Updated: October 2026
Bank Negara Malaysia (BNM) requires insurers to send every investment-linked plan (ILP) owner a statement each year. It shows how long your cover is expected to last. Some years it needs no action. Other years it says your fund won't be enough to pay for your cover until the end of the policy. Each section below covers one kind of letter or situation, so you can go straight to the one you have.
The requirements below come from BNM's policy documents on investment-linked business, medical and health insurance and complaints handling. RinggitPlus checked each requirement against the text of those documents. To see how an ILP works, read What Is An Investment-Linked Plan? first.
Takaful operators send the same documents for investment-linkedtakaful certificates, so everything below applies to those too.
What Your Annual Statement Is Telling You
BNM requires your insurer to send the statement within two months after the end of its financial year.
The statement shows your units, the charges taken out during the year, your death benefit and your surrender value. The surrender value is the cash you'd get if you cancelled. It also shows the result of the yearly check, which BNM calls the sustainability test. This is your insurer's test of whether your fund can pay for your cover until the end of the policy term. If it can't, the statement says your cover may end early. Some insurers send the result as a separate notice. Manulife, for example, calls its version an Annual Sustainability Notice. Some insurers also show the expected end date, the year your fund is likely to run out.
| What the statement says | What it means | What to do |
| Your cover is expected to last to the end of the policy term | Your fund can pay the charges for the whole term if it grows as your insurer expects | You don't need to act now. Check next year's statement |
| Your cover isn't expected to last to the end of the policy term | Your fund is expected to run out before the term ends. The statement explains why, suggests a top-up and lists other options | Ask your insurer for the expected end date and compare it with how long you need cover |
You may not need cover for the full policy term. If so, shortening the term is one of your options.
The expected end date can change every year. It comes sooner when investment returns are poor, when you take money out, when you miss premiums and when your insurer raises its charges. It also comes sooner if you add a rider, such as medical cover or critical illness cover, without paying a higher premium.
What To Do If Your Statement Says Your Cover Won't Last
Lapse means your fund has no money left, so your insurer can't take out the charges and your cover ends.
Some insurers send their own early-warning letter. Great Eastern, for example, sends an Insufficient Investment Value Notification. It warns that your fund may not cover your charges and suggests ways to keep your cover going.
You have several options. Your policy contract shows which ones you can use.
| Option | What it does | What it costs you |
| Make a one-off top-up | Adds an extra payment to your fund. At least 95% of a top-up goes into your fund | You need cash now. A top-up buys you more years, and rising charges can eat into them again |
| Pay a higher regular premium | Raises your usual payment each month or year, so more goes into your fund | You pay more every month for the rest of the term |
| Reduce the sum assured | Lowers the amount paid out if you die, so the insurance charges taken from your fund fall | Your family gets less |
| Shorten the policy term | Charges stop earlier, so your fund has to last fewer years | Your cover ends earlier than planned |
| Remove a rider | Stops the charges for that rider | You lose that cover |
| Do nothing | Your fund keeps paying charges until it reaches zero | Your policy lapses around the expected date and your cover ends |
| Surrender the policy | Ends the policy. You get the surrender value, which can't be less than the value of your units after charges, policy fees and any surrender charge, a fee for cancelling early | On regular premium policies of 3 years or more, insurers can put as little as 60% to 95% of each premium into your fund in the first 10 years, so you may get back less than you paid in |
Your insurer takes your insurance charge out of your fund by selling some of your units. The charge generally goes up as you get older.
An insurer can also raise its charge rates. BNM requires at least three months' written notice before any increase in fees and charges. The increase can only start on your policy anniversary (investment-linked business document, paragraphs 20.4 and 20.5).
When the insurer raises a charge your contract lets it review, you should get options. Depending on your policy, the insurer must either match the rise with an equal premium increase or suggest a top-up amount (investment-linked business document, paragraph 16.8). The top-up route is for older policies sold before 2020 that don't let the insurer change your premium. You should also hear about other options, such as reducing cover, shortening the term or removing a rider. Another option is to let your fund pay for the increase. If you choose this, the insurer must tell you it uses up your fund faster.
If Your Insurance Charges Are Rising
Your insurer takes your insurance charge out of your fund by selling some of your units. The charge generally goes up as you get older.
