this is true, but to collectively gather everyone to confront the insurance company, that will probably need social media or something. and someone needs to be the leader to bring the case to them.

1) Yes I know. This is what I found and hopefully is correct. The increment premium after new plan upgrade will subject to again the commission structure deduction (up to 10 years) , with example 1st year they will minus 40% off my first year increment premium (not total premium). I just wonder anyone can tell me .... if example after upgrade new plan,  this 1st year premium,if  i not able to pay, will they go and minus the 40% from my 20k investment portion?

About why not standalone, I already explain previously.

No, they will not deduct the 40% of the "unallocated premiums" from your existing ILP account balances.

If you upgrade to a new medical rider on your existing investment-linked policy, you do not actually need to increase your basic regular premium (for which the increased portion will be re-subjected to lower allocation rates).

Also, there is a "hack" around this:

1. Just do single-premium topups annually (with 95% allocation rate)
2. Opt for regular top-up premiums (with 95% allocation rate)

You're being fleeced. Your new annual premiums are being quoted at a higher amount most likely due to lower projected fund investment return rates. Also, there may be other new policy charges (do check on this)

If it is true or really enforce able by law....
........
.......
These repricing things had been there since many years ago, ...... had been brought up in the medias,  ......had been brought up in the parliament, ......  BNM had also got involved, ...... recently there was even a 2 days public gatherings organised by PAC, .

Has Those "things" brought up to the attention ?

You judge yourself loh

the only thing that was "brought to attention" is insurance shifting the blame to the medical industry, and govt seems want to act on it. But here lies the problem: you put pricing pressure on the doctors, the doctors can just leave the country and practice elsewhere. Our healthcare system will just deteriorate, this will not end well.

i have no time to go thru all the details and am not familiar with insurance terms

today they sent a reminder for the upgrade via email

i just noticed that the lifetime limit is now unlimited- no lifetime limit with 5 mil annual limit.

Maybe this is why the premium hiked rm6k extra  to rm8k per year.

It is also stated that if i accept, no waiting period and medical underwriting. However if i choose to alter the terms, then there will be. Like forcing me to take it
Crazy... 6k extra per year worth it? or just cancel and risk it

The part that really pisses me off and makes my blood boil  about your situation is that they are charging you allocation charges again for the additional premium levied when upgrading your plan. You've already made the case that the cost of insurance charges are the same or lesser for the medical coverage of your plan after upgrading. So why should the new premium amount quoted for your plan have any increment in the first place and why should you be expected to pay any further additional charges?????

This upgrade is basically an excuse to reprice your policy for sustainability, which maybe the ITO didn't account for sustainability properly in the policy's initial pricing. Why should you, the consumer, be expected to bear the burden for the ITO's mispricing and other errors???!

1 & 3) You have every right to insist on the insurers and takaful operators (ITOs) footing the bill as they have not kept up with your reasonable expectation in relation to the original annual premium amount.  The expectation implied in the pricing of the product was for the original annual premium to be sufficient to sustain the policy until the end of term.

If the ITOs weren't comfortable in taking on this risk, they should not have had the authority to set the minimum amount of sustainable annual premium for given insurance policy coverages nor would BNM be able to make it a requirement for the ITOs to price the IL contract such that it was expected to be sustainable until the end of term. There is legal force and value to this expectation. It is not zilch or zero. It has value. The question is , what is the value? And to me, the value implied is a no lapse guarantee if policyholders keep to their original annual premium payments and didn't make any withdrawals. Also, if the ITOs didn't want to take on pricing risk, they should not have allowed for investment returns to be considered in pricing the IL policies nor should they have sold long term products. The moment the ITOs did that, they effectively implied a certain expectation in relation to the investment performance of the IL unit funds as well as the fixed nature of the cost of insurance and other long term charges in the product.

Policyholders have an ironclad case. But whether our courts have competent, impartial judges and whether we have true professional actuaries who have very strong ethics is a separate matter. Our Malaysian actuaries are not competent especially when it comes to consumer rights and doing right by them and a lot of these issues are due to their lapses/incompetence.

But I still think consumers have the winning hand as this issue is beyond bonkers. I mean just look at the retained and ongoing earnings of life insurers. They are earning beyond RM 4 billion per annum and have over RM 20 billion in equity/retained earnings. There is no good reason to reprice the products/IL contracts. They are not facing going concern risks. The question is, do you as a consumer want to go through the hassle of fighting for your rights? I say you should, but it is ultimately up to you. Your call. If you keep letting them ride roughshod over you, they will keep increasing the premiums, but if some of you or a significant minority of you start complaining and taking action, this whole house of cards will fall. They will cry uncle.

