It depends on whether your old insurance meet your current needs. It seem outdated because of inflation. Insurance, especially medical insurance is best to be reviewed once every 5 years. The inflation for medical is as high as 12% per annum.

Reviewed here does not necessary mean that you need to cancel the old plan. If possible, I would advise against cancelling the old plan and replace it with a new plan.

Instead, either do an upgrade if the plan is able to be upgraded PROVIDED that the TERMS and condtions of the plan do not change. A 10 year plan means that it has surpassed the waiting period of 120 days and your agent no longer gets his commission. Bad for the agent, but good for you as the client.

Also, the EXCLUSIONs are way lesser in older plans. For example older policies has 12-13 exclusions whereas new policy has over 20 exclusions. Exclusions are things that are not covered.

A 10 year old policy also mean that whatever premium that you are paying will go towards contributing to your cash value (if the policy is able to accumulate cash value). The agent commission is only for 6 years. If you buy a new plan, all these will be starting from scratch.

It is never beneficial to the client to cancel an old plan and start a new one. If your needs has changed, either do a top up or buy a new plan on top of the old one.

Agents that simply ask you to cancel your old plan are only doing so to earn commission and not helping you.

Example, if currently you are paying RM200 premium on your old plan. If the agent cancels the old plan and starts a new plan for RM300 he or she will earn RM300 in commission.

However if its only upgrading, it means he or she will only get Rm100 in commission.

This post has been edited by roystevenung: Aug 13 2013, 08:48 AM

By the way, what is the coverage?

Do check out my blog if you want to learn about insurance.

Since when insurance gives anyone high amount of cash value?

Insurance is about buying PROTECTION, not for investment. That was my purpose of asking TS whether what he had bought suit his needs.

For GE do ask ExpZero

^ One question ExpZero, does what he have include a medical card? ^.^

After all, we do not want to use all those savings to pay for the medical fees, no?