Author Topic: Agents, pls enlighten me on Term Life vs Investment Link  (Read 7940 times)

Offline ohjani

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Agents, pls enlighten me on Term Life vs Investment Link
« on: January 30, 2008, 02:31:18 PM »
I have always have a feeling that I shouldn't buy investment link plan for investment return, instead I should put my money in other proper investment vehicles such as unit trusts or real estate or shares and etc for the investment purposes.  One of the reasons is because I don't like the risk of being told to top up when the market is not good. 

Recently I approached an agent and she proposed something that make me a bit undecisive now.  Initially, i told her I want to buy a Term Life (no return) with sum insured RM300k and PA RM50k, she quoted me a premium of around RM2k/yr.  I am quite satisfied with this proposal, but later on, another agent (from different company) quoted me an investment link proposal using the same criteria and the yearly premium also RM2k, yet it has a projected return of RM20k at the age of 70.  Now I am confused, should I consider the investment link proposal?  In summary:

[Term Life Proposal]
Term: till age 60
Sum Insured: RM300k + RM50k (PA)
Yearly premium: RM2k
Return: NIL

[Investment Link Proposal]
Term: till age 99
Sum Insured: RM300k + RM50k (PA)
Yearly premium: RM2k
Return: RM20k
Investment Fund: Bond Fund with conservative risk of 5% return p.a.

Which proposal should I buy?  What are the underlying risks which the IL agent might hide from me?  What is the chances of me having to top up when I choose to invest in bond fund and plan to buy the insurance till age 60 only?  Afterall, I am not very interested in the return, what I want is to get a big sum insured with the least premium.  But the IL agent told me why not make my insurance plan a bit value added with some return although my priority is not the return.  Now I'm confused ....  ???

Offline KCLau

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #1 on: April 02, 2008, 05:35:10 PM »
Hi,

I would say you should take the investment-linked policy. It is the cheapest insurance plan I know as long as you are still young.

If you are worry about top up in the future, read this article about how to avoid policy lapse.
« Last Edit: November 22, 2008, 04:23:33 PM by Admin »
http://~*.com - Personal Finance Money Tips

Offline leno

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #2 on: April 03, 2008, 09:51:55 AM »
Investment-link is a marketing scam.
The merging is to confuse u and make u hard to evaluate your policy.

Use insurance as insurance. Use unit trust as unit trust.
Never get insurance advice from insurance agent only.
Never get unit trust advice from unit trust agent only.
Because there are conflict of interest involved - in other words,the agent will probably always put their interest before yours.

Next option is try to ask the 2nd agent to quote u the premiums of the same insurance policy but which is without the investment-link.
By any common sense, it should be lower.

 >:D >:D >:D
King of Analabs


Offline rob2001al2001

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #3 on: November 26, 2008, 11:21:45 PM »
KC LAU, I am surprise you are promoting ILP. I had regarded you to be my investment guru... but from the many other sifus input here, ILP is not recommended.
Could you explain why you are pro -ILP?

Changbl

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #4 on: January 22, 2009, 11:49:06 AM »
Because KC Lau is also an insurance agent himself and earns comission too.

Offline leno

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #5 on: January 22, 2009, 12:19:55 PM »
Agro bank
Group Persoanl Accident Scheme
AGRO KASIH

with only RM 50 per year

Death due to Accident                    RM 50,000
Permanent loss due to accident        RM 50,000
Burial allowance                             RM  3,000
Medical - Accident                         RM  2,000
Medical - Snatch Thievery               RM  3,000
Ward Cash Allowances (max 30 days)RM  50 per day

 :D

Offline hovercraft99

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #6 on: August 28, 2009, 03:56:32 AM »
[Term Life Proposal]
Term: till age 60
Sum Insured: RM300k + RM50k (PA)
Yearly premium: RM2k
Return: NIL

[Investment Link Proposal]
Term: till age 99
Sum Insured: RM300k + RM50k (PA)
Yearly premium: RM2k
Return: RM20k
Investment Fund: Bond Fund with conservative risk of 5% return p.a.


If the the above quotes are true , then you should choose Investment Linked .............frankly I doubt it !!!!!!!!!

Term Insurance is good if you know when you are going to heaven or you are prepared to be covered or protected for a specific time ( Term ) Most term Insurance expires before you expire ...that is the Big problem !!!!

Investment Linked covers you till 100 :) .... ( whole life linked with investment = Investment Linked )

Like any Investment there is no guarantee ..........hence there is a risk of losing your investment plus protection !!!

To be safe then buy the traditional Whole life policies ( owning it )  !!! But to be cheap then but Term ( renting it )

Bottomline is what you pay is what you get !!!!


Offline danieltkb

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #7 on: November 13, 2009, 01:53:17 AM »
GO FOR WHOLE LIFE, it had life fund.
ILP COST MORE, and term is the most cheapest.
i guess you had code wrongly on the term and ILP premium ,
normally your term is .0333 over cost of ILP.

ILP is RBC, which is good for the company.
meaning the company, is focasing to reduce the risk on you life,
you pay more protect less,
this is what happen to top company in Malaysia.
RUN AWAY FORM THEM, THEY ARE AFTER YOUR $$$$

DONT BE BLIND BY THE $$$$, OR ARE U SLAIN BY IT!

Offline umeshmalani

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Re: Agents, pls enlighten me on Term Life vs Investment Link
« Reply #8 on: September 10, 2010, 02:40:30 PM »
Daniel,

you are right that term life would be cheaper. but have a look at the clauses stating that premium is NOT guaranteed.

on the other hand IVL would give you lesseer burden at old age as it would utilise the cash value to pay for the insurance cost involved to cover you.