Commission more or less the same (based off the commission table). Both commission table didn't break down how much goes to company and how much goes to themselves.

Long run probably ILP is less, short run obviously standalone is less

Actually cannot say. I think more or less the same. Cause I ask my agent how much need to topup, she told me around RM50-70k. But if you keep changing ILP then maybe cheaper.

Since you guys are so curious on the commission
https://www.bnm.gov.my/-/ops-cost-control-l...siness-24122019

it's on BNM website for public view.

you can refer to page 18/22 where it compares the total commission of IL and non-IL in % terms. even though it mentioned financial adviser, it's actually the same for those in the agency model with upline and downline. you just can't see the breakdown of what the upline and downline earns if you refer to this page but i guess what matters is the total commission you are paying as a consumer.

as someone has mentioned, actually if you ask for the formal quotation from the insurance company, it's all clearly stated there. enforced by BNM.

Nothing to be curious about.

I am just stating a fact by asking a simple question.
Which is more profitable to both the agents and the firm?

No passing judgment from me. Insurance is a business, not charity.

Thanks for the link. Appreciated it. Will keep it for future reference.
It did killed my curiosity. I am curious thus I asked question. Be it in a simple or a more conplex form.

you may consider it that way,.....you are not alone,.
as i had heard many people i knew that does not want to buy insurance gives that reason too.

but i just consider the "utility of coverage" to be inclusive of both tangible (actual utilisation) and intangible (peace of mind and all the extra actions you could take by having the result of having that peace of mind).

as insurance is a risk mitigation plan,....you transfer that risk to someone. someone take that risk for you.

This post has been edited by MUM: Jan 14 2024, 08:14 AM

just for info, just incase you guys missed post 104,....

the details are is on BNM website for public view. as linked by adele123
https://www.bnm.gov.my/-/ops-cost-control-l...siness-24122019

https://www.bnm.gov.my/documents/20124/7616...t=1578648660074

Out of topic a little. Most insurance companies ILP, they source from unit trust fund companies. Normally, these ILPs comprise of the unit trust fund companies flagship/award winning funds, which have long track record. Also, BNM's Investment Linked Business under para 21.3 (https://www.bnm.gov.my/documents/20124/948107/PD-Investment-Linked-Business-2023.pdf) has capped the management fee chargeable for all other funds (excluding Money Market and Fixed Income) at 1.5%. Say for example, if the target fund is charging a management fee of 2%, the target fund management company will rebate 0.5% to the insurer and these amount will be reinvested in favour of policyholders.

Insurance super cheap when you are under 40 yo. Recently i subscribed to etiqa life insurace, premium is RM40 monthly for age 36 and 500k coverage. But the premium will go up to RM400 monthly at 60 yo. By 70 yo, premium will be RM 1600. And the worst thing is after 82 yo, I will be paying more than 500k but I will only get 500k max payout. So if I lived beyond 82, then etiqa definitely is the winner. I believe this will be the same scenario for AIA or prudential.

Thanks for the info shared.
BTW, only life insurance coverage? Does it includes medical n hospitalisation coverages

if you good with managing your own fund ; buy STANDALONE

I bough 2 of my insurance with investment link ; so that in general ; the premium doesnt increase so much when grow older (assume no inflation/price spike)

If you see your standalone price; it will be increasing premium as you aged; but with investment link the monthly contribution is almost the same

Of coz standaline is CHEAPER to start with ; while investment link you already paid higher monthly upfront


Personally, if you dont care about insurance i.e only want use it when you need ; just get investment link ; less things to think off

And ; always review your INSURANCE every 3 years or so.. I did a mistake of never review my insurance for 15 years..ended up ive been paying a loosing insurance ; but cant opt out now because it is a Investment link i.e I loose much more now, until I hit the maturity rate of 20-25 yrs

Life insurance is very cheap, when you are young. Medical insurance is different.

While I guess the awareness of online insurance is good, it's like saying fried chicken is more expensive than kangkung. It's not comparable in that sense.

Even "cheaper", personal accident insurance that does not cover too much frills.

Kek, like that better don't buy the insurance. When the pool got ppl start claiming & they start making losses, they will start to ask ppl to top up.

More like a kutu fund that will benefits a few who claims earlier, those who pay on time & didn't claim will suffer at the back.

Why keep changing ILP is maybe cheaper? Any trick?

If for non-participate plan or non-ILP, we can buy online and it will super cheap when you young, furthermore no agent commission, get rid of all the agents interferences, what's more is every insurance company in Malaysia have their online product, but we need to prepared ourselves the steep increase of premium when we becomes older, but if calculated the premium in details, non-ILP still worth as compare to ILP in 2 conditions:

1st 0 agent's commission - in ILP agent commission can reach up to 40% first or second years, thereafter in the reducing % up to 6 years.

2nd if you are an investors, why you want the insurance company invest for you while you can do it yourself, but even if you are not investor putting the capital in FD can generate you risk free 3-4% per annum, compare to insurance funds giving back 2-5%, and many times you even repay back your fund's capital due to investment loss.

Of couse non-participant plan we have to run ourself when comes to claiming because no agent will do it for us due to we don't pay agent's fees. That's reason I always advise don't buy medical insurance with non-participant plan, we need agent service us when we sick, or laying in the hospital.

As for life insurance or pa, there is no reason why we take up ILP, when comes to claim this is our beneficial job and it's one time claim process, just leave the job to them and they will compensated with our insured sum, we don't need agent involved.

As for illness, this is maybe one time claim process, and possibly second or more claims due to different insurance company has different type of coverage, e.g. early/intermediate/late stage, some even have multiple illness coverage. Depend on how we expect the claim service we want, for me I don't mind and i will anticipate the most claims I will have is not more than 2 thus I choose non-participant plan.

We have also needs to prepare ourselve premium increase for non-ILP plan, insurance company will increase anytime depend on how they access the insurance fees, in certain age there will be a large gap increase.
Then in this sence will ILP will be good? Actually they are the same, just that we pay it now or pay it later, depend on how we mentally can accept the large increase of premium later. ILP we need to pay off the commissions to the agent, remember this is a huge amount 6 years commission, please do not think insurance company pay them, commission has fully factor in our premium, so you will see the funds value for the first few years are very slow.

See the vicious cycle picture.

If might not be cheaper as when you age,the premium of new plan would be higher to start with.
If you change insurance, you need to continue to pay existing insurance for 2 more years so that you can still be under insurance coverage protection after buying the new insurance. As there is usually a 2 yrs "contestability period" for that new insurance to consider with.

If you want plan to change insurance every 10 yrs.
Be prepare for a 12 yrs premium payment (20%) more than your 10 Yr plan.

This post has been edited by MUM: Jan 15 2024, 11:06 AM

Hi, may I know what do you mean with review? Like coverage? or the fund they put in?

review your coverage; switch / move coverage details; add or drop riders etc

better if your insurance agent is also a wealth planner