For the second time in 3 years, I’ve received a letter on the increase in cost of insurance for my ILP’s medical plan. The quantum of increase is rather steep at 35%! This has resulted in increases to my monthly premium.

From what I gather, this will likely continue happening every 3 years or so. The future quantum of increase might well be higher than 35% as the good risks depart the medical plan and the bad risks (with substandard health resulting in high claims) remain.

What’s the best way to deal with this issue? It seems like the sustainability projections at the start of the policy are a joke and wholly useless as in just a few short years, there have been multiple repricing exercises and the premiums have been increasing.



1. Launch insurance charges for SmartMedic Xtra in 2014:


2. After 1st repricing in June 2020:


3. After 2nd repricing in July 2023:


This post has been edited by contestchris: Jan 15 2024, 06:42 PM

There is no 'one size fits all' answer imho. I too have seen my premiums increase significantly and there is no doubt that alternatives must be found. If you can afford it and your current and short term health risks allow it, we are thinking of going the 'self insured' route, whereby we put 50k pa or thereabouts into a high interest savings acount and, after just a few years, you have a pot of money that will cover most illnesses and operations.

We see it as being almost analagous to the renting v buying property argument. In this case, if you remain healthy you keep the money to pass on to the next generation, if you are not healthy then your costs are covered, but either way, you remain in control of your finances and medical choices.

Caveat the above with saying that this advice applies to Malaysia only. If you are travelling globally then individual health insurance per trip (including repatriation) is a very good idea.

And they always say, buy early to prevent price hike

In reality when during entry they already fully calculated everything be it u come in early or late all cost factored.

which insurance are you using? that's quite steep indeed. meaning even the earlier projected investment value cannot cover the cost. is the agreement event allow the price hike?

if so wouldn't it better to just switch insurance company?

Mine got 18% increased.

is your insurance on its own or investment linked?

if investment linked then not worth anymore as their earnings supposed to contra any increment

Is your Medical Insurance from Great Eastern?

totally agree.
the agent tells you to sign up early, because if you do it later, the premium will be higher. he does a projection and say that by paying this x amount at this age, the ILP can sustain until you're y years old. you agree and sign up.
after 3 years you receive a letter saying that in order to sustain until y years old, you need to top up your insurance because medical cost has gone up. so you top up. after another 3 years they tell you the same thing, this time the monthly premium has gone up more than double - yes, it happened to me and messes up with your budget / expenses. imagine like paying rm300 and couple of years down the line they tell you to pay rm800+ ?
i didn't bother to top up my premium because of the ridiculous increase. I just continue on with the old premium, it may lapse at a younger age but i also create my own insurance by putting money into savings.
I'm ok wth an increase in premium BUT it should not be of a too significant amount.

This post has been edited by abhipraaya: Jan 10 2024, 05:55 PM

No matter which insurance plans from any companies in Malaysia...

It's all around premium hike till 40%

The older your age the higher the increase...

Don't say below 30yo is cheap...
Not anymore compared few years back....

Cannot blame insurance company solely...
Those Private Hospital too involved... And those keep abusing their insurance plan to admit in hospital for small thingy... Fever also admit to hospital 😏😂

medical inflation is higher than any high interest savings you can have, and if can afford 50k pa, I wouldnt want to go through the stress of thinking 50k pa is enough or not, might as well buy insurance

