Please keep your comments non personal, thank you.

I did ask why or what were you having problems with your Prudential in order for me to help and I am offering this service again.

There is not much service involved for life insurance policy, unless erhmn touchwood.

But for medical or claims, you can contact your agent. Alternatively, if you are not happy with her service, you may transfer to another agent in Prudential.

The new agent will not earn any commission, but if the agent sees it as long term business, then he or she will provide the service. Agents gets up to six years of commission. Transferring the case to another agent does not obligate you to buy from the new servicing agent.

It is definitely not beneficial to the client to simply change plan, especially the medical as the medical coverage comes with waiting period and most important, it can only be bought when we are healthy.

This is a service industry and trust is something that needs to be earned, not expected.

If I am the sucky agent as claimed by some forumner, why am I promoting this in my blog?
http://www.insurancepenang.blogspot.com/20...urance-101.html

Noted

You can opt to change agent if he or she is not doing you justice.

For the above services you mention I can email you the forms, fill up, sign and rescan via email. Nothing to it. Unless you change them every month?

Even on claims, you may call me if you need help. If you are at KL I will even bear the courier costs.

Of course its agent job to help. Houdini act does not help in future business

At least she dont talk nonsense that you will get exhorbitant returns from the plan. Insurance is for protection, never for investments.

There are life cover, critical illness cover, medical cover, all meant for protection.

You buy the insurance cover for yourself rather than for the agent. Agents are also human, silap haribulan may end up standing in front of a lorry

The coverage is by the insurance company and the claims are being paid by the insurer, not the agent. In the event of a claim, you can call the customer service if the servicing agent is no longer in the business.

Where are you at? If Penang, I bring the form to you. If other states, I can send to you via post express, you fill up and pos it at yellow box at pos office during weekends at Tesco.

I dont even have to be your agent to do so.

I had shared my view on this in my blog. Berapa kali kena pesan? Insurance is NOT for investment but for PROTECTION!

If you cant see my sig, its at www.insurancepenang.blogspot.com

Savings plan in insurance comes with insurance charges, commission, admin charges, fund charges,. For an endownment to work, it normally takes at least 20 years to even break due to these charges.

Heck, if you mati2 still mau believe the CONsultant let me tell you lar, even a apek fruit seller also know if today he buy an apple that cost Rm1, the next day he sells it for Rm2.00 if he potong2 the apple. 100% profit over night, dont have to wait 20 donkey years to break even!

Which is why even some Prudential agents here hates me

Its all written in the proposal form and policy document, especially on the insurance charges and agents who is transparent will reveal these to you. Not many people are aware of the insurance charges increasing by age.

As for the term, Prudential dont have pure term (every 5 years go up), but we have a level term whereby the premium is precalculated throughout the entire term. If client want term, I give this, but explain the above.

By talking to client on what they want from their insurance we can propose even non par policy. No one is forcing you to buy ILP.

Yup, thats how people do sales to attract customers. But that doesnt mean all agents does that.

Insurance policy is not really difficult to read. The secret to read the policy document is to read in entirely and watch out for the ANDs/ORs.

But yeah, I do agree, layman will find it difficult to read, same goes to SnP. It is written not to be read by layman, but lawyers and law makers.

If your parent had succeeded to use insurance as child education, then why is it the child must take loan from PTPTN?

Perhaps if the plan is as good as you claim, able to give 5.5% (per annum), why dont you share the plan for the people here to calculate?

nevermind.

Irrespective of whether the plan is whole life, term, ILP or whatever name they call it, whenever there is a word insurance it means "to insure", ie to provide financial protection, should there a need to.

In order for the insurer to provide coverage to the policy holder, the premiums paid will be used to offset the insurance charges. Insurance comes with insurance charges, fund management charges (if ILP), policy charge, admin charges, and not forgetting the agent commission (for 6 years).

Insurance as you may know is a business of risk transference, the more risk that are being transferred to the insurer the higher the insurance charges it will be. As we grow older, the insurance charges will be higher because the likelihood of a claim will be higher.

This is also the reason why insurance charges may costs tripple or even quadraple when we are age above 60 as compared to when we are in our 30s.

Yes as some poster had said, listening to the needs of the client and look at their affordability is vital as there is no point to get a policy and lapse it prematurely.

Giving a baby Rm1 million cover is total nonsense as the baby has no economic worth, nor is the baby is responsible to us adults. Unless of course you want to earn money from the insurance money by murdering the baby?

Anyway, it is rather impossible to get a baby covered for Rm1m, as most insurer will reject it as there is no justification as explained above. Also not forgetting that Juvenile lien applies for new born babies whereby for the 1st year, only 20% of the sum insured is payable.

When it comes to the so call savings plans, basically there are two types, endownment and ILP. ILP is subjected to investment risk as mentioned clearly in the quotation.

Whenever an agent does the savings plan in ILP, BUT allocates the premium MORE towards PROTECTION (ie buying high cover), it means higher insurance charges will be used based on the given premium.

This means there will be lesser premium will be allocated to buy you units, and that defeats the purpose of of the so call savings plans. Why does an agent swing your premium more towards insurance and not savings you may ask? It is because for for the investment portion, 95% of the premium is allocated to buy you units.

With such a high allocation, agent commission will be less, 3% to be exact.

The first 7 years whenever starting a policy are mostly allocated to those charges mentioned above. The first year allocated premium to buy units is 40% and gradually increase till 100% on the 7th years onwards. Look at the brochure or full quotation on these allocation rates

The allocation rate for plans may vary depending on the type of product. The higher the allocation rate, the better for the client.

However the charges still exists, hence it will take longer time in order for the client to even see the breakeven.

Having said that, even if it the premium is directed to investment, there were significant market crashed in 97, 2008. That means in between these years in fact if we are purposely buying funds when the market is on the high, we are in fact buying lesser units.

This is when agents will then talk about dollar cost averaging to make you more confuse.

This post has been edited by roystevenung: Aug 31 2013, 12:12 AM

I don't see any benefit of name calling in this thread.

Err...

Popcorn time

If really there is such a thing such as short term high return everyone wont even need insurance cos they practically could afford to self insure.

It had been discussed before, but not sure how to find it in Lyn.. perhaps you can help?

Which is why it is always a good idea to let the beneficiary know where you keep the policy. At least let them know that they are the beneficiary.

No 2 is invalid. .. you dont have to worry. People always know how to get money if they know they are the beneficiary.