Guys, I need you all opinion:
If you purchase RM 200 ILP insurance (no matter it's medical / life / critical illness), you pay RM 200 for consecutively 10 years.
RM 200 x 12 months x 10 year = RM 24,000 (paid)
Then you decided to terminate the ILP insurance and to withdraw cash value balance. The cash value has RM 8,000. If you consider the actual paid amount to ILP insurance, the calculation would be:
RM 24,000 - RM 8,000 = RM 16,000
If I want to calculate actual paid amount per month, then the calculation:
RM 16,000 / 120 months (10 years) = RM 133.33
Meaning that I use around RM 133.33 to purchase higher coverage in ILP rather than RM 200 per month? And RM 133.33 premium is lower than traditional (standalone) policy, only if I have better return that leads to high cash value.
Can I say like this?
1. Repricing
2. Sustainability of the ILP
Any insurance agent telling you that you have cash value at the end of ILP is lying to you. Your cash value will be at best 0. At worse negative. (medical ILP). If life and critical illness maybe still got cash value.
This is say around 70-80 years old time. They can't tell you this as cannot close the sales. Something to think about.