That's the Excelife policy.

What do you need to know about it?
I have the exact same policy for years.

It pays the sum insured + dividends + terminal dividends.

To convert to ETI, you can head up to the servicing branch and fill up the form.
Based on your dividends available, the policy will be reduced to only cover for Life up to x amount of years.

If you were to surrender your policy now, then whatever dividends reflected is what's paid out.

If "now" is before dividends are declared, then you are not entitled to the dividends declared post-surrender.

I particularly liked your post as it hints at a very important differentiator between what's offered online, vs what offered through agency.

What's offered online is very stripped down, bare essentials. Or what we call, Annually Renewable Term Life.
You pay accordingly to your age and sum insured.
That's really all about it.
These are usually sold through corporate agencies such as Fi-Life, previously SunLife or banking institutions.

What's offered by agents, otherwise also known as Life Planners, are more sophisticated products.
Usually requires more discussions and planning, hence the relatively recent introduction of BSC for some extra measures of adherence above and beyond just production.
More "expensive", but it comes with extra features and benefits - hence some planning and discussions needed.

Neither is "better", just whichever fits you best.

No lah, none of it will be kept by the insurer.
The Guaranteed Cash Value will also be paid out.

In the event of a Death Claim, nothing is to be left in the policy, and the policy terminates.

Sorry ah, some correction to be made:

In the event of a surrender, you get Dividends + Guaranteed Cash Value, as shown in the statement you received.

In the event of a death claim, your nominee gets the Sum Insured + Dividends + Terminal Dividends (if any).

Ni confirm betul. I checked back on a recent claim.

Hmm... If you're travelling for work, then by law, your company (or the liaising company bringing you over to their location) needs to provide you with the relevant insurance coverage.
Perhaps you want to have this discussion with your HR first?

If you're the boss, the same applies because you're technically an employee of your own company.

If you're a freelancer hired on contract, then yes, you'll have to take one up on your own.

If just for leisure, then biasalah, have to take one up on your own as well.

No. That portion is guaranteed. Nothing less, but also nothing more.

Yes, this is correct and accurate information. And I believe it is the same across the Life Insurance industry.

Why the underwriters (and myself) are so confident regarding this is because jack2 is looking for just a Life coverage.
The current ILP fund projections are limited to a maximum of 5%. Which both you and I know that capping an equity fund projection at 5%p.a. is really an overly conservative view, especially when we're talking about a long-term horizon in this case.

So yes, if the quotation systems (which is set to abide by BNM guidelines) is able to generate the quotation, then yes, it should sustain to whatever age selected, even with a 2%p.a. projection.


With that said, is there a chance that Malaysians suddenly experience a greater mortality rate than right now? So much so that it disrupts the current demographic statistics to be skewed WAY off? YES! The possibility is always there!
IF and WHEN it happens, of course it will hike the COI, and jack2 will receive a letter notifying him to increase his premiums by X amount.
Even then, it is merely an option or suggestion to cough up more premiums. It is not absolute. Only at that point, sustainability becomes an issue.

What's the problem here?

There are no issues preventing foreigners from purchasing Life Insurance in Malaysia.
I personally have Japanese, British, Turkish, Chinese nationals among my customers.
They work here and their status remain as taxable residents in Malaysia.

With that said, citizens of sanctioned countries in Malaysia cannot buy Life Insurance products here.
Examples: Iran, Syria, Israel
However, it is okay for them to conduct business in Malaysia and purchase general insurance to insure the properties under their business entity.

Just to add, there are many different terms that you can choose from.

There's 5-year term like what lifebalance mentioned, there are also 10, 20, 30-year term life products.
The premiums will be leveled throughout the term.

But in the nature of the relationship between age and COI, a longer term life policy may or may not work to one's benefit.

Would a Life Insurance with investment affiliations with investment firms like Pineridge and BlackRock be of interest to you?

Exclusions on nasal tract and its related conditions.

I also have a very old medical insurance policy from 1990. I still maintain it till today, despite having a new one in 2013 and have been upgrading the new one ever since.

Why leh?
1. I picked up several injuries from then till now.
2. The new one excludes my nasal tract due to Asthma, and also my right shin due to an injury i picked up from Taekwondo tournaments over the years.

New ones may be cheaper from a rate perspective, but for your benefit, it is best to go through your medical history and be thorough.

If the old one is an investment-linked policy, call up the customer service hotline and enquire about an upgrade within the policy too!

Would you want to leave more or less for your remaining spouse and kid(s)?

Happy New Year, everybody!

May we continue to lift each other up into the new year!

1) I figured I should get coverage for medical/CI that last till 99? Do I need to purchase CI/medical/hospitalization separately or they are normally in a package?
Medical coverage generally covers till age 100.
It is available in standalone form, and also as a rider in an ILP product.

On the other hand, most CI products would cover you up till Ages 80 or 85 depending on the product.

2) Should I take term life (i see some max coverage till 80) or investment link policy?
Term Life works great for very specific coverage terms and objectives. But the premiums can add up as we age.

An investment-linked policy will command a relatively higher premium from the get go, but it comes with its own benefits such as flexibility to opt-in for additional riders (CI, HIB, PA, etc).

3) All these premiums will increase year on year? (anyway the one my parents bought, I've been paying the same amount over past 5 years)
For Term Life products, they are designed to be Level-premium throughout a pre-determined coverage term. Annually renewable Term is calculated annually as the name suggests.

The nature of an ILP policy involves certain market risks, as the name suggests as well. This is because it utilizes some funds from your premiums to generate some returns from funds that trades in the open market according to their respective portfolios.
As I mentioned, an ILP arrangement will command a relatively higher premium from the get-go for the purpose mentioned.
Since the market is also unpredictable and returns cannot be guaranteed, there is also the issue of sustainability.
How is the policy going to sustain to age 100, considering the fluctuations in the market? This is what it means by exposure to market risks.

