales illustration. For the sales charges, thanks for reminding me. I will check it out. But shouldn't be too much as Unit Trust out there charges also like 5%. Which would be like an additional of RM 10? I guess?