First we gta establish that there is cost of insurance (COI) involved and we gta keep in mind that the COI doesn't stay stagnant. It increases with age, for the sole reason that the risk factor increases as we age. This applies to every personal insurance product except for PA (yes, I am aware that insurers are trying their best to continue to either accept applicants past age 70 or allow to renew past age 70).

The waiver of premium is a great product, I would suggest it to all my customers who opt for the ILP structure.

Possible to not follow the suggested premium? Yes, ILP is a plan where the consumer has the most control. Well, you can't control the COI, but you can have control over how much you pay, how long you want the policy to sustain, and withdraw the fund values as you please.
Of course there are minimums that the insurance company can suggest for you to maintain. Even so, you can choose to ignore it as well, bearing the consequences lah.
You can even opt to pay the future premiums in advance.

That being said, here's my two cents lah:
I save and invest with objectives in mind. Education lah, house lah, car lah, fam vacays lah, etc.
Among my objectives, none of it includes "hopefully I have enough to pay the COI in the future".
None of my objectives involves anything that doesn't revolve around fun and my desires. I believe this is the same for a lot of people.
So for my ILP policies, I front-load it. Especially for my kid. I much prefer small tickets over the years, as opposed to constantly have to worry about something as trivial as the premiums and COI. Yes, the medical COI will rise, this is how I prepare for it.
Maybe it vibes with you, maybe it doesn't.
I am a second gen in the insurance business, my (father's) data tells me enough to shape my outlook and directions.
So I can spend my nights planning weekends, family dinners, gardening stuff, etc.

With that, I would like to again point out that that doesn't mean the ILP policies are gna solve all my problems.
Front-loading it takes my mind off having to worry about COI increases.
Then I have other concerns just like everybody here too. Hence I also have my own investments into other businesses, rent-seeking properties, dividend stocks, my self development, etc.
Got tenant problems or not? Memang ada
Got failed in side business? Memang, totally lost everything that I put into it. Learned very expensive lesson.


Am I ignorant about greater returns elsewhere?
Maybe I am, because as you can see, I am a rather risk-averse person from my past.
Perhaps you have your own experiences, and that's personal to you.
So then just get an insurance plan in the way that works for you, that you agree with.

Is the insurance company gna make some money from you? Semestinya. Without a doubt.

Come the question of insurance company fund performances vs investing on your own...
Insurance company funds cannot invest as they like or take chances like retail investors.
Even the equity funds are bound by clearly defined parameters, and meticulously followed.
But if all that is not for you, then its not for you, buy term and standalone plans and products.
Nobody is stopping you from investing on your own.

And if budget is an issue, let's work with the budget rather than forcing something through just because it "sounds better".
No such thing as better or worse.
If it fits, it fits. If it doesn't, then everybody also susah.
What's the point then?

This post has been edited by JIUHWEI: Oct 10 2025, 11:51 AM

I'm just curious, did you ask this to your agent?

Could it be that you allow so little disclosure to your agent, that he/she doesn't know what else to do with you...

Do you have your AIA+ app?
You should be able to trace all the policies registered with your NRIC.

Kalau betul xde, maybe someone trying to use your card to pay their premiums.
Tukar new card je lah.

I attempt to shed some light ya.
ILP is designed to be a Leveled-Premium Product. What this means is that the premium is averaged out to the point that the annual premiums remain the same year on year. Why it is so important to distinguish it in such a way?
It is because the premium is not, never was, and will never be claimed to be fixed.

Why they cannot fix now leh?
Because the premiums will be very high. You also won't buy.
At the current, every repricing also create a wave of discussion demonizing the whole insurance industry liao.
Give you the option to fix the premiums into the far future... We don't want to deal with daily disturbance in the force neh.
As for the Life Planners like myself, lagi worse. Whole world want to check my pocket see how much I earn, count every cent I have on behalf of LHDN. (Really no need, I already kena audit few times)

So now that claims are going through the roof (and newfound roofs year on year), nobody happy liao.
As educated members of society, let's take a deep dive into the crux of the problem, the devil always in the details - the numbers.
Other company I don't know, so won't comment much.
In 2024, AIA Malaysia paid out RM 5.75b in claims.
Of that, RM 4.75b is paid to hospitals & clinics in the form of medical bills & charges. The deductibles, items that are not covered, tak kira sebab tak bayar.
Among the top 10 diagnosis, the average inpatient payout ranges between 6,000 to 51,000 per claim.
Total average per claim is 11,000.
Among the top 10 categories of diagnosis - standing at #2 is General Conditions with an average payout of RM 8,000; standing at #8 is General Infections with an average payout of RM 7,000.

