Hi sifus, hope you can help answer this:

Given the forever rising medical charges, is there any difference with ILP and non-ILP policies if I want to update for the new costs?

For example, we have non-ILP AIA MediFlex Plan 250 with MediBoost for 1mil annual limit.
Say after 10 years, RM250 hospital room and 1mil annual is impossible to cover anything serious.

What are the options available to update? Will we need to get an entirely new policy, and be subject to new waiting period? Does this differ between ILP and non-ILP?

My understanding of ILP is:
1. Pay more earlier and the investment returns hopefully will cover the increasing premiums at later ages
-but counterpoint is the 5% front loaded cost (not sure if standard across industry) will eat into the returns
2. Since there is cash value, there is some protection against policy lapse.
-this is actually the most attractive feature in my opinion
3. There's also the fancy benefits like AIA Health Wallet
-but I think it's just nice added benefits, not big consideration in grand scheme of things

What I wanted to confirm is, does ILP have special treatment in regards to policy upgrades? I heard that term = no upgrades possible, ILP can get offers from company to upgrade.

What other benefits are there that I missed with ILP to justify point no.1?

That's a good point...

Is it true that only ILP are offered upgrades? Assuming no claims of course.

Thanks a lot kind strangers, conversations like this restores my faith in humanity.

I think the above points have confirmed my beliefs. As long as I have self discipline with investing and payment, I'm fine with some good ol' term insurance. There's no point in "hoping" to get upgrades, that's not a sufficient selling point.

I already had an ILP for some years so I actually already paid the 'tuition fees', if you will. Gonna let that live until my waiting period for new term insurance is done. Live and learn I guess!

This post has been edited by Altrost: Oct 1 2025, 10:54 PM

Hi all, continuing on the ILP discussion previously.. There's one more benefit I missed which is the option to have the "waiver" rider so the person insured can waive paying the premium after CI/Disability.

I also had a thought, wondering if it makes sense:
Since ILP won't lapse as long as there is enough cash value, isn't it possible to not follow the suggested premium?

Example:
Premium supposed to be 4K but actually Cost of Insurance is 1K
Mr X pays RM1.5K only (some extra for safety and cover fluctuations) and self invest the other 2.5K
This way Mr X can have ILP forementioned benefits but still invest (some of) his money himself.

Any thoughts?

This post has been edited by Altrost: Oct 8 2025, 11:05 AM