Is Investment-Linked Insurance a Sneaky Trap?
- Thread starter chretien22
- Start date
blessedbeverly614
New member
@chretien22 for your case, it increases your annual limit from 130k to 1.2m and some other benefits
chretien22
New member
@blessedbeverly614 that is significant. sounds not bad..
@chretien22 Rider basically means it is like an extra mini policy that supplements the main policy.
One of the primary benefits of ILP is that the coverage is very flexible and can be tailored accordingly to your needs. However, the drawback is that you need to really understand what you are signing up for before firming up your premium commitments.
Your primary medical card Aplus Med-I has a maximum annual limit of RM260k/year when I referred to the product sheet.
The Booster plan adds up to 1.5m annual limit provided you're on Plan 250 and above for your main Med plan, which in this case you are, otherwise you'd have no booster. You can also find this info in the product sheet.
The general guide is that your life insurance should be 10x your annual pay with medical insurance being around 5x annual pay. So, if you find that the coverage is too much, have your agent adjust the coverage to around those guidelines. Have him/her quote you the new premiums and see what you get.
One of the primary benefits of ILP is that the coverage is very flexible and can be tailored accordingly to your needs. However, the drawback is that you need to really understand what you are signing up for before firming up your premium commitments.
Your primary medical card Aplus Med-I has a maximum annual limit of RM260k/year when I referred to the product sheet.
The Booster plan adds up to 1.5m annual limit provided you're on Plan 250 and above for your main Med plan, which in this case you are, otherwise you'd have no booster. You can also find this info in the product sheet.
The general guide is that your life insurance should be 10x your annual pay with medical insurance being around 5x annual pay. So, if you find that the coverage is too much, have your agent adjust the coverage to around those guidelines. Have him/her quote you the new premiums and see what you get.
@chretien22 A plus med-i is your medical coverage. Your annual limit is 137k
Med booster gives you another 1.25mil annual limit.
Total annual limit for your medical plans is 1.3mil++
Critical care is critical illness coverage. Major disease such as cancer, stroke, heart diseases etc.
Med booster gives you another 1.25mil annual limit.
Total annual limit for your medical plans is 1.3mil++
Critical care is critical illness coverage. Major disease such as cancer, stroke, heart diseases etc.
chretien22
New member
@chretien22 It seems like Great eastern can offer you better value for money in my oppinion, don't be afraid to shop around first
@chretien22 Any ILP is a sneaky trap and you should avoid all agents trying to sell this.
@chretien22 I have the same doubts. I'm currently on an RM 350 per month AIA ILP plan (been paying since I was 27, I'm 30 now) as well. What I've told is that this plan is beneficial to me as the premium is gonna remain the same till I'm 1OO years old. How true that is, I have no idea TT. With term, what I understand is, once it expires, reapplying for a new one will eventually become costlier due to age (increased premiums). I am also at a lost on what to do....... 
zainonechia
New member
@chretien22 investment-linked to earn money = no
investment-linked but part of health insurance is okay.
I think for most newer health insurance, there is no option to opt out of the investment linked part already unless you are willing to pay a higher premium
investment-linked but part of health insurance is okay.
I think for most newer health insurance, there is no option to opt out of the investment linked part already unless you are willing to pay a higher premium
@zainonechia Slight correction: There is option to buy standalone medical plan, so you can avoid IL plans.
But i agree with the above IL plan it is not to earn money.
To OP, and i have provided many feedback, i think the key thing is you continue with this medical plan but dont hope to make investment return out of your takaful plan. You already borne the high fees first few years. You already took the hit.
I myself bought IL plan but i get staff benefit of doing so. But the medical plan you have has 1.3mil annual limit which should be sufficient until kicking the bucket. I am about the same age.
But i agree with the above IL plan it is not to earn money.
To OP, and i have provided many feedback, i think the key thing is you continue with this medical plan but dont hope to make investment return out of your takaful plan. You already borne the high fees first few years. You already took the hit.
