Take this as another point to consider..... How are your CI charges paid?

Is it a rider attached to investment linked product or a stand alone CI policy/traditional policy?

It it's a ILP rider, the charges goes higher per your age whereas a standalone CI/traditional policy will have level premium ( the same irrespective of age). A traditional policy most probably will have some Surrender Value.

After retirement if you do not have income (passive or what-not) you can gauge if you can still afford the premium.

Crucial in the equation would be your family history too... if any member have suffered from it and are you likely to suffer from it in advancing age.

Though medical card will take care of the H&S cost; is your savings/passive income enough for follow thru (additional) expenses ?

Not necessarily.

If you outlive the term policy there is nothing to leave behind

In the long run, as how you should see insurance products, term life may not necessarily the cheapest or lowest cost.

The onus has shifted from the insurer to the insured under ILP to manage the investment/returns. And on another hand (probably the positive side) is that the cost of insuring (insurance charges) are low compared to a traditional policy, where the onus for yearly bonus/dividend is with the insurance company.

Those who have been in the industry long, would still remember well the traditional policies, some which pay good returns (declared bonus/dividend) which are guaranteed; but the premiums are more expensive for the same sum assured (compared to ILP)

With the introduction in ILP, traditional policies were slowly taken off the market, but if you do your homework you may find some traditional policies still available (which may/may not give good returns as previously).

This post has been edited by Cyclopes: Mar 16 2023, 10:25 AM

I stand corrected. I was referring to insurance charges only. Initial insurance charges are low and affordable for large sum assured, but the charges increases as you age. Excluding other charges like monthly charges and fund charges.

As they say, no matter how you call/name a rose, it smells just the same.

In a regulated industry, need to conform to standards/ guidelines as set by the regulator.

Probably you have yet to meet an agent/life planner/wealth planner who is able to give/share with you the benefits of ILP from your perspective. Each product, be it ILP or not, has its strength/good points.

Again, as the saying goes, there are more than one way to skin the cat; same goes for ILP.

Enjoy a blessed week ahead.

p.s. Maybe we are more kiasu than Singaporeans in sharing the information you mentioned earlier.🤣🤣🤣🤣

This post has been edited by Cyclopes: Mar 20 2023, 07:51 AM

All the charges/cost for riders (including waiver) and basic plan are very transparent in the sales illustration, unless glossed over during presentation, not easily missed.

Unlike standalone, premium for ILP can be adjusted (lower/higher to accommodate affordability) for the same coverage/benefits. The only caveat is that if the premium if set too low may not sustain for longer duration and require top up.

Rising healthcare cost is inevitable. Premiums, both standalone & investment linked riders will be adjusted to accommodate such increase.

Hence you will note that there is a clause that states that the premiums are not guaranteed and will be given 3 months notice before increase. And over the next period of 20 years its hard to say how many more increase will there be.

We are now more prone to visit private hospitals then government hospital for treatment.

A general reading of your above statements gives impression that you are comparing the ILP total annual premium (of RM 7.6K yearly)against the standalone which increases yearly ("..as compared with the Standalone Medical card whose yearly premium is very high as the age goes up.)

The ILP premium appears constant compared to the ever increasing standalone plan. Read thru the Cost of Insurance column of the ILP, and you will notice that the medical card rider increases with age too.

Hope I read your thoughts correctly and you are better guided to make a decision.

A increase in Cost of Insurance is more a result of rising claims & higher cost of medical care.

Subsequent increase/re-pricing of medical cost may result an increase in premium, if the original premium was set too low and account value balance is not sufficient till end of the sustainability period.



This post has been edited by Cyclopes: Mar 25 2023, 05:55 AM

Yes, where the CI plan provides comprehensive coverage for multiple stages (Early/ Intermediate/ Advance) of a critical illness & that covers multi category of critical illness (eg. Cancer/Stroke) you can claim under each stage or category. So, in short, its possible to be more than 100% of sum assured.

Under new BNM guidelines, its incumbent of the insurance company to advice you of the sustainability of each policy. You will likely receive similar letters on your policy anniversary in subsequent years.

A pre-lapse notification will also be issued when applicable.

Do make an effort to check on your sustainability occasionally, so if you missed a notification you are not caught off-guard.

This post has been edited by Cyclopes: Apr 5 2023, 09:07 PM

Expense not necessarily a loss, tax deductible & good incentive to motivate and retain staffs.

Depending on the company, some subscribe for the minimal plan or just for employees only for hospitalisation plan.

Very likely you were sold a new plan. If it's an "upgrade" offered by the insurance company, there is no need for a so called transition period.

Kindly do update if I am wrong 😔

To get back your money from the old plan, you need to terminate it.

The premium is also significantly less than RM1 per day. The sum assured is small by present day needs.

How long since purchase the policy & what's it's current cash value are among the questions you ask before deciding to keep/surrender the policy.

Benefits of such policy are seen only in the long term, as the bonus accumulates.

Affordability.

You pay separate COI for the extender. Not all will want to add the additional rider.

Withdrawing of declared bonuses will not terminate a policy. Policy will be inforce so long premiums are paid.

On maturity at age 70, you will receive account value in both Basic Investment Account & Wealth Account.

You have options to make partial withdrawal & take a Premium holiday. But by doing so you may not receive full benefits of the Wealth plan (except those specifically allowed in the plan).

Yes, consult him/her to ensure you fully aware of the full benefits.

The reduced paid up option is dependent on the cash value too.

If cash value is low/insufficient till end of the policy term, reduced paid up option may not be applied. You can call the customer service for clarification if the reply from the agent is not satisfactory to you.

Generally most life insurance doesn't have surrender value till Year 3. 50% on 1st year will be an exception.

Just an option.

If you still have the policy book, check who is the agent or agency that sold the policy. If the agent is not servicing/resigned, probably can approach/ make appointment with the Agency Manager. Sitting down with the agent/agency manager, you might get a clearer picture than just over the phone. Might give you some insight before proceeding with further action.