The reason is whenever a CI claim is being submitted, the insurer will have to verify the claim as the CI claim is not as straight forward (and evident) as compared to the Accidental Death/Total Disability cases.

Pass records of pre-existing illness (especially if the policy is still new and below the 2 year incontestability period) needs to be check prior approval for the said claim.

1. Whenever you join a company, normally the company will also provide you with medical coverage.

Even though it is limited (say RM30K/year?), you can use that to your advantage by adding it to your own personal insurance. This means if you were to get RM100K/yr and coupled with your company medical, you will have RM130K annual limit.

Whenever there is a need for a claim, always try to claim from your company insurance before touching your personal insurance.

For example, if the bill is RM50K, you may claim RM30K from your company insurance, PAY CASH RM20K as settlement to the hospital (during checkout) and file a claim for RM20K to your personal insurance.

The above will save you premium for buying too much insurance, especially when you had just started working. You should not spend too much on insurance since by doing so, you may have very little for investment to grow your money.

Investment here refers to buying property, stocks, mutual funds et cetra, and NOT Investment linked Plans (ILP).

2. As you may had already know, the Early Critical Illness (ECI) like Carcinoma In-Situ of Cancer is not payable in the normal 36 Critical Illness.

Hence these days, most insurer introduces the ECI to bridge this gap. Personal opinion, it is more of a gimmick by the insurer to generate more revenue. The reason why I say this is that whenever a person is diagnosed with ECI, the chances of recovery is high.

However if a person is diagnosed with a 36 Critical Illness, the chances of recovery will be slim (though not impossible from early detection).

A person wealth is from his/her health. Your ability to work to generate an income is your greatest asset. An ECI, mostly the said person will recover after 3 months and he/she is able to get back to work.

However, if a person is diagnosed with a 36 CI, most of the time, the livelihood to be able to generate an income becomes highly questionable. This is also why the insurer will only waive the insurance premium if the client is diagnosed with a 36 CI and not ECI.

This is why I say it is better to concentrate on 36 CI, rather than wasting the premium on ECI.

Of course it does not stop you from buying ECI if you want to be paid (say 30% or 50% of the sum insured of the ECI).

3. Life Insurance is only required when you have responsibility (eg, kids, house, for parents, cover for debts etc). You may keep this at minimum (or at least enough to cover for the funeral expenses - touch wood).

You may swing the coverage towards 36 CI and/or Accidents.

ILP is more flexible that if you want to upgrade the BSA later, you may do so whereas for term insurance, you will need to add on another policy. There is no right or wrong.

--
Lastly, WORK ON YOUR OWN BUDGET and NOT THE AGENT'S BUDGET.

Rule of the thumb, do not spend more than 10% of your salary on insurance.

This post has been edited by roystevenung: Nov 22 2014, 05:57 PM

Yes, see below:-

- Pruflexi med is either Rm300 deductible (per same disability) or zero deductible (full claim).

- Pruhealth there is option of:-
1) deductible Rm3k or Rm10k

Or

2) co-insurance inpatient min Rm300 or 10%, max Rm1k. Outpatient 10%, max Rm2k

Outpatient can also be used for surgical procedure (not necessarily for accidental cases only) for example cataract surgery whereby the patient goes home the same day.

Chemotherapy for cancer & Kidney dialysis is to be done as an outpatient and Guarantee Letter will not be issued even if the Doctor put in a requisition for it.

HTH

I had PMed him yesterday. Thanks boss :-)

Not that i know of, but i can start the quote system and let your fingers run loose if you wanna

Both are ILP

Stick to the existing GE plan. It is never beneficial to the policy holder to cancel an insurance plan & get a new one.

Instead of looking at insurance, concentrate on your wedding expenses, saving for baby & how to improve your income.

Geting married & having a baby these days are ridiculously expensive :lol

Need to look at the type of policy and most importantly, the reason/purpose he bought it for.

Suggest that you+dad to sit down with the insurance agent to summarize the policy in details and let your dad to determine what would be the next course of action.

When you travel, you can add on terrorism coverage to the travel insurance (with extra premium of course).

The basic travel insurance does not cover terrorism.

/Syukur Malaysia masih aman...

This post has been edited by roystevenung: Dec 5 2014, 10:58 PM

Replied in PM.

http://www.thestar.com.my/News/Nation/2014...costs-may-rise/

Its listed in the medical brochure as well. Pick up any brochure, it is listed, mostly at the last few pages.

However, as you may have already know it is not only the cost of insurance that matters.

