Geese, just realised I did receive this letter last year....

Just when I think the time has come for me to have a higher changes of claiming it, .....that coverage was terminated.

Ha ha....
The other parts of my policy is still active, just this item

So,
Just remember to review the details in your policy periodically especially when nearing 60.




This post has been edited by MUM: Jan 25 2024, 07:26 PM


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Big boss dah tua....

Wah boss, you nearing 60 edi. Hope you continue to have good health

any truth to this?

https://gschqckhtpkidzxz.global.ssl.fastly....-rm-237-billion

Yes this is true, and it is widely known in the industry.

The thing is, the Participating Funds are broken into 2 - Estate and Asset Share.

Asset Share = share of ownership by Par policyholders.

Estate = "unknown" money floating around in the Par Fund for which the beneficial owners cannot be traced back.

Where the whistleblower is wrong is that, the Estate funds do not actually impact the current Par policyholders. They were not shortchanged. For current Par policyholders, their benefits/returns etc come from the Asset Share portion of the Par fund, where everything is accounted for fairly and in accordance with the 90:10 rule.

Over the years, Great Eastern may have had an estate that had ballooned up. You cannot distribute it to current Par policyholders because it's going to be unfair gain for the policyholders. Maybe this is an agreement they reached with the government to trim down the Estate, for which they have zero ownership over.

TLDR: Although there is some political element here, it cannot be denied that Great Eastern, Government of Malaysia, and B40 rakyat all mutually benefitted at the expense of "unknown" money that has been floating around for decades.

Link to policy document: https://www.bnm.gov.my/documents/20124/9481...mt-July2023.pdf



This post has been edited by contestchris: Jan 27 2024, 10:41 AM

Something about BNM force foreign insurance companies to sell like 30-40% of their share to local GLC. So to avoid that, GE put money into a fund supposedly for B40 mysalam. Whether the money actually reach B40 is another question. That said that exercise exempted GE from selling their shares.

In case you are wondering yes you can buy Great Eastern shares. It's a publicly listed company in Singapore.I know some Singaporean have like 6 figure SGD inside Great Eastern. Alternatively buy OCBC. They hold I think 90% of GE.

Turn that cash register around baby. Use dividend from them to pay your premium. Essentially getting free insurance from GE. 😁

Fi Life’s insurance are actually issued by Generali

Here again the question which might been asked before, do all the insurance companies practise increase of premium due to inflation and more importantly is there a company that has the least increase in the past. This is for ILP medical policy.

This post has been edited by gedebe: Jan 27 2024, 11:13 PM

Yes, everyone does it. Because everyone need to make money.

As to who increase the least, you probably wont get the answer. Unless you are the one at bank negara approving the medical insurance price increase.

Pre covid, what i do know is, co-insurance does help control claims hence insurance companies do reprice them less.

I have said this many times, post covid, the claims have been just horrible. Coupled with the post covid inflation. Things are just expensive.

What worked in the past may not work in future.

However, bank negara does have initiative to encourage/force insurance company to not offer medical plans without deductible/co insurance via new guideline. Minimum intended by BNM is RM500 or 5%. Something like that.

I guess for now BNM also think this may help. But long term... who knows?

ILP have baggage of poor performing fund. So if fund not performing, you are force to increase premium some more. It's double whammy instead of just one thing you need to deal with (medical inflation)

I've just learned that for medical insurance, there is this premium increase due to age group ie, my father in law who happened to become 67Y0 suddenly has his premium increase from rm6589 - 6994 because of older age and because of inflation another increase again to rm7694, refer pdf


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Normal. Cause as age increase higher chance that you will claim. So insurance want to cover themselves also.

can we list down which factors can make the premium of ILP medical insurance increase:
1. inflation
2. age group, the older you are, the higher the price increase
3. too many people claim
4. investment has poor return,
5. please add

This post has been edited by gedebe: Jan 28 2024, 12:36 AM

Mind you, #2 is already known upfront and priced in accordingly. It's not a factor in ILP premiums increasing.

#1 is also priced in to a large part.

The issue is with #3 which causes COI to rise (and consequently premiums to rise).

#4 is a separate issue which doesn't cause COI to rise, but it causes the premiums to rise.

There is another reason that causes the death spiral of a medical plan. I shared the diagram before. When healthy people exit to a cheaper plan or a plan with more benefits, and those that remain are disproportionately unhealthy.

It does seem that at least to me, i am at the receiving end of the insurance companies when come to premium increase, they have a list of reasons which are even acceptable/agreeable to other paying customers.
Am I the only complaining?

Lots of people complain. You can see it on Reddit or lowyat. You can't do anything about it.

That's why I always say plan for it. Majority of people cannot afford insurance at age of 60 above when you need it the most. So they just surrender policy or let it lapse.

This post has been edited by Ramjade: Jan 28 2024, 01:09 AM

it does seem to defeat the purpose of having insurance even though you think you have prepared yourself by buying it at an early age.
And I've yet to start talking on agents, some claim that ILP insurance can last till 100 YO!

This post has been edited by gedebe: Jan 28 2024, 01:23 AM

Yes. It's true. If you are willing to pay. If you look at the brochure and plan, all stare coverage until 99 years old. Question is are you willing to pay RM20k/+year for insurance? Sometimes can also be RM30k.

Another reason I can think premium going up is our weak ringgit. A weak ringgit will increase inflation as we import everything despite what govt said.

This post has been edited by Ramjade: Jan 28 2024, 01:51 AM

There are enough consumer complaining that there was a slight slow down in repricing during 2020. I think BNM ask to slow down / halt then. Especially when alot of ppl having their job affected, etc...

But 2022 onwards back to normal... but i was reading about BNM blueprint 2022-2026, medical insurance is one of the key issues highlighted related to insurance industry.

Yes BNM is looking into medical repricing as a serious issue, together with LIAM/PIAM/MTA.

One of the key things will be the upcoming industry-wide shared medical database to get insights across the industry on medical claims.