That's not how insurance work. Insurance works by collecting everyone money into a pool which is use to pay someone whenever claims are make.

Now if everyone don't claim then the pool remain constant. If people start claiming, it will come a time when there is not enough money for everyone. So because you are in the pool, you are also forced to pay up even though you never claim. Cause not everyone so good hearted don't want to claim.

Think of it as a reservoir. When reservoir no water, water rationing affects everyone.

Imagine you already pay so much for insurance, to get back some of the money back, you need to get yourself admitted or else money wasted right? So if one person think like that, you bet there will be others who also think like that.

Also the coverage amount is the same but the sustainability (means the insurance can last until xyz years) will decrease if you don't agree to increase the premium.

This is what my agent said not I said, standalone tends to follow the projected rate increase and yes there are some years which are exception while ILP won't follow the timetable. So some people get increase in price as early as 2 years.

That's why I didn't go with ILP. I was like I already pay so much and you want me to pay extra money every now and then when the insurance company request? Nope. Not going to happen.

This post has been edited by Ramjade: Jul 29 2023, 04:37 PM

You made the right choice. ILP was told will never have premium increase.. now different story from them.

In theory. But in reality different story. I was luck I did research here and on Reddit and found out the truth.

Just sharing here. My parents non ILP, when they reached a certain age and issues started to come like diabetes and all, the insurance company refused to insure them anymore.

Now i asked my agent what if my ILP when I reach a certain age they don't want to insure me anymore. My agent said in ILPs there are clauses stating to what age I must be insured whether or not I have made claims before that age.

So in a way, that is the advantage of ILP according to my agent.

Yes what you said is true but that's for the old plan. Nowadays all new plan does not have that clause anymore. That's the not guaranteed clause. Nowdays insurance only won't cover if you
1. Don't pay on time/fully pay
2. Commit fraud
3. Surrender policy

That was one of my main criteria make sure there is guaranteed renewal. I said I don't want your word, I want black and white from company. She pull up the contract and it's stated there policy will be renew unless the above happen (can't remember the whole terms an condition)

This post has been edited by Ramjade: Jul 30 2023, 01:14 AM

Same these 3 years keep Naik, I don't agree so they reducing my insured years from 85 to 72, next year not going to reduce I guess since investment link fund start doing well

You don't pay they will reduce years of insured

This post has been edited by Pain4UrsinZ: Jul 30 2023, 02:33 AM

Personally, I'm ok if the conditions are made / declared upfront. What I'm pissed off is more on the way the SA carried out their sales talk.

Or else how will they make you buy? Many people got hook to ILP because if so call stable premium.

You bought ILP or term?

Wow. You spend around 10% of your income on insurance.
No wonder.

Why can't you just buy yourself?
You do realize you have to pay fees so you?

Unless, you can claim income tax. Then investment linked might be worth it if they focus on low risk investment.

I am pretty sure the insurance did not cover everything.

Only thing good about ge is, you can claim for income tax as well. And they even give you voucher and your surrender value increases each year. Taking into tax account, it's not too bad actually

Well. If your medical bills more then the max coverage good luck.

other insurance companies also can claim for income tax no?

I don't think he purposely wanna invest in those funds, those are only the available funds when you purchase an ILP

Can claim. But surrender value increasing?
You see. I am more interested that I put in and then get more out after income tax considerations.

My surrender value always increasing at the same amount as the premium that I pay.

I end up saving after claiming tax relief.

This post has been edited by BrookLes: Jul 31 2023, 02:13 PM

10% of income
Dont get wat u mean

I think that what it means.

Yes and why would you want to invest in those funds when you can diy and buy those bank stocks yourself.

Only advantage for investment linked is if you can save on taxes and they invest on only fixed income investment.

I dun mind paying them fees if my tax saved is more then the fees.