Many agents have been misrepresenting that ILPs have a “fixed premium” feature without full or honest disclosure or chose to gloss over the fact that very few ILPs has met the high projected returns. See point #1 and #2.

I am glad that most professional agents here are willing to concede that there is no “fixed premium” when returns are projected (previously at an unrealistic level until BNM intervened in 2019 to a much lower 2% and 5%).  It is a bad sign that the regulator had to step in.

#1: Your Premium is Fixed But Not Your Insurance Charges.
‘Huh …, what does it mean?’



For most ILP policyholders, they know that their premiums, let us say RM 150 a month, are fixed. But, not many of them know that their actual insurance costs are not fixed and will be increased as you age over time.



For instance, you may buy yourself an ILP when you are in your 20s. Your actual insurance cost is low. Thus, a larger proportion of your premiums would be first allocated into your unit trust funds. Hopefully, they grow in investment value in the future.



30 years later, you are now in your 50s. Your actual insurance cost has gone up, exceeding your ‘fixed ILP premiums’. How do you cover the shortfall? Simple, it will be taken from the current investment value of your unit trust funds. Hence, despite a rise in actual insurance cost, you’ll somehow maintain the amount of your fixed ILP premiums.




#2: What if My Unit Trust Funds have been Fully Exhausted?
Is it possible for that to happen?

Yes. It could be due to poor investment results from your unit trust funds. Or, it could be due to substantial hikes in actual insurance costs which wipe out all of the investment value in your unit trust funds.



Will my ILP be terminated by my life insurer if it happens?

In most cases, life insurers will demand a top-up in premium from policyholders like yourself. If you agree to make extra payments for it, then, all is well. The ILP will continue to be in-force. Otherwise, your ILP will be terminated.

Just to add,

The unit trust in the ILP is not guaranteed to be profitable, and may result in losses instead of gain.

There are poor performance unit trust out there as well. One can read those unit trust performance via the fund fact sheet, to see their annualised return, some even perform poorer than FD.

Even the projection given, aka lower or upper range, it doesn't mean it won't perform below the lower range and vice versa, it may perform way above the upper range as well, which all depended on investment performance of the unit trust.
In layman term, the performance is never guaranteed to be profitable nor how much as well, while it may result in losses if investment condition is not favourable.

ILP = Insurance + Unit trust (a combo product).

The unit trust investment portion is the one compensate the rise on COI, in order for the premium to stay as original, until it is exhausted.

Insurance charges or COI never fix.

Thanks
The new rider will be still ilp or standalone? Is this a better option comparing to getting a new plan?

I am also looking for another 2 medical cards for wife n kid.

Currently all of us are under co group coverage rm30k per issue. So most prob get a deductible type as suggested by lifebalance

RHB Insurance MediSure Supreme

any RHB medical insurance agent here that able to offer reasonable and responsive service for outstation client that sign up under their hand ?

RHB Insurance MediSure Supreme

any RHB medical insurance agent here that able to offer reasonable and responsive service for outstation client that sign up under their hand ?

or is this a agent-free product ?? 

when you mean outstation not overseas right? cause there's those t&c you need to worry about. you may not get coverage if you are long term overseas

i suggest drop your contact at rhb website, if they still have rhb insurance specific website. got business, should have ppl call you.

RHB Insurance MediSure Supreme

any RHB medical insurance agent here that able to offer reasonable and responsive service for outstation client that sign up under their hand ?

or is this a agent-free product ?? 

yup , i mean local, ie agent from KL and I am from Penang
coz mostly we tend to buy insurance from agent in same neighbourhood or people you know, easier to pass form to them for claim purpose.

so i was loitering around my Great Eastern E-Connect and stumbled upon this "Investment Value" from one of my Investment-Linked Policies.

so theoretically la, if I were to surrender my insurance today, I will get this amount (RM5,818.91) refunded to me isit?

because I saw my one other policy that uses the title, "Surrender Value" instead which was very clear. This "Investment Value", I not too sure what it means.

Anyone willing to share own experience what is the critical things I should take into consideration before i switch from mainstream AIA to this niche rhb , apart from the guarantee renewal .

I certainly  lack of the knowledge to interpret the wording as pro as the agent , in fact the renewal question that I was asking was still remain open questions. Perhaps only thru direct dealing with respective Live AGENT only I can get answer ..

