You may always ask some common questions when deciding on buying an insurance plan.

  • Which the best Insurance Plan is, whether is Investment Link Plan (ILP), Traditional Plan (TP) or etc?
  • Plans offered by which company would be the best? Whether Company A or B offered the best benefits and protections? And hence, we should buy a plan product from which insurance company?

Some insurance agents may always claim that their companies were the best insurance company in the country and have offered the best plans. Believe it or not is totally depends on yourself.

From my point of view, there is no “best insurance plan”. Indeed, the best insurance plan should be those plans in which had taken effect; best suit your circumstance and start providing protections to the insured.

Apart from this, I think it’s quite impossible to figure out the best insurance company. Anyway, this shouldn’t be the most important point to be considered by the insured. You may ask why? Ok, let says you have bought the “best plan product” from the “best insurance company”, but getting poor services from your agent. What for? Hence, the attitude/services of agent should be the first point to be taken when you plan to buy an insurance policy.

One of the weaknesses of human nature is greed. They always tend to find a plan that offers best protection, with high cash value, but lowest premium. If I told you that I have such plan offered to you, dare you buy it? And how far you believe it? If you are the businessman who running an Insurance company, dare you involve/invest in such business?

Everyone in the world have their own superiority and weaknesses. Hence, would you believe that ILP and TP don’t have any weaknesses? Anyway, if you have just started to work and have limited budget to spend, then, I suggest you start with ILP first. This is because it covers the major parts of the basic protections. Later, if you afford to upgrade your protections, then, you should think about the TP.

When you have chosen ILP, then you should take notes about the charges. These charges will determine the premium amount and protections benefits. As an insured, you should know about the following scenario:-

  • Low premium and high protections means larger potion of premium will be allocated as charges, and the remaining cash value will be lower.
  • High premium and low protections means smaller potion of premium will be allocated as charges, and the remaining cash value will be higher.

In ILP, every protection has its own charges, such as Medical Card, accidental protection, death protection, and etc. Indeed, you can get more information regarding such charges from the Statement sent to the policy holders every 3 months. From the statement, you will know how your premium was distributed, the calculation of charges, and the remaining cash value.

The charges will increase accordingly with our age. Hence, how should we manage it? We will discuss about this in later time on Risks and Funds Management for ILP.