Now, we cannot say for sure that these are abuses or fraudulent claims. Because we are not doctors.
Even if you ARE a doctor, you're most probably not the attending physician to these cases, kan?
As educated members of society, we want to look at other ways to make the system efficient and optimized for everybody's benefit.
So the first move was to introduce deductibles as a means of lowering the premiums.
And the market reacted as it should. And a friendly deductible of RM 300 or RM 500 has proven to be acceptable to the market.
Hence the SMART Option arrived.

Crash Course on SMART Option: https://www.aia.com.my/en/help-support/clai...rt-journey.html

TL;DR version:
Why pay RM 500 deductible when the problem could easily be handled at the GP for RM 100 - RM 200?
Follow the SMART Journey, enjoy lower premiums.
Don't follow the SMART Journey, then let's shoulder the burden together.

As it is, the medical portfolio is currently running at a loss to insurers.
Yet, the gomen interfered to soften the blow to the rakyat.
As a commitment to continue as partners in nationbuilding, all members of LIAM agreed.
It doesn't mean that the insurers are out to get you.
Just like how the police force is not created to make our lives even harder.

I strongly believe that regular review and openly sharing with your Life Planners is the way to cultivate that symbiotic relationship.
Personally, I train my agents the same way - we will only grow when our customers grow.
They don't benefit from our advise, we won't benefit in the long term.

I... macam opened a can of worms...
Sorry guys.
Lemme just attempt to close it ya.

On Regular Premiums


On Premium Revisions


On Cost of Insurance


On Automatic Extension Feature (this one I don't know if it is standard across industry, please check your non-AIA policy contracts)


These are taken from the latest version of a contract specimen document.
I hope these definitions can help clear the air of confusion between differing opinions and hearsay.

As for some of the forumers who had bad experience dealing with agents in the past, I promise you that BNM, LIAM and insurers have moved WAY past that in terms of training, monitoring, random mystery caller surveys, etc. The industry is pushing really hard internally to remove the bad apples (with tangible evidence) from the system by way of enforcing quality business and sustainable business.

And for everyone else, let's not discount other people's experiences maybe.?
After all, our worldview is shaped exactly by the experiences that are only unique to us.
So maybe we can just be objective, just handle the points of discussion so that the silent readers betul2 dapat benefit.
So that this great topic thread can be known as betul2 bernas like the other topics too.

Again, there are products and plans to suit every socioeconomic segment of society.
None are necessarily better or worse than the others.
The best plan is one that is in force.
A good start to buying financial products is exactly how we buy pants - we identify the purpose then measure and find the right fit.
Lepas beli some will gain weight, some will lose weight. Then we adjust as needed lo. Buy belt ke, insert spandex ke (from personal experience)

Okay bro I bagi cara ya:

You request for the agent to first show you the repricing correspondence letter.
There should be a suggested premium amount there or what is the new premium that will be charged.
The insurer has to notify you 3 months in advance before actually charging you the new COI or premiums.

Then you can also request for a Sustainability Quotation.
Yes, want to change the premiums to increase the sustainability of the policy.
How much to increase to what age?
Gather the information first, then you decide.

Yes.

So there is 1) the premium and 2) the COI.

The insurer cannot force your hand on the premium.
But the insurer must notify you on the changes in COI before they charge you.

Keyword: notify

Refusing to do anything to the premium, does not mean the insurer cannot charge you the revised COI rates.
The policy will then be subject to a lower sustainability.

I'm just showing you how it works ya.

On the flip side, even if the insurer increases your premium without consulting with you, you still retain the right to move it back to the original premium via writing in.

Hmmm...afaik, Insurance companies' investment arms are among the most regulated lah.
No doubt there has been some years that surprised even me, but over the long term, it sticks quite closely to what's projected.
As it is, it is already uncommon for anyone to agree to pay above the minimum quotation for ILP policies with medical riders.
With COI hiking at the current rate now, the ones most affected are the customers who absolutely pushed for the lowest of low premiums for the highest of high coverages.
At the time of purchase, perhaps even patted themselves on their backs for their skill at kicking the can down the road.
Insurance is a numbers product. How far can numbers run?

Regarding fund performance
If you find that the investment portion is performing abnormally bad, perhaps consider fund switching before you withdraw from the policy entirely?
Again, please remember that you are buying insurance products for the coverage.
Because it is not an investment vehicle and it shouldn't be seen as such.