Thanks Cyclops and lifebalance , will certainly print out the tnc and digest

That’s the amount you will get if you surrender the policy today. However that amount is not final as the unit price will change over the day so it will be updated on the unit price in the policy cancellation receipt

Hi all sifu
My mum bought Great Eastern Takaful Supreme I last year with RM50,000 yearly contribution, and today suddenly her back account auto debit and she was shocked. My mum having misunderstanding with the agent who sold her last year.
My mum was 62 years old last year, premium due date tomorrow, auto debit RM50k today. Then i just knew this matter and look into the insurance policy.
I found that it's something like 1st year RM50,000, death benefit RM43,000
Surrender value is only RM22,000++, it's really ridiculous.
Anyway, i wish to settle on this matter, due my mum thought only one time investment of RM50,000 and get 15% cash payout guarantee.
What solution i have currently, reduce the yearly contribution to lowest amount (RM6k / year) and surrender it after few years? or any other option
Sorry i'm having basic knowledge about insurance only, not really know deep about it, seeking for sifus advice

huh 50K/year just to get 43K death benefit?

Something very strange...even at 62 years old buying life insurance + medical card also wont be until 50K/year.

Hi all sifu
My mum bought Great Eastern Takaful Supreme I last year with RM50,000 yearly contribution, and today suddenly her bank account auto debit another RM50k and she was shocked. My mum having misunderstanding with the agent who sold her last year.
My mum was 62 years old last year, premium due date tomorrow, auto debit RM50k today. Then i just knew this matter and look into the insurance policy.
I found that it's something like 1st year RM50,000, death benefit RM43,000
Surrender value is only RM22,000++, it's really ridiculous.
Anyway, i wish to settle on this matter, due my mum thought only one time investment of RM50,000 and get 15% cash payout guarantee.
What solution i have currently, reduce the yearly contribution to lowest amount (RM6k / year) and surrender it after few years? or any other option
Sorry i'm having basic knowledge about insurance only, not really know deep about it, seeking for sifus advice

Edit add on: My mum opened ocbc 360 account i trying to get some interest from her liquid fund, and i think the bank officer aim my mum and talking sweet things to my mum that my mum definitely no idea she is buying a "insurance". The serving agent consider to scam and trap my mum for purchasing RM50k yearly contribution policy, to cover RM43k death benefit? I'm really sick about it, all the monies are my mum retirement fund. Hope i get some solution or what is the best way to do to save the monies. Appreciate

sharing experience from someone paying for my parent's medical insurance also.

i'm feeling the pain of paying age 66 medical standalone. if you can locate cheaper insurance with some deductible amount of around 5k, this will save you some money down the road. this is assuming you can fork out 5k for medical fees to the hospital on your own. i am willing to do that to save some money from paying insurance.

cause my mum very healthy.

i feel like i'm paying too much to AIA now... but mum too old to switch. sigh sigh.

Hi Sifu

Just got a quote from Allianz for policy below:

CI        300K
Life      100K
PA        100K
R & B    200
Medical  1.5m(Annual limit) Lifetime limit unlimited.
waiver of premium

Age 26, M, non-smoker, Class 1.

Premium is RM350 /month, coverage period 31 years.

1. Should i increase my premium to extend the coverage period?

2. Any area i can improve?

3. For Rm350/month can i get much better coverage from other insurance company?

Background: single, no debt, annual income around 70k-90k.

Hi all sifu
My mum bought Great Eastern Takaful Supreme I last year with RM50,000 yearly contribution, and today suddenly her bank account auto debit another RM50k and she was shocked. My mum having misunderstanding with the agent who sold her last year.
My mum was 62 years old last year, premium due date tomorrow, auto debit RM50k today. Then i just knew this matter and look into the insurance policy.
I found that it's something like 1st year RM50,000, death benefit RM43,000
Surrender value is only RM22,000++, it's really ridiculous.
Anyway, i wish to settle on this matter, due my mum thought only one time investment of RM50,000 and get 15% cash payout guarantee.
What solution i have currently, reduce the yearly contribution to lowest amount (RM6k / year) and surrender it after few years? or any other option
Sorry i'm having basic knowledge about insurance only, not really know deep about it, seeking for sifus advice

Edit add on: My mum opened ocbc 360 account i trying to get some interest from her liquid fund, and i think the bank officer aim my mum and talking sweet things to my mum that my mum definitely no idea she is buying a "insurance". The serving agent consider to scam and trap my mum for purchasing RM50k yearly contribution policy, to cover RM43k death benefit? I'm really sick about it, all the monies are my mum retirement fund. Hope i get some solution or what is the best way to do to save the monies. Appreciate

Yes, it's really strange. The product call Great Eastern Takaful Supreme I , my mum bought it at OCBC branch
I just knew it few hours ago and panic now 

Trying to look into the policy but i don't had 100% understanding.
I saw something like 35% is management fee & others
65% is for investment , then the surrender value is only RM22,000 something for first year (RM50k paid at the first year)
surrender value at 2nd year is RM53,000 (RM100k contribution total paid and had been auto debited today)