I myself bought IL plan but i get staff benefit of doing so. But the medical plan you have has 1.3mil annual limit which should be sufficient until kicking the bucket. I am about the same age.
@chretien22 Hi OP, i think it may be more purposeful for yourself to discuss with someone (who hopefully is not an insurance agent because i worry you end up just getting confused about buying another insurance product) about what you want to achieve from your insurance planning.
I think you are confused about what coverage you have and what is out there.
To put it simply, you are paying RM325 a month, and your medical coverage is 1.3mil, Critical Illness coverage is 52k, death coverage is 52k.
Can you get cheaper out there with a different plan, be it IL or non-IL? Probably yes. I am not sure but you have to survey.
Is it beneficial then for you to switch to a cheaper plan if it cost you only rm250 now. The answer to this is more tricky. Changing insurance plan is not like changing postpaid plan. There is alot of fees that you have paid. And you may pay more if you buy a new one. Which is why BNM always have this warning that they force the companies to put in. Buying a life insurance is a long term commitment, it is not advisable to switch plans due to the high initial cost.
But what most people dont know is, you can go back to AIA ask to reduce the premium instead of getting another plan that cost 250. There are limitations to this but for simplicity, let's assume it can. In the world of mobile postpaid plan, it may have the same effect. In the world of insurance it is not the same. I dunno how to explain how it's not the same but that warrants a separate reply and post all together.
The actions available to you arent just 0 and 1 where you keep or you say bye bye. There is something in between.
Good luck.
I think you are confused about what coverage you have and what is out there.
To put it simply, you are paying RM325 a month, and your medical coverage is 1.3mil, Critical Illness coverage is 52k, death coverage is 52k.
Can you get cheaper out there with a different plan, be it IL or non-IL? Probably yes. I am not sure but you have to survey.
Is it beneficial then for you to switch to a cheaper plan if it cost you only rm250 now. The answer to this is more tricky. Changing insurance plan is not like changing postpaid plan. There is alot of fees that you have paid. And you may pay more if you buy a new one. Which is why BNM always have this warning that they force the companies to put in. Buying a life insurance is a long term commitment, it is not advisable to switch plans due to the high initial cost.
But what most people dont know is, you can go back to AIA ask to reduce the premium instead of getting another plan that cost 250. There are limitations to this but for simplicity, let's assume it can. In the world of mobile postpaid plan, it may have the same effect. In the world of insurance it is not the same. I dunno how to explain how it's not the same but that warrants a separate reply and post all together.
The actions available to you arent just 0 and 1 where you keep or you say bye bye. There is something in between.
Good luck.
chretien22
New member
@lynq Thank you so much for taking time to actually explain it to me! Yeah i dont want to fall for another trap. Actually the cost itself that i pay every month dont really bother me. I just don't want to end up regretting for signing up things i dont even knw and get shocked of finding things when it's too late. I was doing some reading and it just made me anxious cause i am actually clueless of things that im paying for every month.
My main concern is i dont want to be surprised that the IL plan i have is what making me lose money or actually not helping me whenever i need to claim for my insurance. I admit im a noob and thought that I'm screwed if i didnt pay to protect myself but more on investment that is not even profitable. All i care about is that it's actually to protect me when i need it, and not mainly a cover up to make me spend for investment rather than a medical coverage that i need.
My main concern is i dont want to be surprised that the IL plan i have is what making me lose money or actually not helping me whenever i need to claim for my insurance. I admit im a noob and thought that I'm screwed if i didnt pay to protect myself but more on investment that is not even profitable. All i care about is that it's actually to protect me when i need it, and not mainly a cover up to make me spend for investment rather than a medical coverage that i need.
dongchau123
New member
@chretien22 no point reducing, if you worry, might as well take a pure medical insurance without the investment part.
@chretien22 Sneaky trap