Traditional Insurance VS Investment-Linked Insurance (pros & cons)
Before year 2000, there are only traditional
life insurance policy available to the
market. Since then, some insurance companies in Malaysia had come up with many
investment-linked insurance products. Let’s look at some major differences
between the 2 type of policies: Investment-linked vs Traditional
policy.
In the illustration below, I had used the ING 2 best-selling products: ING Prime Life Insurance Portfolio(Investment-Linked) and ING Premier Critical Cover Portfolio (Traditional policy).
In the illustration below, I had used the ING 2 best-selling products: ING Prime Life Insurance Portfolio(Investment-Linked) and ING Premier Critical Cover Portfolio (Traditional policy).
The 3 major differences are:
1)
Protection or sum assured
Traditional
policy: The protection is guaranteed to increase to double of the initial
protection over 20 years. In this case, from 50K to 100K. If the policy owner
keeps paying the premium, the protection will just keep
increasing.
Investment-linked: The life assured can choose from a range of protection. In this case, from 24k to 200k. The protection will remain fixed unless you request for changes.
2) Insurance charges
Investment-linked: The life assured can choose from a range of protection. In this case, from 24k to 200k. The protection will remain fixed unless you request for changes.
2) Insurance charges
Traditional
policy: Charge the premium on an average. It is known
as Level
Premium.
Investment-linked policy: Will
increase over time, according to your age. This
make investment-linked competitive when you was young, but will increase when
you are getting older. This is known as Natural Premium /
Top-Up.
3) Cash value or Returns
Traditional policy: The bonus is declared in yearly basis. Once it is declared, it is said to be vested. It means when insurance company declared a certain amount of bonus to you, it is kept with your policy and won’t be taken away disregarding the market performance.
Investment-linked: Policy owner invest the
remaining premium in the fund they choose. It can be a low risk fund such
as Income fund, or other Equity funds which are moderate to higher risk
comparatively. Even though policy owner may get higher return or cash value when
the market is bullish, but all the return might be wiped away when market turn
bearish BUT it can provides us BIG Protection in terms
to PROTECT our INCOME with peace of mind.
CONCLUSION
So which policy suits
you? Traditional policy is the one you will keep for whole life. If you
interested in investing, then you may choose the investment-link policy. It is
much risky and expensive but you might terminate your investment-linked policy
when you retire. If not, you can at least
reduce the protection to save on the ridiculous insurance charges at older age.
BUT, if you're planning on getting
medical card, it is better NOT to take a medical card that attach
to investment-link because it will reduce your protection and the premium will
increase not because your age increase but it also depends on the unit and stock
down-turn.
As I have stated in the previous post, if you really want to invest, it's better to invest in the Unit Trust. More secure and profitable :)
As I have stated in the previous post, if you really want to invest, it's better to invest in the Unit Trust. More secure and profitable :)
Traditional Insurance VS
Investment-Linked Insurance (pros & cons)
Sebelum tahun 2000, hanya polisi insurans hayat tradisional yang terdapat dipasaran. Sejak itu, beberapa syarikat insurans di Malaysia telah mengeluarkan banyak produk insurans berkaitan pelaburan. Mari kita melihat beberapa perbezaan utama antara 2 jenis polisi ini: Polisi Investment-Linked vs Polisi Tradisional.
Sebelum tahun 2000, hanya polisi insurans hayat tradisional yang terdapat dipasaran. Sejak itu, beberapa syarikat insurans di Malaysia telah mengeluarkan banyak produk insurans berkaitan pelaburan. Mari kita melihat beberapa perbezaan utama antara 2 jenis polisi ini: Polisi Investment-Linked vs Polisi Tradisional.
Dalam ilustrasi di bawah, saya
telah menggunakan 2 produk jualan terbaik ING: ING Prime Life Insurance
Portfolio(Investment-Linked) and ING Premier Critical Cover Portfolio
(Traditional).
3 perbezaan utama
adalah:
1) Perlindungan atau jumlah
yang diinsuranskan
Polisi tradisional: Perlindungan dijamin meningkat kepada dua kali ganda daripada perlindungan awal selepas lebih 20 tahun. Dalam kes ini, dari 50Khingga 100K. Jika pemilik polisi sentiasa membayar premium, perlindungan akan terus meningkat.
Investment-linked: Hayat yang diinsuranskan boleh dipilih daripada pelbagai jenis perlindungan. Dalam kes ini, dari 24k ke 200K.Perlindungan akan dikekalkan melainkan anda ingin melakukan perubahan.
2) Caj insurans
Polisi tradisional: Premium dicaj secara purata. Ia dikenali sebagai Premium Level.
Investment-linked: Akan bertambah dari semasa ke semasa, mengikut umur anda. Ini membuatkan polisi investment-linked sangat kompetitif apabila anda masih muda, tetapi akan bertambah apabila anda semakin tua. Ini dikenali sebagai Premium Asli / Top-Up.
3)Nilai tunai atau pulangan
Polisi tradisional: Bonus diisytiharkan setiap tahun. Sebaik sahaja ia diisytiharkan, ia menjadi hak anda. Ini bermakna apabila syarikat insurans mengisytiharkan jumlah bonus tertentu kepada anda, bonus tersebut akan disimpan dengan polisi anda dan tidak akan dipengaruhi oleh prestasi pasaran.
Investment-linked: Pemilik polisi melaburkan lebihan premium daripada dana yang mereka pilih. Ia boleh menjadi satu dana berisiko rendah seperti Dana Pendapatan atau Dana Ekuiti lain yang berisiko sederhana hingga dana yang berisiko tinggi. Walaupun pemilik polisi boleh mendapatkan pulangan yang lebih tinggi atau nilai tunai apabila pasaran meningkat, tetapi semua pulangan mungkin akan terhapus apabila pasaran menurun. Tetapi ia boleh memberikan kita perlindungan besar dari segi perlindungan pendapatan.
KESIMPULAN
Jadi, polisi mana yang sesuai dengan anda? Polisi tradisional adalah jenis polisi yang anda patut anda simpan untuk seumur hidup. Jika anda berminat untuk melabur, maka anda boleh memilih polisi investment-linked . Ianya lebih berisiko dan mahal tetapi anda mungkin boleh menamatkan polisi investment-linked anda apabila anda bersara untuk mengelak bayaran premium yang tinggi. Jika tidak, sekurang-kurangnya anda boleh mengurangkan perlindungan untuk menjimatkan caj insurans tidak masuk akal pada usia yang lebih tua.
TETAPI, jika anda bercadang untuk mendapatkan kad perubatan, ia adalah lebih baik untuk TIDAK mengambil kad perubatan yang diikat dengan pelan investment-linked kerana ia akan mengurangkan perlindungan anda dan premium akan meningkat bukan hanya kerana peningkatan umur anda, tetapi ia juga bergantung kepada unit dan turun-naik saham.
Seperti yang saya tegaskan pada posting sebelumnya, kalau anda benar-benar mahu melabur, laburlah dalam Unit Amanah yang di iktiraf Bank Negara. Lebih terjamin dan menguntungkan :)
Samsuriah @ samsuriah.ahmad9@gmail.com