How to hold them to account? By lodging complaints with BNM and the financial ombudsman and by launching a class action lawsuit. It's time for you guys to band together. Either band together and fight back or keep getting bullied. The choice is yours. None of you have to eat their spit.

Also, please do not buy into the media, BNM and the ITOs fluff excuse of medical inflation. It's just a ruse. They are doing this solely to guard the earning power of ITOs. The only ones standing in their way is you. The consumer. You have the ultimate power. Not them. Do not be afraid of them. None of these (medical inflation and other excuses) were unforeseeable. They did not account for even a measly 8% in annual medical inflation throughout the term of the contract although this has been the case for private healthcare expenditure in Malaysia since 2011. The ITOs have huge bloated expense and commission structures in place and excessive cost of insurance profit margins. And yet, they failed to account for  8% per annum medical inflation because they are confident the media is on their side and they can paint a one sided picture of hospitals being the cause although that isn't the reality of it.

I've already proved it to you. You can have a policy with death and disability coverage of RM 200k and a medical card with average payout of over RM 25k with claim frequency of over 12 claimants per 100 policyholders for only RM4200 per annum. So, please do not buy into their medical inflation excuse.

Then it is not enforceable by law that the published premium rate during initial purchase had to be fulfilled to maturity

I think the premium rate thing is already known, it is just hidden down in the t&c fine print when you sign the contract. The problem lies in many agents never bothered to explain because they just want fast money.

When I first signed insurance as a teenager, I also don't know much about this as the agent just shove the policy down my parents' throats. But after I went to Singapore for about 10 years and had to buy medishield, only then I learnt about repricing, premium increment with age, ILP etc.

When I 1st bought insurance, ... not so many info available ( no internet), perhaps I was too young to really pay attention to the things said 30-40 yrs later, ..things about the insurance charges started in the policy table will be different according to age and that it will be subjected to changes.
The medical inflation rate at that time i believe was not high then......as I believes it started to jump alot after Covid.
Also due to the income n budget, there are only a limited types of insurance I can buy.

Later years, BNM came out with, "free look" requirements, which allowed the purchaser to read and understand before actually holding to it.
Now in the internet age, many info are available, so reading those info in the policy during the "look free period" easier

the problem still persist because not many people know what to look, where to look, or even understand what they're looking. The way insurance is sold in malaysia today is still smoke and mirrors, agents don't really explain well to their customers, and alot of info is still not available online.

A recent case when I visited a relative during this year's CNY, an aunt >60y/o, she complained that her premium has increased 50%. I told her to let me see her policy, it turns out her agent proposed to increase the premium on Wealthcover, not health, that is the main cause of the 50% increase. I tried explaining to her but she was not convinced, because she accepted what her agent has told her, and also it sort of tallied with the medical repricing thing currently in the news.

I think the premium rate thing is already known, it is just hidden down in the t&c fine print when you sign the contract. The problem lies in many agents never bothered to explain because they just want fast money.

When I first signed insurance as a teenager, I also don't know much about this as the agent just shove the policy down my parents' throats. But after I went to Singapore for about 10 years and had to buy medishield, only then I learnt about repricing, premium increment with age, ILP etc.

There is no hack. ITOs know about this so they don't allow for top-ups to be made until you've fully paid up any outstanding annual premium amounts

Not true.

Wonderful. Can you please announce in this forum which ITOs allow for this?

If what you say is true, what is there to stop policyholders from just paying top ups (high allocations) and not paying regular annual premiums (subject to high allocation charges; lower allocations)???

Wonderful. Can you please announce in this forum which ITOs allow for this?

If what you say is true, what is there to stop policyholders from just paying top ups (high allocations) and not paying regular annual premiums (subject to high allocation charges; lower allocations)???

This is a loophole in the older ILPs, which the newer ILPs have fixed. My SmartProtect Essential 2 policy does not disallow this.

The part that really pisses me off and makes my blood boil  about your situation is that they are charging you allocation charges again for the additional premium levied when upgrading your plan. You've already made the case that the cost of insurance charges are the same or lesser for the medical coverage of your plan after upgrading. So why should the new premium amount quoted for your plan have any increment in the first place and why should you be expected to pay any further additional charges?????

This upgrade is basically an excuse to reprice your policy for sustainability, which maybe the ITO didn't account for sustainability properly in the policy's initial pricing. Why should you, the consumer, be expected to bear the burden for the ITO's mispricing and other errors???!