You are absolutely right. Cos I approach these high net worth individuals before. They have their own arrangements

It got the above information from none other than Yap Ming Hui himself. Normal agents who approach UHNWI will get the LOL treatment.

Xuzen

Speaking again about UHNWI again, I know now how they manage their wealth. I have no way to move up to their net-worth level in my life time.

But, I can pass the knowledge to my off-spring and teach them how to manage the wealth and I guess by their children's time (2 generations later), my off-spring's off-spring will hopefully be UHNWI.

Xuzen

It is because you only think of insurance is all about money pay out, and you think because they are rich they do not care to throw away money?

Some countries have inheritance tax, whatever you leave for your family will be taken a chunk off by the government. Insurance is a way to bypass that.

Insurance pay out can by pass your creditors and straight to your family. It is an immediate fund that your family can access while waiting for the court to grant a probate to distribute your estate. An immediate fund that your family can use to continue your business when your assets are frozen.

Have you think of how lengthy the court case will be if the children start contesting the Will? Rich people will often utilizing a trust company to manage the estate, assigning away their estate, setting up trust fund... Do you think those trust company / lawyer do it for free?

2 million estate (probably a house and merc in KL) using the Amanahraya service fee rate, without a Will 2% that is 40,000, with a Will 22,750 and every 5K for a million estate thereafter. If you setup a trust fund, a rate will be charged annually. Using a lawyer probably charge you even more. You would think a clever rich man will use the insurance to offset the charges or just throw away the money?

This scenario could only occur if the deceased didn't has a succession plan. If he didn't has succession plan, doubt he has much net worth.


Perhaps you could enlighten us to pay for 1 million inheritance tax, how much is the yearly insurance premium for age 55, 60, 65, 70 and 75 years old?

By holding shares, etc off shore, yearly cost is much cheaper than you stated.


This post has been edited by icemanfx: Sep 17 2013, 11:54 PM

Edit: Succession plan? What type of succession plan? Does you succession plan including your partner? Being a married couple you would think you spend most of the time to do things together like travelling, holiday, eating... and the chances that both gone together is not rare you know.


Since you asked I might as well do some searching for you. Hong Kong abolished the inheritance tax on 2006. UK inheritance tax is 40% after 325,000 pounds, and US is 40% after 5.25mil dollars.
Lucky for us Malaysia do not have inheritance tax.

But to answer your question, for a 1 million sum assured, start at age 30, rm10440 yearly or rm908 monthly fixed till 100 years old, with guaranteed cash value (@90=812K, @100=1mil). Nothing fancy, no dividends blah blah cheap and cheerful with guaranteed cash back.

Start at age 55, rm33650 yearly or rm2928 monthly
Start at age 60, rm44900 yearly or rm3906 monthly
Start at age 20, rm7300 yearly or rm635 monthly

Advertising time : Many people like this for... MLTA tada!! Using the 30 years old as example, rm908 per month till age 60 years old than surrender and take back the guaranteed 316K to settle the loan.



This post has been edited by KelvBlue: Sep 18 2013, 01:21 AM

Most people would concern about inheritance tax when they are reaching retiring age or retired.

If the person could live beyond 100 y.o.;
and start at age 55, he would be paying 45 year x $33,650= $1,514,250
and start at age 60, total premium paid would be 40 year x $44,900= $1,796,000
for $1,000,000 pay out?

If the person lived until 91 y.o;
and start at age 55, he would be paying 35 year x $33,650= $1,177,750
and start at age 60, total premium paid would be 30 year x $44,900= $1,347,000
for $812,000 pay out?

From 30 to 60 y.o, total premium paid would be 30 x $10,440= $313,200

I stand to be corrected.

This post has been edited by icemanfx: Sep 18 2013, 01:46 AM

I know you are going to do that...

Sure, twist it to your liking and completely forgo the 45 years of protection, conveniently skip off the benefits of starting younger and concentrate on the high risk later years. This is not an participating on investment plan, it is a term plan with a slight twist with cash value, a slight twist that can also protect up to 100 years old, and let those who wanted to explore the mechanism of insurance be able to do so. Most term plan only covers till 70 and without pay out, may be you should use that as your judging stone?

Start at age 55, he would be paying 45 year x $33,650= $1,514,250 - $1,000,000 = $514,250/45 = $11,427 per year or $952 per month, for 1million how is that?

Or may be you want a term life? start from 55=23k per year, 60=28k per year, protect up to 70 years old no return. Better?

Or to play your game, start at age 55 pay 1 year = $33,650, and jump off the cliff, pay out 1million, Return = 2971%

You know what, you do not consider inheritance tax when you are reaching retiring age, because you do not pay for the inheritance tax. The Inland Revenue will calculate what they want to take and will join the creditors to chop it off from your estate first. Also Malaysia do not have inheritance tax.

Again 30 to 60 years old, conveniently forgo the 1mil protection. Since you are so good at calculation how about you calculate the MRTA that the bank charge you in a lump sum?

This post has been edited by KelvBlue: Sep 18 2013, 03:06 AM

As per the TS title, "why I hate insurance agent", the above really stand out as the reason. I'd fark that agent who comes on so arrogantly.

Does insurance company pays the agent high commission to talk like this? Better still, will the insurance company even pay the beneficiary the insured amount for suicide cases?

My friend committed suicide in 1997, and his wife only got nothing but nonsense from insurance company.

May I ask, does the suicide occur within 1st year of the policy inception? If yes, ALL insurers won't pay, it's written there in the policy.

I'm not agent, I'm agent public enemy no. 1

Normally I do not enter into debate with clients, if unfortunately came across those worse one will just smile and move on. In this forum I tend to enjoy a bit of the debating. If you read up a bit I started off just to offer some points of thoughts. I apologize if the last snarky part offended you

To answer your question, in life policy there is a suicide clause of exclusion within one year starting from the application date, and is not under the influence of drug or alcohol. On the other hand, PA does not include suicide.

wait wait wait, death due to alcohol is not claimable??? I don't see that in my policy

Did your agent bother to inform you? Or he simply said no problem lar, claim is easy.

For term life; premium is fix through out the tenure? What are the exclusion?

All traditional plans have fixed/levelled premium. It spread the higher cost at old age to the earlier years and that is why it is cheaper when purchased at earlier age. Standalone Medical Card though has premium that goes up with age.

Yes, term life premium is fixed through out the tenure. Nothing fancy, the cheapest kind of insurance. Just cover Life/TPD (TPD covers till 65). Normally term life cover till age 70, some company may go a bit higher age. Basic general insurance exclusion like no drugs, no illegal activities etc etc. Have option to add in riders like CI, PA...

This post has been edited by KelvBlue: Sep 18 2013, 11:25 PM

What about pre-existing medical condition?

Can we conclude high net worth individuals don't need insurance and insurance is for insecure people?

High net worth people need insurance, but their reason for buying may be different from middle income demographic.

Insurance is not for insecure people, it is for people to manage their risk.

Xuzen

what to do?
they also want earn money want eat
they job are searching customer

Each time insurance agent call, will say I'm dying from Stage 4 liver cancer and they will apologize and hang up. Some agents especially women will feel your pain and sadness.