Post: Top 10 FAQs About Life Insurance. Prudential Malaysia Traditional Policy premiums are invested at the insurance companys discretion, subject to guidelines set by Bank Negara Malaysia.There are two main types of ILPs: regular premium and single premium. a)
Regular Premium ILP Like the traditional life policy, the regular premium ILP provides financial protection against premature death and acts as a tool of investment. However, the degree of flexibility marks the difference between them. Below is a summary of the differences. Protection/Investment Mix Traditional Policy -
the proportion of protection and investment is pre-determined. You can change the mix by surrendering part of the policy or by purchasing additional policies to increase the protection. ILP -
you can increase or decrease the protection or investment element in the policy to suit your financial needs. Premiums Traditional Policy -
you have to pay the same premium amount throughout the term of the policy. ILP -
you can decide to increase or decrease the premium amount to suit your budget, subject to certain limitations. Investment Choice Traditional Policy -
premiums are invested at the insurance companys discretion, subject to guidelines set by Bank Negara Malaysia. ILP -
you can choose from the various investment funds offered by the life insurer, based on your own risk/reward profile and investment time horizon. You can also switch from one fund to another when the investment climate or your own risk-profile changes. Risk As with all investments, there is a risk factor to consider. You will experience the ups and downs that naturally occur in the investment market. These ups and downs are reflected directly in the value of the funds, thus making the returns under an ILP more volatile. However, in the medium to long term, ILPs are likely to give higher returns than traditional policies due to the greater exposure to equity investment.
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