No worries, it won't go as far .. This ILP was bought when my dd was 1-2 yo. Now she is in her 20's so just wonder whether i should withdraw the plan and let her get her own standalone medical and/or term life.. Good thing about this ILP now, after 20 years, is the premium allocation to investment has reached 100% if I'm not wrong, but of course with the rising insurance cost that leaves not much for investment after all sorts of cost deductions.

Most people in insurance threads would say, ....buy term insurance and invest the different.....you will have accumulated more than with ILP after 20 yrs.

Ex, if for the almost/similar benefits n coverage, if ilp cost 2k while term insurance costed 1k.
Buy term 1k n invest that "saved" 1k to kwsp.

This post has been edited by MUM: Oct 22 2025, 08:30 PM

ok tat's right, perhas 1k term, 500 med, 500 into her newly opened kwsp ...

oh yeah btw.. part of the reason now i suddenly recall why I opted for this ILP was due to it being 'education policy' which is one of the tax relief item..

Just me thinking out loud.
Info given: insuree is 20 years old, healthy, ILP premium is RM3K yearly, and the surrender/investment value is above RM50K.

Since it’s an old ILP from 2005, I suspect the medical coverage is relatively low — probably around RM100K per year for hospitalization.
Can share if this is the case? if yes, then insuree seriously should add more coverage given his/her age of just 20.

Here’s a few potential paths forward:

Option A:
Keep the ILP, but stop paying premiums. Let the policy auto-deduct the medical portion from the existing investment units. Rough estimate — RM50K ÷ RM1.8K per year = ~25 years of potential coverage (assuming charges don’t spike).
Meanwhile, get a new medical card from another insurer (important — don’t overlap within the same company). Go for one with a higher deductible to reduce cost, but aim for at least RM1.5–2 million annual limit. Premiums can be quite reasonable — likely below RM250/month.


Option B:
Ask the current insurer whether the existing policy can be upgraded to higher annual coverage (1.5–2 million).


Option C:
If upgrading isn’t possible, take a new policy elsewhere. Once that’s active and past the waiting period (to be safe, wait 1 year), then consider terminating the old ILP and get the 50K rm.

For better comparison.

The benefits n coverage of both terms and ILP should be almost/similar.

Hi,
Thanks for the valuable feedback.

As the ILP stands now, it has 400k lifetime limit. And you are right about Option B, it has a upgrade possibility now which I'm trying to find out the what's the added premium & coverage like.

About Option A. I didn't know we can just let it deduct the medical portion, so if there is an option to terminate the Life coverage then it may work too. But AFAIK, ILP don't exist without Life+Med ? Will surely check it out.

And lastly, thanks for the reminder about withdrawing the old policy after a year ...

Cheers.

I'm going to give you an honest advice.

1. Retain the policy and let your daughter take over the payments. For one simple reason - the ILP is already in-force so long that the premium allocation rate is now at 100%. If your daughter were to re-purchase an ILP, then she will need to go through lower allocations in the initial years - all that money goes into the agents pockets.

2. While it is true that a standalone medical plan is cheaper (especially over the short term), in your case this doesn't apply since the ILP allocation rate has reached 100%. If you purely look at the ILP's medical rider COI charges vs a standalone medical insurance premium, you will notice the COI is a fair bit cheaper.

3. If this is with Great Eastern, highly likely that you can upgrade the medical rider. This is very important. Your daughter needs to upgrade to at least Smart Protect Shield 250 plan. She may need to pay additional premium, that is fine.

NOTE: Make sure the medical rider upgrade is done with FULL UNDERWRITING, not as part of a "free" upgrade with no underwriting. Very important - if she does full underwriting again (assuming she is healthy), she will be placed in the pool of healthy insureds. If she takes the "free" upgrade with no underwriting, she will be placed in a pool that combines both healthy and unhealthy insureds. In the longer run, the latter pool will experience faster/sharper medical repricing.

4. Your daughter may review the sum assured and the riders. RM3k annual premium for a kid is a lot, some things may not be necessary.

5. Depending on the sustainability testing (aim for 80 years, no need 100 years), if you really must, you can partially withdraw some of the fund value - there is no penalty whatsoever.

This post has been edited by contestchris: Oct 23 2025, 10:34 AM

ask for upgrade to the plan, especially change it to no lifetime limit. Annual limit should be at least 2 mil. Age 20 y/o is still pretty cheap to sign on a new plan, normally they won't even ask for any underwriting unless you really have a serious medical history.

My own experience with a relative, she got cancer and spent over RM 5 mil to treat it. Used up all her annual limit, luckily she's rich and got savings to cover the rest.

My old plan was around 1.5 mil annual limit, after hearing her story i immediately go and try upgrade. Not successful so had to sign a new plan, but it is worth it. In today's medical inflation environment, you cannot skimp on the premiums. Just for your reference, i'm 39 y/o, non-smoker, male, and the premium is 400/mth. The insurance I got has no lifetime limit and RM 12 mil annual limit.

This post has been edited by koja6049: Oct 23 2025, 11:06 AM

Is this a standalone or a ILP?

ILP, with prudential. I used to be with AIA but they cannot upgrade my plan, that's why the switch.

Thanks for telling
Just asking, .....
If you dont mind, if it is not inconvenient and when you feel like it, ....
Can take a picture of the "Cost of Insurance" table that is attached with the policy? (Especially table data from age 46 and beyond till max)

This post has been edited by MUM: Oct 23 2025, 11:24 AM

The COI table is split into medical rider + booster, too long to share full details here. But I just show you the abbreviated table:

how trustworthy or accurate is the table? especially after past few years' worth of drastic premium increases on old policies.

There's also a big premium jump after age 65. I'll just show up to 80, anything beyond 80, I don't think i'll be able to afford, just leave it to heavens hahaha

Can just get a rough estimates of the current 400/mth (4800 pa) premium paid at 39 yrs old against the stated cost of insurance charges..
While the stated COI at 40 yrs old is 1730 only + cost of booster?

( maybe can get a rough estimate of the variance of actual premium paid vs the shown COI in %?)

Based on the trends and postings in lyn, I would add minimal 7-10% yearly increment of the premium, especially after age 51 to the budget allocation

This post has been edited by MUM: Oct 23 2025, 12:38 PM

10% inflation essentially means doubling of premium every 7 years...
really scary.... no wonder people said if too poor, just die... (or no choice, rely on GH)

I think the COI is not equivalent to the same amount of the premium to be paid.

I could be wrong.....

According to a BNM report, .... 2016 to 2019, MHI premium grew on average 9.5% a year.
That was before COVID, .... after COVID, ... many reports and complaints of very high quantum of increases, until BNM had to step in to limit max 10%pa during the interim periods of few years in which they will try to find solutions that can try to be good to all.

Just 2 weeks ago, there had been reports of medical inflation of 15% in 2025

Medical insurance losses mounting as inflation outpaces premium growth, says PIAM
https://theedgemalaysia.com/node/773292

https://www.bnm.gov.my/documents/20124/2724...019_en_box5.pdf

This post has been edited by MUM: Oct 23 2025, 02:05 PM


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premium paid is mostly fixed RM400/mth till 80 y/o sustainability age. This is because the excess premium paid in early years is invested to use to offset the high premiums at the later years. of course things may change if there's another round of medical repricing down the road