An insurer can also raise its charge rates. BNM requires at least three months' written notice before any increase in fees and charges. The increase can only start on your policy anniversary (investment-linked business document, paragraphs 20.4 and 20.5).
When the insurer raises a charge your contract lets it review, you should get options. Depending on your policy, the insurer must either match the rise with an equal premium increase or suggest a top-up amount (investment-linked business document, paragraph 16.8). The top-up route is for older policies sold before 2020 that don't let the insurer change your premium. You should also hear about other options, such as reducing cover, shortening the term or removing a rider. Another option is to let your fund pay for the increase. If you choose this, the insurer must tell you it uses up your fund faster.
If you get a notice, ask these questions.
- Which charge went up? It could be the insurance charge, a rider charge or the administration fee.
- What reason does the insurer give?
- Which clause in your contract allows the increase?
- Does the increase start on your policy anniversary?
- How does it change the expected end date of your cover?
Keep every reply. If the answers don't match your contract, you may need them for a complaint.
What To Do If Your Medical Rider Gets More Expensive
BNM's medical and health insurance rules apply to riders and standalone plans. If your rider's price is going up, BNM requires written notice at least 30 calendar days before the rise. The rise can only start on your policy anniversary or renewal (medical and health insurance document, paragraphs 8.13 and 8.14).
Check that your notice has these.
- The new price next to the current one.
- The reason the price is rising.
- Your options to switch products or move to a lower plan.
- For a rider paid from your fund, what the higher charge means for your cover and whether you need to top up.
Where the price depends on your age group, your insurer must also update you each year on the next expected increase. The update can come with your annual statement. Apart from price, your insurer can't change your benefits or terms during the policy without your written agreement.
You can lower the price of a medical plan by moving to one with a higher deductible or a higher co-insurance. The deductible is the amount you pay before the insurer pays. Co-insurance is a share of each bill that you pay. Every insurer has to offer at least one individual medical plan with a deductible of RM500 or more, or co-insurance of 5% or more. They also have to offer a range of other amounts. You don't pay the deductible or co-insurance for emergency treatment, for treatment at a government hospital, or for outpatient follow-up for a critical illness such as cancer or kidney dialysis. Check your policy schedule to see what applies to your plan, and ask your insurer which plans you can move to.
Before You Switch Medical Plans
Read the switching form first. BNM requires it to show what you'd give up, such as new waiting periods, extra things the plan won't cover and changes to your benefits. A new plan can have a general waiting period of up to 30 days, and up to 120 days for some named illnesses. It can also exclude conditions you already had or could reasonably have known about.
Another option is to drop the medical rider and buy a standalone medical card. If the rider is paid from your fund, dropping it stops that charge coming out of your fund, and the card's premium is paid separately. A standalone card is a new policy, though, so it can bring new health questions, waiting periods and exclusions. Keep the rider until your new standalone medical card starts.
MediAsas, a new basic standalone medical plan, is planned to go on sale in January 2027. It isn't an option for a price rise you're dealing with now. If you can manage the current price until then, you can compare it with your other options. It isn't linked to any investment. BNM's MediAsas page has the launch details, and BNM's MediAsas FAQs explain what it covers. BNM says the terms may change.
What A Withdrawal Does To Your Cover
A withdrawal takes units out of the fund that pays your charges. That money can't pay future charges, so your cover can end earlier.
When you tell your insurer you want to make a partial withdrawal, BNM requires the insurer to run a new check. If the withdrawal will make your cover weaker, the insurer must show you the result before the withdrawal happens. The request form also asks you to confirm that you understand what the withdrawal does to your cover. Don't confirm until you've seen the result and compared it with your latest annual statement.
If you take a premium holiday, which means pausing your premiums for a while, your insurer isn't required to run a check first. Insurance charges keep coming out of your fund during the break, and your insurer has to remind you which ones. It needs your written consent before it takes rider charges from your fund (investment-linked business document, paragraphs 14.11(a) and 16.7(b)).