Honest answer. Not trolling
1. Switch funds. Ideally choose one with US exposure, minimal china and Malaysia exposure.
2. Go standalone route (that way you get rid of the baggage of lousy underperforming funds), you only get the repricing for medical inflation part. I don't hear standalone people complaining. Only ILP
3. Use gathercare if you are stil eligible (this one no repricing as not insurance and not for profit I think)
4. Switch to more expensive room plan. I already showed you the higher tier insurance usually kena less repricing Vs lower and mid tier.
5. Self insure. Set aside a fund, every month put in money into that investment. Money used for insurance premium divert it there. Can be very simple. Say your investment fund consist of public bank and Maybank stock As long as you never draw down the fund it will keep increasing vs insurance. Unlikely you will use insurance now. Likely going to use it in your 60s or 70s. That time substantial amount unless you are in 50s. If you are able to get 6 digit of passive income a year, what medical insurance do you need?
6. Govt hospital. But need to wait your turn, cramp with people and lower down service to B40 lifestyle.
7. Do a top-up lump-sum into your ILP say RM50-100k and it will stop the hike for a while. Not a route I want to take. This was advise to me by my agent when I asked about ILP. She said ILP will always increase in price and buy topping up lump-sum l, it will increase sustainability. Your money, your call.

I also kena conned. After doing research found out buy early or late more or less the same. Lol. But I buy now cause I know will use it in the future. Cause if you get illness already, too late to buy insurance already.

This post has been edited by Ramjade: Jan 10 2024, 06:38 PM

Regarding ILP vs STANDALONE.

This is a data that I got for standalone plan...just for discussion sake

I don't hv the ILP version,....I only got the data for the standalone plan.
In 2011 age 39, premium was 930
In 2024, age 52, premium is 3430

For a coverage of 300k lifetime.

In 13 years, the quantum of increase is just staggering ....$2500 or 268.8% increases.
( every year about 20% increase??)

Looking at the quantum of rate increases, I believes the premium may reach 5k in another 5 yrs at age 57, then may even reach 10k at 68.
The chances of needing medical claims would be alot higher at age 68....insurance company will be happy I cannot continue to afford paying the premium ...

If one is not wealthy, .... May really "eats" into the budget of the retirement plan.

I always envy those that had bought the 1 mil standalone med coverage at young age....hopefully they can hv the mean to sustain it before they die

Just hopefully someone can provides comparison of the quantum of rate increases of ILP Vs STANDALONE plan .

What is lower cost or cheap to buy now may not be so after the premium increases...





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Yeah agree it is always about coverage, never about being cheaper to start early.

heck even my newborn daughter cost as much as mine with lower coverage, who says younger cheaper lol.

Speaking of the investment link they said it is compulsory for medical card package, my way of dealing with it is going for the fund with lowest return so I can get better plan with same premium.

Is this the right way to deal with these? since the forecasted return is variable I think it may not worth it.

Actually you want fund with the highest return cause poor performance of fund will cause the insurance company to keep asking you for money cause your sustainability is affected with low returns fund.
Not true. You can buy standalone. I did. Of course when I ask for standalone insurance, all the agent showed me sour face except one.

That's one good advice. Appreciated.

The price increase when old is insurance way of being polite and tell you to get the f**k off. We have milk you enough now we don't want to pay. If you want to continue, kindly pay up.

No other way. Only way is if Tnb is your boss. They cover you until you die.

I have shared even actuarist avoid ILP. People who design ILP literally avoid ILP. You know something is wrong.

Try to talk to agent and see if you can get better plan. As long as still healthy can jump to new plan every 10 years.

This post has been edited by Ramjade: Jan 10 2024, 06:53 PM

There are always will be someone going against any topic.

Just because of some "certified" people says it is good...do you fall for it that that things really suits you?

Just bcos some actuaries or doctors says it is good...




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Agents are busying using your premium to fly here and there. The best way is to avoid agent, buy online directly from the insurance company. Be aware of agents sweet talk, just buy the basic. Reduce unnecessary premium. Just buy another plan from another company. Or coz ur agents will black face and tell u that u will waste ur current plan becoz u already bought it early.

or just buy critical illness plan. our plan B for medical coverage is government hospital, not so bad la but just have to tahan with the queue and parking spot.

as for CI, is a lump sum payout to u, can be used for anything. so u dont have to be worry about medical repricing. since for CI it is fixed.

I had heard stories of waiting lists of some normal emergencies like stent procedures can be long in govt hospital