My agent help me to review my policy and say coverage too low. I am now consider to buy a new plan or upgrade existing plan.

What will make a different between upgrade new plan and buy a new plan?

Currently I have LIFE /TPD 50K and CIBR 50K

upgrade to LIFE/TPD 150K and CIBR 150K + Medical Card

or buy new LIFE/TPD 100K and CIBR 100K + Medical card.

Which one is better?

a. In term of saving on Insurance cost?
b. In term of saving on distribution cost?
c. In term of Premium?
d. other benefit/disadvantage?

Assume if I buy new plan from some company and same product but maybe add rider.

Thanks.
Chee

upgrade is better

1. What will make a different between upgrade new plan and buy a new plan?
The question here is that whether your policy is able to be upgraded.

For term policies, you'll need to buy another and incur additional policy cost (~RM60 per year).

If your plan is an Investment Linked Policy (ILP), then it is able to be upgraded. It also depends on how long your policy had been in-force. If your policy has been in force for over 6 years, this means that the premium that you pay, it is going 100% into buying you units to generate cash values faster.

Should you were to cancel and buy into a new plan, your 'allocation rate' will start all over, 40% from year 1 (depending on the insurance company). For example, if your current plan is paying RM 100 per month and new policy costs RM150. If it was an upgrade from RM100 to RM150, your allocation rate is RM100*100%+RM50*40% for the 1st year. If you get a new policy, then the allocation rate is RM150*40%.

Secondly if it was an upgrade, your agent will only earn RM50 commission rate. However if it was a new policy, your agent will earn RM150 commission rate.

For Prudential, if you are being offered for the upgrade, the terms and conditions which are superior in the older policy will be carried forward into the upgraded policy. For example, older policies has less than 12 Exclusions, whilst newer policies are with over 20 exclusions. Exclusions are things that are not covered.

Both solutions are on the condition that you are still healthy at the time of upgrade, or exclusion/loading may apply to the upgraded policy. In this case, it would be best to get a new policy than to have your policy added with exclusion.

Secondly, whenever you buy a new policy or reinstatement of a lapse policy, your waiting period will start over, minimum 30 days for common ailment and 60 days for cancer, and up to 120 days for Specified Illness.

For any upgrade, normally the insurer would only impose the waiting period on the upgraded portion.

2. Currently I have LIFE /TPD 50K and CIBR 50K


Have you asked your agent why he consider RM50K life/TPD/CI low? If you don't mind my asking, how old are you? Also are you married with dependents? Why RM100K Life/TPD/CI cover?

a. In term of saving on Insurance cost?
Upgrade into the same plan is always preferred for the client, but it is bad for the agent as explained above.

b. In term of saving on distribution cost?
In circumstances whereby an upgrade is not an option (due to health condition has changed over the years), getting another policy on top of the existing one is better. The health condition will only be an exclusion on the new policy.

However, as you may had already know, adding another policy means another (RM60pa) policy charge.

c. In term of Premium?
Insurance is a business of risk transference, and the premiums/insurance charges will always go up. There is no free lunch in insurance. Anything that sounds too good, there is always a catch.

d. other benefit/disadvantage?
As explained above.

May I know which insurance company is your existing policy? Feel free to PM me if its inconvenient to be mentioned here.

This post has been edited by roystevenung: Mar 29 2014, 09:46 AM

Hi Fussychee,

Great replies below, very informative from Roy. Guess your policy 'CiBR term used for critical illness' is for Great Eastern. If it's bought many years ago chances are it's a Traditional plan, and as per Roy cannot be upgraded. Always make your insurance buying decisions based on 'long-term'. Nothing is free or too cheap, without a cost. A lot of ppl buy too many policies with small amount of premiums each (until they are afraid of 'agents'), but too many policies do not mean comprehensive or adequate. Buy according to your budget, but ensure it's comprehensive meaning from life down to PA minor accident etc etc.

Regards

Thanks for all for the reply.
My policy only 3 years. ILP, so it is upgradable.
My agent judge coverage might not enough based on my annual income and family commitment.
And there are no medical card.
He already quote me a comprehensive (include life, tpd, mc,36ci, waiver). But when I look on basic plan, it is same as what I have with other agent. Only different is the rider and sum assured.
That is the reason I am wonder should I go for new plan or upgrade my existing.
But if allocation will be same for top up premium for upgrade and new. Then, I should opt for new plan.
There shouldn't be problem to claim both policy for life/tpd/36ci/waiver/pa.

I have no plan to cancel my existing policy even I go for new plan.

This post has been edited by fussychee: Mar 29 2014, 01:14 PM

^ then it would be better to just upgrade into the ILP plan. No point getting another ILP plan.

Dear agent here,

Could you give me some general idea of comparison between this plan;

http://www.acegroup.com/my-en/for-individu...-insurance.aspx

and normal medical card. As far as I see, its coverage is more or less the same.

Not sure how to compare since there is no brochure on the site. Do ypu have them? Or at least a full quotation and perhaps the policy wording?

Dear Koinibler,

That's from a General Insurance company.

The "More or Less" the same Could mean a lot when a detailed comparison is done. For example, very important factors to consider besides the low premium offered (and there is a reason why):

1) yearly renewal? Guaranteed renewability? Withdrawal of portfolio?
2) cashless and non-cashless med card ( this company offers this option). If someone opt for non cashless (pay first reimburse later) make sure he/she has the funds available to pay first if it's a major surgery ie RM30k. Then the hospital will also require a hefty deposit because you have a non-cashless card- you are fully liable for the full payment. A non cashless card may be good enough for us, but that does not guarantee the hospital that we can afford to pay them right?
3) post hospitalization number of days covered under the plan? Some companies offer only up to 60 days post admission. Meaning follow up consultations etc can be done up to 60 days after discharge. After this period, bear your own cost for consultations and medication, follow up surgery etc even if the card has high yearly limit.
4) other sub-limits imposed. Do not look at the yearly or lifetime limit only. Some med plans have a sub-limit for cancer treatment, organ transplant and kidney dialysis. So the lifetime limit/ annual limit may be huge, "but can see only, cannot touch". some med cards even have the clause that they will only bear the cost of personal physician's visit up to 2 twice a day.