This post has been edited by roystevenung: Dec 15 2014, 10:31 PM

What has been done cannot be undone

On a more serious note, it is not advisable to change just because of the agent. It is never beneficial to the client to simply change the insurance policy, unless the client was being misled to purchase it in the first place.

Your insurance contract is with the insurance company, not the agent. Remember, even if you get the best agent there is, he/she is still human. If he/she stands in front of a moving lorry, its also GG.com

You may ask the insurer to appoint another agent if you feel that your current agent is not up to par in terms of servicing.

Sorry, thought you were referring to the 'medical' and not 36 CI

First off, what kind of sports do you play? Extreme sports are not covered under the normal medical card. However if its normal sports like soccer/badminton etc, then it should not be any issue.

If you are referring to 3rd party specialists as "Dr. Anwar Bone Specialist", then yes - you may claim it under Accidental Medical Reimbursement (AMR) which is an added on rider. Reimbursement means that you need to pay the bill & claim from the insurer later.

Do note that the 3rd party specialists must be a registered Doctor, not bomoh/sinseh.

Alternatively, if there is a surgery being performed, you may claim it under the day surgery (which is also based on reimbursement basis).

If the injury is more serious and there is a need for x-ray or MRI, then it is recommended that you get admitted as most of the surgery costs may easily be RM5K. If you get admitted, the insurer will issue a Guarantee Letter to the hospital.

Upon discharge, you may also need to undergo physio, which is also covered under your medical card (based on reimbursement basis).

First off, the ILP insurance policy does not generate any interest. If we were to declare interest, then the policy is subjected to tax. The word interest in an ILP is totally misleading.

Depending on the premium allocation, the premiums paid will buy the policy holder units, which in turn will determine the cash value based on the NAV of the funds.

There are few factors that may determine whether there is sufficient cash value in order to pay off the insurance charges, namely:-

1. Age/gender of the person (the insurance charges will increase as we get older, especially > age 60).

2. The riders being attached to the policy, for example, if the policy is being attached with a life/Critical illness, medical rider, accident rider etc. Let us not forget that if there is a medical card being attached to the policy, the medical card needs to be maintain until age 80/90/100.

3. Funds performance. For example, if the funds invested suddenly drops due to a sudden market crash, the accumulated cash value will also be affected and if the cash value is insufficient to cover the insurance charges, the attached rider (partial lapse) or even the policy may lapse.

4. Other factors, for example GST.

Hence when the premium payment is stop the policy is under risk of being lapse anytime, at the next billing cycle.

Should the accumulated cash value is not sufficient to cover the insurance charges, some of the riders may go into 'partial lapse' and should a claim arises, the insurer is not obligated to honor the claim.

A letter / notice will be sent to the policy holder notifying him/her of the insufficient funds/non-payment.

He/she may be required to pay more than the monthly premium, known as 'top up' should the insurance charges at older age is not able to be offset by the accumulated cash value+premium paid.

In the above example, the policy may not lapse as the amount of RM19K is allocated for buying units. As long as the accumulated cash values is able to pay off the insurance charges of RM1K (of which it may increase along the years), the policy will not lapse, even without paying the premium.

Just make sure that he make an instruction to the insurance company to use the accumulated cash value to pay for the insurance charges (of Rm1K).

Otherwise, the policy may also lapse come next billing cycle even if the policy has sufficient cash values to cover the insurance charges.

For any changes to the policy, the policy holder will need to sign on it, hence its best he go directly to the office.

May I ask why would anyone pay RM19K upfront when the insurance charges is only RM1K/annum?

Secondly, as most funds are relative to how KLCI performs, dumping in a lump sum when the market is high, it only means that your friend is buying lesser units?

If he had dump in during the market is low, then it makes sense.

As agents we can't promise just like that because the insurance charges is not guaranteed.

Example, this year most of the insurer had increase the cost of insurance due to MMA allows increase of up to 14%-18%

http://www.thestar.com.my/News/Nation/2014...ees-acceptable/

Since he is going to the office, he might as well find out what is the current cash value and whether it has made the 5% pa?

The 14 days cooling off period is only applicable for new policy. If the 15% of your income seems taxing on you, you may talk to the AIA agent to reduce where possible.

There is no point to take up another (which may appear to be cheaper) as you had paid the AIA 2 years. Since you had paid 2 years, it means you had paid the agent 2 years of commission and taking up a new plan starts the commission all over.

Not to mention that there is a Waiting Period of up to 120 days for Specified Illness.

I don't see the point of having duplicate AIA, one traditional & one savings.

And for crying out loud, insurance is NEVER for its savings element. Don't believe? Call up AIA and ask them for the savings, how much do you have in your account now?