When To Raise A Complaint, And Where
Start with your insurer's complaints unit, which BNM lists in its directory of complaints units. The claims and sales teams aren't the complaints unit. BNMLINK, BNM's complaints service, won't take a complaint that hasn't gone to the insurer's complaints unit first. Complain in writing, give your policy number, attach the statement or notice and keep the reference number you're given. BNM sets these deadlines for your insurer (complaints handling document, paragraphs 11.3 to 11.9). The final decision must be in writing.
| Stage | Deadline |
| Confirm it has received your complaint | By the next working day |
| Decision on a simple case | 5 working days |
| Decision on a complex case | 20 working days |
| Decision on a case that needs documents from another organisation, such as a medical report | Up to 30 working days |
| Decision when the documents still haven't arrived after 30 working days | Up to 60 working days |
A complaint about a charge rise can raise these points.
- The insurer didn't give the notice BNM requires.
- The insurer made the change on a date other than your policy anniversary.
- The insurer can't show you the clause that allows the increase.
The Financial Markets Ombudsman Service (FMOS) is a free, independent body that settles disputes. It handles insurance claim disputes up to RM250,000. You can file with FMOS within 6 months of your insurer's final written decision, or if your insurer hasn't replied within 60 days of your complaint.
FMOS's insurance work covers claims, and a charge rise isn't a claim. The table shows what else it will and won't take.
| Your complaint | Will FMOS take it? |
| A charge is too high | No. FMOS treats general pricing, fees and charges as business decisions |
| The insurer didn't tell you about a charge, or sold you the product unfairly or with wrong information | Yes. This is the exception |
| How a fund performed | Only if it was mis-sold or not explained |
| How a surrender value was worked out | No, unless the amount is a guaranteed payment written in your policy |
FMOS has taken a case about how an ILP was sold. The plan was sold through a bank. FMOS found for the bank because the customer couldn't prove the salesperson had misled him, and because he had signed the sales documents. So keep your product illustration, disclosure sheet and anything your agent sent you. Whether FMOS can take your case depends on the details, so call it on 03-2272 2811 before you file.
If FMOS can't take your dispute, BNM requires your insurer to point you to BNMLINK. You can also go there if your insurer hasn't replied within 14 days, or you're unhappy with its decision. BNMLINK can't take a case that's already with FMOS or a court. Gather the documents in our guide to filing with BNMLINK first. Then use the online complaint form or call 1-300-88-5465 between 9am and 5pm, Monday to Friday, except public holidays.
Frequently Asked Questions
What if my annual statement doesn't arrive?
Check your email and your insurer's app first. BNM lets insurers send information about the yearly check electronically. They have to deliver it to you directly and give you a paper copy if you ask. BNM requires the statement within two months after the end of the insurer's financial year. If it's still missing after that, ask for a copy in writing and give your policy number.
Does the yearly check include my riders?
Yes, for riders paid from your fund. Your insurer counts their charges when it runs the check. Your product illustration from when you bought the plan marks each rider as unit-deducting or premium-paying. A unit-deducting rider is paid from your fund. A premium-paying rider has its own premium.
Where can I check my fund between statements?
BNM requires your insurer to publish the latest unit price of each fund on its website every day, with a phone number for people without internet. Multiply the units you hold by the unit price to get the value of your fund today. Once a year, your insurer must also send a performance report for each fund you hold, within four months after the end of its financial year.
Does my plan have a no-lapse guarantee?
Some plans do. A no-lapse guarantee keeps your cover going for a set number of years even when your fund reaches zero.Allianz's EverLinkPlus, for example, defers its policy charges for the first 6 policy years so the policy won't lapse. This only holds if you pay every premium within 31 days of the due date and don't withdraw any units. BNM's investment-linked rules don't set out a no-lapse guarantee, so it depends on your insurer. Check your product disclosure sheet, the plan's summary document, for how many years it lasts and what ends it.
If my fund keeps falling, can I switch funds?
Many ILPs let you switch funds. Some insurers charge a fee after a set number of free switches each year. Allianz's EverLinkPlus, for example, gives 5 free switches a policy year and charges RM10 for each one after that. Your policy contract lists the fee. Your insurer uses the expected growth of the funds you hold when it runs the check. Switching can change the result of your next yearly check. A fund with higher expected growth can also lose more, so ask your insurer what the check would show before you switch.
