PRUmed pays the benefits below in the event of hospitalisation due to illness or injury before age 70. One unit of PRUmed pays :
1. RM50 per day (up to 100 days in a year) for hospital confinement.
2. RM100 per day (up to 30 days in a year) while confined to an intensive care unit, and
3. a lump sum up to RM2,500 (up to RM12,500 in a year) for a surgical procedure, depending on its severity rating.

PRUhealth is subjected to 10% co-insurance (min RM300, max RM1K, max RM2K for outpatient) hence most agents would add hospital income to help reduce the burden of the co-insurance.

Even though the plan is Investment Linked Policy (ILP) and generates cash value over time it is more towards protection.

Generally always bear in mind that for insurance you buy it for its protection value rather than its investment value. It does generate cash value over time, preferably over a period of 20 years to see the cash value grows.

Always remember, that cash values are _not_ meant to be withdrawn (even though you are able to in times of need). Your medical card term is for another 45 years (until age 70). Assuming that you retire at age 55 (no income), that's easily another 15 years of not paying the premium. Also, the insurance charge will go up by age irrespective of when you get it.

Excerpt from our proposal:

WARNING
YOUR INSURANCE CHARGES WILL INCREASE AS YOU GET OLDER. IN THE LATER YEARS, IT IS POSSIBLE THAT THE
ACCUMULATED FUND VALUE IS NOT ENOUGH TO PAY FOR YOUR INSURANCE CHARGES DUE TO POOR INVESTMENT RETURNS,
WHICH WILL RESULT IN YOUR POLICY BEING CANCELLED. YOU MAY NEED TO INCREASE YOUR PREMIUMS OR REDUCE THE LEVEL
OF INSURANCE PROTECTION, IF YOU WANT TO MAINTAIN YOUR POLICY.

PMM is the rider that is attached to conventional policy. PRUhealth & PMM cannot co-exist in the same policy.

But yes you may cancel PRUmed but do note that ICU cases are generally very expensive. I had spoken to someone who had paid in cash RM90k due to stroke for 25 days in ICU. She don't hv a medical card. The EPF was utilised something she had saved for 35 uears

This post has been edited by roystevenung: Sep 6 2012, 12:54 PM

If you dont mind my asking why Rm100k cover for life / critical illness?

Rm100k nowadays doesnt seem much if we are
bedridden & not able to generate an income.

Whether or not you need Rm100k cover is much dependent on your lifestyle and expenses associated to that lifestyle.

Should your monthly expenses is like Rm2k/mth now do expect it to increase should we are down with a CI. Insurance is for protection. You decide how much you want the insurer to compensate vs the premium you paid should touchwood happens.

Insurance is all about PROTECTION, and it is NEVER meant for investments, even if the plan is called Investment Linked Policy (ILP).

When you buy insurance, you are buying the associated coverage based on the premium that you paid.

Like your car insurance, you would be expected to pay the premium for as long as you want to maintain the policy. Since insurance charges goes up by age, the cash values accumulated in your ILP or any plans that accumulates cash values, will eventually be used to pay off the variance of the insurance charges at older age (> 65).

If your agent is still around, you may call him/her up to revisit the plan to understand what you had bought.

Alternatively, you may scan the coverage details along with the medical plan (if any) and email it to me. Before you email, you may 'blank' out information that is not required, like your name or IC for privacy.