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

interesting...touch wood my ilp havent kena increase yet under aia lol if kena, i'll prob just cancel...enough of the ilp rubbish...

Problem with government hospital is lack of bed if your sickness is serious...

They just keep you in the emergency department room for few hours, keep holding up you there... Then like mid night or week hours in morning... Discharged you says, just take medicine given... Later 1 or 2 week time, come back see got improvement or not 😏

How many years? I got this in 2016, then repricing in 2021, another in 2024.

medical insurance premium increases are a very common occurrence until there are numerous similar threads in LYN

Insurance Premium Naik!
https://forum.lowyat.net/topic/5396455

Medical card premium increased
https://forum.lowyat.net/topic/5049342/+20

medical insurance cost sudden increase 29%, normal !?
https://forum.lowyat.net/topic/4753108

Insurance companies announce higher premiums, Do we really need medical card?
https://forum.lowyat.net/topic/4894421/+0

Prudential Medical card premium increase, Medical card
https://forum.lowyat.net/topic/5125897

AIA naikkan my premium
https://forum.lowyat.net/topic/4865841

WTA Insurance premium increase
https://forum.lowyat.net/topic/4784419/all

Insurance premium increase due to age factor
https://forum.lowyat.net/topic/4771163/all

Bro, even FIRE bloggers in Singapore also advised against taking ILP. These people got nothing to sell me. No course. They just blog to share experiences.

I wish that is true. Medical insurance with limit of rm1m+ need to go via agent. Those no need medical insurance usually limit is RM100k+.

Also the only insurance with 1m+ limit which don't need agent is Fi.life (partner with Generally Malaysia)

go look for the statistic of insurance sales of ILP vs standalone....
perhaps can get more input

they have nothing to sell to you but they may not provides the FULL pictures...

just like some people that from their "experience" promotes money games or stock trading or forex tradings etc etc....
they don't sell those products to you,...but they may not provides the FULL pictures

This post has been edited by MUM: Jan 10 2024, 09:21 PM

ILP sells.

They memang got nothing to sell. In fact people who follow these financial bloggers end up better than asking banks or agents or financial planner. I have been seeing their posting for years already. They are legit. Really nothing to sell you and they explained their reasoning why they choose to avoid ILP. Why they invest this way, etc.

You seems very pro ILP and agents. Lol.

This post has been edited by Ramjade: Jan 10 2024, 09:23 PM

they memang have nothing to sell to you but they may not provides the FULL pictures...

just like some people that from their "experience" promotes money games or stock trading or forex tradings etc etc....
they don't sell those products to you,...but they may not provides the FULL pictures

Is teaching people how to plan their own financial journey or investing in diversified etf not provide full picture? I think they provide more than enough picture.

there are others financial planners that promotes ILP too...they are legit too.

EACH have their point of views,....the issue is which point of views do you liked to follow?

if you liked STANDALONE,... so go with it,....
i also bought STANDALONE in 2011 and 2008, ...i hv experience to tell that just beware and take notes of the "quantum of rate of increases

looking at the sales of ILP more than Standalone insurance policies,....there must be something going on....perhaps agents pushes more or more people knows about the quantum of increases or ???

agents obviously prefer to sell ILP due to the commission payout to them. No need to waste time in trying to figure this part out. and naturally insurance firms prefer ILP as it gets to grow its asset management biz as well.

Yup regardless of fund making or not making money, get paid asset under management fees.

The loser is the buyer. That's why invest in asset company and insurance company. Turn the cash register around.

This succinctly captures the vicious cycle! It's a death spiral I'm sure!

Now you know why I said if still healthy just change new insurance every 10y. It reach a time where you cannot change anymore (once you got some illness)

ILP supposed to sustain the same premium for the number of years promised in the policy. outdated insurance policies should be dumped and renewed. either new policy or change insurance company.

why are you comparing singapore to malaysia? we have different healthcare systems

that is i suppose to be the same for standalone policy too....but they have a clause inside that mentioned they can increase the premium at anytime they want too

when you change policy or insurance company,...do take note of the "no coverage" period or periods that will be subjected to detailed scrutiny if you claim.
lagi worst, they may not covers you preexisitng illness if any

This post has been edited by MUM: Jan 10 2024, 11:37 PM

Health system maybe different but principal behind insurance is more or less the same.

They also kena repricing like crazy cause everyone admit because of insurance.

In theory. In reality nope.

This post has been edited by Ramjade: Jan 10 2024, 11:38 PM

This time increase due to bnm last year Oct time aldy give memo dy

standalone is worse cause they have no buffer. that's why you only cancel the old insurance after the new insurance has passed probation to prevent any lapses.

that means you will have paid 2 insurance premiums for that period.. perhaps 2 years of contestability period?

This post has been edited by MUM: Jan 11 2024, 12:03 AM

Yes that's right. Or if you are brave just cancel the old one and buy new one and use govt hospital while waiting for the new medical insurance to mature and then you will be covered.