Straight answer - No.

Short payment is akin to no payment for standalone medical policies.
Insurance company will hold the 1000 until the grace period expires, return the 1000 to you after.

No matter how you pay for it, system will show short payment unless the full amount is collected.

ILP charges the COI to the Fund Value.

So long you maintain sufficient Fund Value for the COI to be charged, then okay.

The process goes like this:

1. attempt to charge for premium >>> fail
2. System reflect premium not paid.
3. You manual pay RM 1,000
4. This RM 1,000 will not reflect as premium, but rather an ad-hoc top up.
5. Ad-hoc top up works this way >>> 5% charged as fees, 95% goes to buy units that shows up as your Fund Value.
6. The COI then is charged to your policy, and it is paid by selling the units.
7. Policy status will reflect as Premium Holiday

This post has been edited by JIUHWEI: Oct 30 2025, 08:14 PM

I'm not in the position to tell other people how to run their business, their agency la.
But I have been cultivating this in my agency.
Things that I cannot do, then I don't do.
Things that I can do, so I focus and do loh.

Yea, regarding sustainability.
Again, ILP is designed as a Level-Premium product. Since COI increase, company have no choice but to first inform you.
Then they either charge you more premium at each billing cycle, or charge you the same but more frequently.
And at most they can charge to you the bare minimum to maintain the chosen sustainability that was chosen when you first bought the policy, while adhering to the maximum 5% projected return set by BNM.

I know it is your money. That part is clear.
It is also your policy contract to give you the coverage that you need.
And in the policy contract, it involves 3 parties - you the customer, the insurer, and the intermediary (someone like me).
Each party have a role to play.
So we each play our roles well for the symbiotic relationship to work.
The insurer requires the intermediary to go through the due diligence and for the qualified customers to be a long term parters;
the intermediary requires both the customers and the insurer to pull through on their respective ends,
and the customer requires the insurer to honor the contract terms and the intermediary to carry out the professional services.

Let's look at the issues at hand and discuss them objectively.
You have your respective careers and you are part of the economy, just like me, just like everyone else here.
We frankly need each other to play our respective roles and to play it well.
Then whatever PMX say on stage, all the sama2 this sama2 that... doesn't sound like a pipe dream.
So let's be objective.

I just think it's really cool that contestchris did a fact check and owned it so publicly.
And koja6049 being so graceful about it at the end too.
Takes big men with big hearts to do that

This post has been edited by JIUHWEI: Oct 31 2025, 12:18 PM

While you're pending more input on what to do with the policy,

The first thing to do now is to check if the policy is assigned to the bank.
If yes, go to the bank and to terminate the assignment, then update your nominee details.

So there is Conditional Assignment and Absolute Assignment
Absolute assignments allow for the complete transfer of rights of the insurance policy to a person nominated by the policy owner (the assignee). However, with an absolute assignment, the policy owner loses all rights and financial interest in the life policy, and should he decide to revoke the absolute assignment, i.e. decide to assign the policy another person, the assignee must give written consent for this to take place.

With a conditional assignment, the rights to the insurance policy is transferred to the assignee, however, the assignment will also stipulate that upon a particular event that is not something that can be caused to happen by the policy owner, the assignment can be suspended or revoked in whole or in part.

But if you intend for someone or an entity other than your spouse and children to receive the proceeds as the rightful beneficiary, maybe consider a Takaful Certificate?
Why leh?
Under Takaful Certificates, you can choose to nominate somebody as a Wasi (usually spouse or kids lah) or as a conditional Hibah (Gift).
Conditional Hibah nominees receive the payment as the rightful beneficiary. It does not form part of the estate of the deceased, and it is not subject to the deceeased's creditors' claims.

*No you don't have to sunat to set up Takaful Certificates.

This post has been edited by JIUHWEI: Nov 4 2025, 06:37 PM

Another good site for leisure reading on the ongoings between the medical field:
https://codeblue.galencentre.org/

Bro, wouldn't your agent or the CS Rep at GE be the best persons to ask?

And both also you have their phone numbers.

Did you know you can change it within your policy too?

I... am a second generation in the insurance agency business.
And I run my own agency trainings.
I'm 14 years in the business already...

If your agents cannot grow with you, then I think maybe you want to look for someone who will?

There is this thing called BSC - Balance Score Card for agents.

Kena complaint, it will affect the score, in turn affecting agent's bonuses and other performance based incentives.

Standalone pun boleh