That being said, ILPs are designed to be a Level-premium product. Which means you are supposed to pay a certain premium figure (level) forever, that sustains the coverages that it encompasses.
Whereas standalone medical insurance may appear "cheaper" from the start, but the premiums increases according to age at an exponential scale. It gets pretty scary at later ages when we need it most.

So you see, it is not absolute which is "cheaper" or "better".
It's whatever works for your goals and objectives.

Yes, the Cost of Insurance is not fixed. Thereby in recent years, everybody went through a medical rate hike across the board - ILP and Standalone alike experienced a bump in their premiums.
Bear in mind that the ILP comes with a Life Insurance portion as well. If we were to put it to a head-to-head comparison, we'd have to factor in the premiums for a Level Term Life to age 100 of the same SI in order for a more definitive result.

Our medical inflation has always been high, and that has always been factored into pricing.
What is changing here is a few things:
1. Better value and generous terms of our medical insurance offerings (please check and compare with private medical insurance of other countries)
2. Malaysians living longer, but in most cases living longer with chronic illnesses
3. Improvements in drugs, tech, skills, etc. (Medical machinery are not exactly cheap)
All these cost money. And in the most recent Covid-19 pandemic, some extra costs are also incurred in PPE, sanitization, quarantine floor space, ventilators, etc.
Yes, our health is a human right, just like clean water. We also pay for our water right?

Malaysia has been in the top 3 unhealthiest nation in SEA (or Asia) for some years now.
Its bound to have some effect on our healthcare systems - repricing.
So what are some steps that insurers have taken to help keep costs down?
1. Retro-fitting old tricks: co-insurance and deductibles making a comeback in the new medical insurance plans. This acts as a deterrent for people thinking to abuse the system.
2. Limits. If you are like me, you may remember such a thing called "inner limits" - having a cap on each kind of surgery/treatments.
3. The modern approach - rewarding customers for staying active and leading a healthy lifestyle. As it turns out, it is actually cheaper just to reward customers with cash for maintaining a healthy lifestyle. Examples can be seen in AIA Vitality (which I am actively participating in), as well as initiatives from other insurers.

With all that said, my experience tells me that it always comes down to the wire - price.
Yes, it is cheaper now to buy standalone. And it gives you the illusion of "saving" some money.
And if you, like me, have some objectives for the savings, that money saved is to be spent elsewhere now or at a predetermined time in the future.
Do you also save with the intention of paying the rising standalone medical premiums in the future?
At least with ILP, you can have some form of control on that.
If you're like me, I pay a bit more. Usually put in RM30 more a month at the time of purchase into the investment account.

Yes, I do my other investments into property, some shares, and recently explored into cryptocurrency (macam timing very bad, I feel I bought at a high) as well.
Yes, I do agree ILP is not an investment vehicle.
Then why pay more? Because I don't intend to be bothered by trivial things such as a rate hike.
Not because I am rich, but because I am also not bothered with material things such as gadgets, the latest car, and have no ambition on instagram.
I also still make my own coffee and tea, and my wife made me egg sandwich for breakfast this morning.



If you are really curious: https://www.instagram.com/jiuhwei/?hl=en

This post has been edited by JIUHWEI: Jan 4 2022, 11:18 AM

Yes, you pointed out a crucial point - "One is prepared to pay an increase when he reaches the new age barrier."
If this is within the comfort range for the insured, Life Planners like me is also quite happy to make higher commissions with standalone products.
But, as per our Balance Score Card demands and agency practices, it is our duty to disclose all the information so you are informed.... Which is what many of us are trying very hard to do here. There are no sides, just information.

For variable premiums, quantum of increase is uncertain and can affect affordability of insured if the % increase is high. Some may eventually terminate the policy or reduce coverage to sustain the policy.
Frankly, this threw me off quite a bit. Cuz this is exactly why people would choose ILP.
Are you referring to Life Insurance or Medical Insurance here.
Because the scope of this discussion is largely regarding Medical Insurance coverage, whether to have it as a standalone policy or an ILP. Right?

Regarding "Insurer use the word 'Sustainability' to put 'fear' on the insured to continue the 'INVESTMENT'."
I think in an attempt to be transparent and clear, some choice words got lost in translation.
The word "INVESTMENT" in ILP is to make known to the general public that there are elements of market risks built into the product.
And in the nature of investment activities, nobody can guarantee its returns. I believe we can all agree on this.
And in the nature of expected returns, lower returns does in turn affect the ILP's sustainability (because there's COI that needs to be paid).
In addition, medical rate hikes also affect the ILP's sustainability (sebab more COI to be paid).

Then let's talk about the money saved on the "difference" in premium between an ILP vs a Standalone medical policy.
For the sake of argument, I believe the money will be INVESTED right?
And wouldn't that expose the individual to HIGHER RISKS? Of course, with a higher expected return/loss.
With the higher risks, wouldn't that put MORE FEAR into the individual?
At the very least, there is a risk profile questionnaire with every ILP purchase, and the funds will be selected according to said risk profile to ensure suitability.

Don't you think this makes better sense?

I'm not saying you're wrong, I'm just pointing out some dissonance I found in your line of thought.

Hi guys,

I was met with a pretty strange situation:

A gym operator engaged me for their new outlet's insurance needs. There is also a specific requirement by the property management, which is for him to provide a Public Liability coverage in his outlet with a minimum of RM5mil. Yes, pretty high, I know. (TA already signed and stamped)
So he went to the property management to discuss on reducing the Public Liability coverage to RM2mil. The property management then instructed him to have a "qualified person" to certify that a Public Liability of RM2mil is sufficient.

With my limited experience, I'd like to seek wisdom in this situation.