Get a deductible plan.

Won't help much. It just help to lower the premium paid but will still be hit with deductible.

To to top it all off, the insurance only insured you up to like 70-80 years? Just when you need it most, they don't want to even insure you. Wise up.
Insurance is a risk calculated business where insurance company always win. How else they can afford a full color centerspread on newspapers announcing the success of their sales managers every now and then. They money comes from you. And when they increase the premium, did you see if they actually increase your coverage value? Or your coverage remains the same while they increase your premium stating higher medical cost but they conveniently did not increase your coverage... points to ponder. Mine did not increase the coverage while increasing the premiums and it's beyond 40% increase.

I had the same issue and I interpolated the increase amount up to age 75 when they stop insuring. The amount is staggering and I decided I am not going to do that.

Set aside funds for self insured. You have to be persistent in topping up that fund.

This post has been edited by Capt. Marble: Jan 11 2024, 07:24 AM

Set aside funds for self insured. You have to be persistent in topping up that fund.
1 month set aside 1k, yearly returns averaged 6% ( conservatively)
1 year = 12k
10 yrs = 120k + app roi 40k = 160k

If got medical need, you only hv 160k to use.

12k per annum insurance premium can get his much medical coverage?

Go for self insured plan if you are sure you will not need medical spendings of more than 150k in the next 10 yrs?

In that 10 yrs, if you had made medical spending of 150k, the money from your self insured plan will hv to start from 0. ...that is the time you may need more medical spendings as you are now 10 yrs older, or needed more medical follow ups.

Also, you will need to have to come out with money for deposit during admission and discharge....well unless your CC has high limits then that is not a concern


This post has been edited by MUM: Jan 11 2024, 08:16 AM

Pot calling kettle black je...

Insurance companies knew all too damn well what is going on. Claim more then they asked customers to pay more.

That is insurance polite way of saying get the f**k out. We don't want to cover you when you are old. We have milk you enough when you are young. You want to be cover, pay up.

That's old insurance. Nowadays all new insurance cover you until age of 99 provided you can pay up the premium. Around 20-30k/year at that age. Can even go higher.

I show you how.
https://singaporeanstocksinvestor.blogspot....n-life.html?m=1
https://singaporeanstocksinvestor.blogspot....-smile.html?m=1

Like I said he is one of the blogger I respect.

It's not like keeping the money in savings account earning nothing. If you put into say mmf, conservatively can earn 3%p.a which will be worth something in the future.

Again I agree with Capt marble. Need discipline for it. Not many can do that.

This post has been edited by Ramjade: Jan 11 2024, 08:27 AM

Passive investment thru stock investing???

Ha ha, ..that is a "good" way to gamble with money for risk mitigations

You haven't read his blog. He have been generating 6 figure SGD income for like 10 years already. He already FIRE a long time and he even have 6 figure of cash buffer sitting in FDs, Sg govt bonds. Lots of people have don't it.(US side). Don't dismiss it.

Like I said earlier I am also on early FIRE. I am one of those people. I can choose not to work if I don't want. I am doing part time cause no need to answer to stupid bosses. No KPIs. Like I said my passive income today can pay for my 80year old premium. So think again.

Let me show you another financial blogger. In fact he posted recently in lowyat too.

This post has been edited by Ramjade: Jan 11 2024, 08:41 AM

When 100% of the insurance companies failed 100% of their projection for decades, it's safe to say that they deliberately overestimating their potential investment return and underestimating future costs to trick the consumers to sign up for their ILP.

This forummer (imaged) had this to says about his "investment" too.

There are also many in forex or stock forums also said making 10-15% per month in their investment activities .

Just a note of concerns: Your money earned in the 1st 10 yrs may not last 1 major surgery and its follow up treatment .....


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I would say, they do it intentionally to slowly increase the premiums and to avoid a sudden big increases that would made customers angry and raises BNM queries.
As they are "allowed" to make periodic increases to suits the "said" medical inflation

Forex, stocks, FDs are just tool. Up to individual to use whatever tool they are most proficient one. Not all tools can be used by everyone with the same proficiency. Kindly see evidence provided and make your own decisions. I have already tagged you in the other thread.

if u have any friends families who are insurance agents. (or just ask them to send a simple SQS)

ask them to breakdown the commission for ILP vs standalone.

see which one do they get more.

Well said, ..as there is no way can get the same proficiency, thus I will definitely not subject my dependent of money for risk mitigations to it.

I think I did read Ramjade posted about the commission rate breakdowns about a year or 2 ago

Which one get more commission?.. I think since the premium for ILP is more, they will get more.

Try buy online ...May bypass the agent commission?

This post has been edited by MUM: Jan 11 2024, 09:15 AM

at max 1 year. actually, the main focus is try not to fall sick and not try to rely on insurance lol


new plans cover up to 100 years old now. time to change plans.

