How to Read Great Eastern Investment-linked Policy Statement

If you bought Great Eastern investment-linked policy, such as Greatlife Portfolio Insurance and Supreme Flexilink Insurance, you will receive a quarterly statement. If your policy is in forced on 7th of January, your first statement should be printed a few days after 7th April, and subsequently every three months. Almost everybody find it hard to understand the statement. Of course there is exception such as some of my engineers or accountants clients who never asked for my help. So I decided to write a details guide on it.

Look at the sample below:

01-great-eastern-investment-linked-policy-statement.jpg

Let’s break down the details and I will explain how to read each section.

02-itemised-details.jpg

How much is the existing fund?

The first part is the balance of unit brought forward. Your policy money is stated in number of unit. As shown in the example, the policy currently has 917.35 unit of Fund 02 (Lion Growth Fund) and 501.11 unit of Fund 05 (Lion Progressive Fund). So how do we convert the unit into real ringgit value? It is shown in the statement too:

Fund 02 (RM) = No. of unit x unit price = 917.35 x 1.006 = RM922.85

Fund 05 (RM) = No. of unit x unit price = 501.11 x 1.860 = RM932.06

In short, that is the amount of money left in the policy on 5th Jan 2007 – RM1854.91

03-balance-forward.jpg

Deduct policy fees

In order to pay for the policy fees of RM6/month, Great Eastern deduct 2.97 unit of Fund 02 and 1.62 unit of Fund 05 from the policy on 5th Jan 2007.

04-policy-fees.jpg

Deduct Insurance charges

The total insurance charge is RM54.91 from 05/12/2006 to 05/01/2007. You can read the itemized protection which is known as rider in a policy and the respective monthly charges. After deducting the unit, the balance is shown as 887.22 for Fund 02 and 484.66 for Fund 05.

05-insurance-charges.jpg

New premium invested

The policy premium is due on the 5th of every month. You can see that the premium paid is being used to buy more investment fund unit on 7th Jan 2007. From the RM85 paid for Fund 02, only RM68 is allocated to buy unit, but RM17 is unallocated. This means 20% of the premium is being charged to pay for the initial acquisition fees. This shows that the policy is in the 3rd or 4th year. When the policy is in the 7th year, all premiums paid will be 100% allocated for investment.

Tips: It is better for the policy holder to pay premium for policy older than six years because of the highest allocation after six year.

06-investment-premium.jpg

Summary

Actually after you know how to read the statement, you probably won’t be interested to read the details in the future. But you will be very interested to read this summary page. It shows the total investment value of your policy and also the grand total death benefit, which in this case is equal to the sum of death benefit plus the investment value.

07-summary.jpg

I wish this article will enable you to understand your policy statement in the future. I am glad that you are insured :)

I recommend these related articles for further information:

Best Products from Great Eastern Life Insurance Malaysia

Why you should first buy Investment-linked Insurance Policy

Everything about Life Insurance Company in Malaysia

Investment-linked vs. Traditional Insurance

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10 Comments

  • KCLau

    Reply Reply June 30, 2008

    GE has just updated their system. The investment-linked policy statement will only be sent to policyholder twice a year (half-yearly)

  • Chai

    Reply Reply October 11, 2009

    Hi, this post has been some time already but for me will be the 1st time to read it. I was wondering how much is the total premium to pay per annum or permonth for both investment-linked insurance policy. For the investment unit acquired by an insured permonth, isn’t it is the balance (Premium permonth deduct with the overall charges permonth listed: insurance charge, policy fee, critical illness ben rider and etc) x the latest NAV price of that specic fund. The policy you have shown on year 2007 has been a few years plan already or just a newly insurance plan for the insured?

    • KCLau

      Reply Reply October 12, 2009

      It is paid for several years already.

  • Rosnizam Bin Abdul Rahman

    Reply Reply November 26, 2009

    Sir,
    I bought a house from house developer in Kluang. The developer offered me a group policy from Grate Eastern namely Property Reward Scheme under Lion Progressive Fund with the total fund of RM5000.
    One of the house development officer told me that I can get the total amount I purchase the house ie RM135,800 (30 years loan) when I finish pay the loan.
    Could you please comment on the statements aboved.
    Thank you.

  • Rosnizam Bin Abdul Rahman

    Reply Reply November 26, 2009

    Sir,
    Where can I update the Lion Progressive Fund price daily (website?). For example we can access the daily price and performance chart for Public Mutual through their website ie Public Mutual.

  • PriscillaTheresa

    Reply Reply May 11, 2010

    Dear Sir / Madam,
    Please send me the payment statement for Jan -mei 2010 .
    policy no.0083635996.

    Thank u,
    Mageswari a/p Ramalingam

  • Elvin

    Reply Reply July 8, 2012

    Hi,

    I notice they got bid price and offer price. Customer should follow which price?

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