..And many more..

I would suggest you looking up at the full breakdown of benefits, terms and conditions of the medical plan you are considering. Than only a fair comparison can be done between what other companies offer.

Feel free to pm/ contact me should you need any further assistance.

Regards

Hey bro,

Not sure you are in which plan, however, the best among the Crystal Mediplus, Crystal Sihat and Crystal Meditop up is Crystal Sihat.


I can't really quote the above medical card vs a normal medical card, as there are multiple different cards in market. Maybe it will be fair to compare it with Smart Premier Health from Great Eastern.

Head to head comparison will be Great Eastern Smart Premier Health vs Ace Jerneh Crystal Sihat.
1. No Co-Insurance vs 20% co-insurance with no capping if over room&board.
2. No claim discount -> 25% discount. vs no non-claim discount
3. Automatic 10% increase in Room & Board in every 3 years vs Room&Board stay stagnant
4. 10% increase in annual limit of medical card vs annual limit stay stagnant
5. Lifetime medical limit with 20 times of the annual limit vs lifetime limit is annual limit
6. Critical Surgery Recovery Benefit of a lump sum payment of RM20,000 vs no Critical Surgery Recovery Benefit
7. Post-Hospitalisation Treatment as long as within 180 days after hospital discharge vs 60 days Post hospitalization.
8. In hospital physician visits of twice per day vs once per day
9. Can stay in hospital up to 180 days per policy year vs 150 days per year.
10. Can stay in Intensive Care Unit (ICU) for 180 days per policy year vs 75 days.
11. Pre hospitalization coverage of 60 days, same for both
12. Huge different between annual limit, depends on the type of plan you bought.
13. Hude different in cancer and dialysis, GE is according to annual limit and Ace Jerneh is capping at monthly limit.
13. Both covered Government Tax
14. Both covered Medical Report Fees

Attached the Smart Premier Health brochure for your perusal.
https://dl.dropboxusercontent.com/u/9609565...g%20Broc_V1.pdf

Btw, I think you should have received a RM80 voucher from Great Eastern

anyone looking for a cheaper motor/car insurance can pm me

Thank you for input.

@roy
sorry, no brochure or equivalent.
just got another telemarketing promotion.

@Chris
yes, guaranteed renewal is one important factor that already been emphasized by several agent here. learn this from this forum.

@ExpZero
thank you for elaborate comparison. really hard to comprehended if not an agent ourself. also wonder why RM80 voucher.

I'd say almost all the life (non general) insurance company are providing guaranteed renewable ILP medical card. If you are getting from life insurance company, you are safe from the clause.

Just checked my system, promotional voucher sent to your wife by Great Eastern You will receive it by 2nd week of April I think.

The attached brochure is purely a Medical and Life insurance coverage? Is there any plans which includes investment too.. by the way if we are taking the plan at young age, will the per-annum charges increases as we grow old? Sorry for the noob question..

@ExpZero..
wah.... thank you thank you
will wait for it.

AIA really a big fat liar after taking over ING. Yesterday, received my year statement with additional announcement saying "2013 BONUS ADJUSTMENT EXERCISE........ reducing cash dividend and/or bonus rate by 15% - 20% for 2013 for ING policies issued before 2005".....

I thought a company is able to take over other company must strive and do better but some how the result turn sour .



When the time i brought this policy all the guarantees and sweet talk went into drain became rubbish.....

No wonder AIA ranking dropping event lower after merger and using client money to increase their profit by not paying the client....

If not wrong they will said business grow and better than other insurance company by sucking client money...

WTF you AIA.....

We bought your insurance for our dad last year and after paying for a year, he was diagnosed with kidney failure and require hospitalization and fistula. We had to pay for everything first and when we asked your agent he told us we only need to wait for 2-3 weeks for the claim to come out but now he's telling us your company needs a MINIMUM 3 months to investigate before deciding if you will approve the claim or not! My question is, why do you need to investigate when initially your company already approved his policy after reviewing his body check up report which showed that he was healthy without any medical history? IF in the first place, you decided his condition was not fit to purchase the policy you wouldn't have approved it, right? Now we have to pay for everything ourselves while we wait for you to "investigate" for AT LEAST 3 months while we continue to bear for our father's dialysis treatment fee. We feel so cheated by your company!

Prudential?

So this time kena Allianz.

As I mentioned in previous thread, I won't mislead my client to say that the GL will surely approve for the first year, I knew there is some agent do "promise" client in such a way that "my company will approve first and investigate later". If company already paid, what's the point of investigate?

I'll still stress that all the insurance company in Malaysia will not guaranteed your GL approval for the first year of policy inforce, if the agent say so, please find another honest agent. However, if my client is clean and honest, I can guaranteed that I will be able to help the client to claim the money with no exceptional after the waiting period.

Friend sorry for what you have go through. Insurance companies spend millions of advertising fee every year, does itt make sense not to honor claim to spoil their reputation?

I suggest you need to look through the doctor report, which is the most important document for claim. I suppose what doctor report lead to the investigation. My team has a case doctor comment non cancer to a 3rd stage patient, yet we fight for client and he gets all claims back.

Make sure you get your agent, or go direct to the company to seek for clarification.

I'm sure there's room for discussion if the application is genuine. Else the last resort is bring up to the financial bureau.



cheers.