That is how insurance works.

I got one friend he is 60+, also never claim before.
Sadly only those discounted premium limited offer to only ILP only.

This post has been edited by Ramjade: Jan 29 2024, 02:58 PM

Strange never received any repricing for 2024 (using AIA standalone).

Reduce the numbe of years your are covered. Eg. Suppose to cover until 80 years old. You refuse to increase premium. So maybe now cover you until 76? How many years reduced will be inform to you.

This post has been edited by Ramjade: Feb 1 2024, 01:12 PM

When they give you letter to increase premium, it's written inside the letter if you don't pay up, your coverage years will be reduced to xyz year.

Yes. You can always do lump sum top-up to increase your years. You don't get this option with standalone. Standalone you don't pay, policy lapse. If you are a good pay master, no issue.

However I will never buy an ILP.

X-SenZ kindly read this post.

It's normal. Cannot run away from it. The Singapore one is not medical insurance. It's critical illness insurance. Singlife.
The only one no repricing is gathercare. See if you want to sub to them. It's cheap at RM300+ per year.

Insurance is not for profit and not for charity. They want to maximise profit.

When you buy insurance, you are transferring the risk to the company by asking them to pay for your bill. In return you insurance company needs to get paid.

This post has been edited by Ramjade: Mar 21 2024, 08:07 AM

Yes. But not subjected to most of the time non performing funds.
Hence only you get hit by the insurance part and not hit 2x (fund not performing and insurance part)

This post has been edited by Ramjade: Sep 5 2024, 07:20 AM

Very easy only. Every time the fund not performing well they can increase the premium and give excuse insurance not sustainable. I don't want them to give me that reason to hike my premium.

Now do you want to be subjected to that excuse like every year (cause the fund is like dead weight over long term)? I don't. I rather get hit on the insurance part. They cannot give me BS oh fund not performing so not sustainable excuse to raise my premium as I don't have any fund for them to manage.

If fund not performing, fire the fund manager and not ask the one buying insurance to pay for the losses.

You do you. I do mine.

This post has been edited by Ramjade: Sep 5 2024, 07:40 AM

Of course. I found out ILP cheaper. But after hearing about "voluntary top-up" and making it sustainable than both came to more or less the same thing.

It's simple crude excel file of using the projected premium they give.

But like I said I don't want them to give me that excuse to cannot sustain.

This post has been edited by Ramjade: Sep 5 2024, 07:54 AM

Tell me why should I pay extra for incompetence of the insurance company?

Do you think it's voluntary? It's more like being forced. If you don't pay your age sustainability decrease. Does that sound voluntary to you? If you don't top-up and no issue happen then it is voluntary.

Also like I mentioned, Every time fund making losses I have to increase my premium? Eventually the amount of top-up/increase premium will get excessive.

This post has been edited by Ramjade: Sep 5 2024, 01:30 PM

Bro I don't think you get my point.
Standalone you are only dealing with 1 point of increase in premium.
ILP you are faced with 2.
Insurance and fund not performing part. It matters if they are competent or not. Cause if a fund manager is competent, the ILP is paying for your insurance. If a fund manager is not competent, you have to pay for insurance and losses of the fund
If you have looked at the fund performance across most of the ILP (AIA, GE, prudential, allianz, Manulife, Tokyo marine) for past 10 years you will be very worried and won't even want to park your money with them.
Actually there is another one. Management fees of around 1.5%p.a

So don't laugh too early.

Let me put it straight by giving you a very easy example.

Insurance increase regardless standalone or ILP for simplicity sake increase RM10/3 years.

ILP increase say RM5/2y for bad performance.
1y no increase
2y RM5 for ILP
3y RM15 total for ILP 10 for standalone
4y RM20 total for ILP
5y no increase
6y RM35 total for ILP 20 for standalone
Get my point?

So my point is why should I take on the extra RM5 incurred by the ILP for bad performance?

Another example
My friend borrow my car. He kena saman. I need to pay his saman. Why should I pay his saman? Just because he used my car?
I should be paying for my saman and not his saman. Same thing. If you like to pay for other people saman, be my guest. 😂

Who cares about voluntary top-up for standalone? You can choose to pay until what age you want. If you can't afford to pay premium for that year, it's gone. Bye bye. Simple.
Next year you know already roughly say, I need to pay around say 7k, need 1y to get 7k. Let's make it 10k. Budget the 10k ready.
Eg, you plan to cover until 70. At 60 years old you can't pay. Then bye bye.
As long as can pay you can continue paying until 99 years old.

ILP if you refuse to increase premium, your coverage duration decrease. Same thing. If you plan to cover until say 70 years old, insurance company keep increasing premium and you already on the lowest tier plan and can't downgrade anymore, like it or don't like it, your coverage ends at 60 (likely sooner) once the fund have no more cash value cause you need to pay to keep the investment part active. So at age 60, if you cannot do volunteer top-up, your insurance ends at 60 year old. End of story.

This post has been edited by Ramjade: Sep 5 2024, 05:24 PM

All insurance plan will increase drastically as you age. Cannot run a way or avoid or slow it down even with ILP. That's why I said will come a time when the yearly premium > more the premium you paid in a year. When that happens, the insurance company will start selling your investment and then your fund will start being sold down. If a time comes when the fund is zero or less than the premium needed to pay for the insurance, you have top-up the balance or else the insurance will lapse and then it's bye bye.

So that's why I said for this kind of thing, make sure you have free cash flow coming in. If you can generate say 100k/year from investment, you can afford whatever premium the insurance company is asking at that time.

Can that be done? Yes. I have seen financial bloggers in Singapore and US doing that. All have 6 digit of passive income coming in every year. Some around SGD200-300k/year!!!

That's why I try my best to generate min 100k p.a in dividend income and another 100k p.a via semi passive income (selling options).
My options part more or less settle (I can reach like 90k p.a)

So be brave. Don't try to think of ways to run away. Just accept it. Prepare for it.

This post has been edited by Ramjade: Sep 5 2024, 07:38 PM

No. It's age gap. The older you are the more expensive the insurance. ILP or standalone same thing. This thing cannot run away (older you are, the price increases)

Use EPF instead of ILP to cushion the blow as EPF returns> ILP majority of the time for like annualised 10.years reurem.