Good one

That's the scammy part. They can do a better and more accurate projection at the beginning so that the customers can anticipate and make better planning for it. But they won't, because if they show the real numbers, the people who willing sign up for their ILP (most profitable product) will reduce significantly.

I think few years ago BNM had already had them made a more stringent projections by narrowing down their projected numbers??



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No.. haha. it is standalone. Almost 30%

ILP only 15-20

Some agents actually don’t care if u wanna buy standalone or ILP. And some agents are pushing u to buy standalone because later in life when u thinking of adding life or critical illness. They will just ask u to buy a new plan. Life 1 plan. CI 1 plan.

The beauty of ILP is that u can delete add on rider and still keep the policy. Maybe waiting period la need to start Balik. But other than that. ILP is ok.

As for the sustainability. Ask ur agent to choose the lowest risk funds as to not oversell the returns. I know some companies can promised as high as 10% per annum. Gila.

They give that table. 2%p.a return and 5%p.a return. All ILP have that.

Yup...

Just pass the cost to customer

Insurance company won't lose $$$ one 😏

BNM only request them to give projections and follow up, which they did.

But accuracy of the projections? You know I know.

Ramjade, I think if I can remember correctly, the commission rate is not that low....
Did I remembered it wrongly?

Perhaps ask BNM to tighten the projection "range"??

Mine since 2014… i think around 2019 they did offer increase medical limit, pay extra 10% but i dunno if this count ls as repricing since my limit increased. I suspect is just the agent trying to get commission again. He’ll prob hunt me down soon again…

Orang Malaysia lead an unhealthy lifestyle and they claim insurance a lot. This what learned when I was in the insurance sector.

This causes the premium for others to increase.

More or less the same. Few % difference I believe. But it matters if amount is large and volume is large.

Another stuff simple flu, cough all get admitted. Lol.

the more premium increase, the more income for private hospital.
like KPJ heathcare near 3 billions income for 2022

Is it not something like 55, 45, 30, 25....
Reducing yearly for a few years?

All also reducing and no commission after 7 years. Those no commission have coverage of RM20-50k. You can buy that directly online.

Is the insurance reliable say when you need it the most when there is no agent to follow up for you?

Or is the insurance agent basically using the same escalation protocol as you like calling the same support line/raising ticket.

How much a value agent can bring to you VS without? anyone walked through these experience on their own before?

Projections are only projections and can still result in their funds making losses. one only can hope the fund manager doing their job properly.


yes wait till the insurance company rejects the claim on the first try and nobody coaches you or the doctor how to rewrite the medical report to get the claims back. good luck navigating all the turns while you are half dead on the hospital bed.

That is why some people suggested going for just online purchases to avoid having agent experience

Some had positive agent experiences , some had bad agents experiences too.

Agent is useless in my opinion. But you can't get rm1m+ coverage without going through agent.

That's why don't let them decline your claim. Be truthful. Wait 2y until after purchase insurance to use the insurance. Pay on time.
After 2y generally no issue.


This post has been edited by Ramjade: Jan 11 2024, 09:54 AM

In MYS all projection from all insurance company is the same.
You need to ask your agent to give you the previous year fund performance and management charges then you make your own decision.

Don't put into more than 1 fund, as the management charges alone could be high

Unfortunately certain plan need to be sold by agent only due to the license, especially those policy with returns

My medical insurance got no return. But no way I can buy myself online i have tried.

This post has been edited by Ramjade: Jan 11 2024, 10:13 AM

Yes, that's what I'm telling.
What (policy) we can buy online is less than what agent can be selling

Correction. My medical insurance have no return. It's basically me burning my money.

You receive the utility of medical coverage. Is that considered burning money?

Out of curiosity on all these cost of insurance increase, do you all check your annual statement to compare the cost of insurance increase?... Not refering the premium paid but actual cost of insurance deducted after your paid premium is converted to funds unit.

My overall cost have creep up slowly over years but did not recall a dramatic jump but expecting a big one when hit 60...

Cost of insurance deducted will increase every year simply due to age. That's different from medical repricing where there's a one off bump across the board for everyone.

Yes... But this repricing will translate into actual cost of insurance which is to be paid...

I have not seen a dramatic repricing notification thus far for many years that I need to top up. Maybe the cash reserve was able to sustain it as I intentionally have spec an extra investment contribution so I don't get caught out unexpectedly down the road which for sure an ever upward trajectory...

And I have also refreshed my policy 4 years back when the insurer offer an upgrade without medical check leveraging same submission back 10yrs+ ago. Yes there was some increased premium but also massively increase my coverage limit to unlimited lifetime which was capped previously.

This post has been edited by gamenoob: Jan 11 2024, 11:35 AM

Yes. Burning money if you never use it. Like my friend. In his 60+. Never use his medical insurance.

I think those cost of insurance is not publicly shown. More like company secret?

What insurance company is that?

This post has been edited by Ramjade: Jan 11 2024, 11:12 AM