If Prudential issued GL, policyholder discharge after 2 days, Prudential made the payment to hospital. Prudential continue with the investigation 1-2months and found out to be pre-existing non-disclosure, how do Prudential request the policyholder to return the large sum of medical bill back to Prudential?

If there is no payment from Prudential to hospital during the investigation period of nearly 2months
1)Do the policyholder allowed to discharge within the investigation period of 2 months? example a week after hospitalize or they have to stay in hospital for 2 months while waiting for the investigation result?
2)If the answer on question 1 is "yes, they are allowed to discharge(obviously)", since nothing will be paid to hospital from Prudential during the investigation. Do Prudential policyholder can discharge without the policyholder themselves pay first from policyholder own money to the hospital?

So, do Prudential policyholder can discharge without the policyholder themselves pay first from policyholder own money to the hospital?

Initial GL has been issued and the claim is in the midst of investigation, who will pay the bill upon the client discharge?
A)Client pay and claim back later
B)Hospital will absorb the bill first and wait for the investigation result from Prudential
C)Prudential will pay on behalf of the client even it's still investigating

This post has been edited by ExpZero: Apr 9 2014, 01:10 AM

I can accept what you are saying but not Roy's because GL is an agreement from the insurance company to pay on behalf of the policyholder while in-patient.
I think he has missunderstood the definition of Guaranteed letter and claim status.

I don't see the point of Roy saying that Prudential approved GL and then investigate shall proceed and policyholder have to pay from their own pocket money for the bill first.(Awaiting confirmation from Roy). Because I don't see a point of approving GL without guarantee the payment.

Whatever Roy are explaining is like
1)policyholder went to hospital
2)GL issued
3)policyholder is happy and thought that his claim is approved, so he hospitalize
4)The next day, GL is under investigating for pre-existing non-disclosure and is withdrawn (please bear in mind, there is some possibility but not all in Prudential according to Roy's statement)
5)policyholder gotta pay to hospital first and claim back.

I don't see the reason why GL is issued since Prudential don't guarantee the claim.

I have mentioned multiple times that if the above scenario happen, it simply means that the GL actually has been declined.

Apart from the official statement from Prudential Customer Service Officer as per what I have mentioned few days before. Finally today I have received the official statement from Prudential via email.


As we all know that when GL is approved, it means that the HAS staff determines that the case is coverable and it is an assurance of payment offered by insurers to hospitals, client's claim is absolutely Guarantee by the Insurance company up to the annual limit/lifetime limit.

In the official Prudential statement above, it simply means that Prudential won't 100% issue the Guarantee Letter to policyholder, which is in-line with all my posts before this that all GL is subjected for approval in the whole industry with no exceptional.

I really don't understand the why would "your Prudential"(I used "your Prudential" because your protocol isn't in-line with official Prudential statement) issue the GL without guarantee to pay for the bill upon discharge. What's the different between issue GL and decline GL then? To make client happy for........1 day? and feel tremendously sad afterward if withdrawn?

Your statement isn't the same with ChrisGood which is from Prudential as well. Your statement isn't in-line with Prudential's official reply either from customer service verbally or written in by the email.

Please provide further evidence to back your statement up.

You are right in your sense that not everyone can afford to pay the bill upfront, then how can official Prudential email said that they will decline the Guarantee Letter as per my attached email snapshot?

You mean hospital let the client discharged without anyone pay the bill? seriously?

Insurance company account department don't have to sit in the hospital in any day of the month to make the payment, you seriously think that Prudential have an account department in every hospital?

The invoice is guaranteed to-be-paid on the spot when discharge occur, hospital won't allow the policyholder to leave the hospital without payment. It's the same like general insurance for car accident, do you think that without the payment from insurance company or client, the workshop will help you to repair your car first? And let you leave with your car without payment?

Whatever you are saying are totally wrong and not as per the original procedure by Prudential or any insurance company. As long as the claim is substantial and when the insurer is cross checking to the clinics or any other private hospital for pre-existing, no claim is payable to the hospital and the client will have to fork out the money first.

This is the reason Prudential replied my email with "will not ask you to pay back after your admission"(highlighted red). If the procedure is as per what you have described, the Prudential email will be saying "If after the cross checking with other health institution and found out to be pre-existing, we will ask you to pay back after your admission", but this will not occur because this is not insurance company's procedure.

I strongly recommend you to email Prudential and prove to all the readers in this thread that the procedure is as per what you are trying to tell us by attaching the email content here.

You are simply implying that insurance do place their staff in hospital to do the payment which I found it ironic.

There is no clause to say that GL will be guaranteed to be issue by Insurance company in the policy nor verbal nor email by Prudential and yet as an Prudential's representative yourself had overwrite the procedure of your own company without their official consent.

I'm requesting the fact(which is not the word you utter) but rather the words from official Prudential to be attached here as a proof to support your statement but I'm yet to see any. Contradictory, I have several proves to back my statement up either verbal or by written. If any of the readers would like to know more, please call to Official Prudential hotline to know more about the procedure as a supporting evidence that I have found.
Prudential Call Centre: 03 - 2116 0228
Operating Hours : Mondays to Fridays, 8.30am - 5.15pm (excluding Public Holidays)

I don't feel that this is time wasting as claim procedure is the major consideration when client are purchasing insurance. Client are purchasing insurance in hoping for a honest agent and not mislead information. I'm writing this to avoid the readers in this thread to be mislead about the procedure of claim by insurance company.

Don't misleading readers in forum to think that Prudential will issue the GL and investigations will follow. In fact, if the GL is issued, investigation is ceased, no investigation will be continue.

Guarantee Letter means that the insurance company is taking up the responsibility to bear the hospitalization bill up to annual/lifetime limit of the client medical card. It does not simply issue and withdrawn, the word of "Guarantee" in the context of "Guarantee Letter" is not light.

I'm giving you one example in car insurance of how ironic are you in explaining Guarantee Letter
Let's say a person is claiming for car insurance, the insurance company is guaranteed for the claim. Upon the car finish repaired, the company withdraw the "guarantee" for the claim and client have to pay for it.

In fact, the Prudential Customer Service Officer even told me that GL will be decline if they suspect there is non-disclosure in the policy upon admitting to hospital after the initial medical report is submitted and reviewed. Which I think she makes some sense there but not you.

There is no point to issue GL if there is some possibility of company not paying the claim upon discharge. What's the point of issue GL, Prudential pay the bill upon client discharge, if the investigation after discharge result shows non-disclosure and who will bear the payment?

Prudential will give a court order for the client to return the money? If it's not so, then what's the point of investigate?

Please call your own company and ask for the procedure for your claim knowledge.
Prudential Call Centre: 03 - 2116 0228
Operating Hours : Mondays to Fridays, 8.30am - 5.15pm (excluding Public Holidays)

To make it short, is this what you are trying to say?
1)Client admit to hospital
2)Prudential check for pre-existing, non-disclosure
2a)If pre-existing is found, GL is declined
2b)If pre-existing is not found, GL is approved.
3)If GL approved, Prudential pay for the bill upon discharge, Prudential continue to check for pre-existing after client discharge, non-disclosure(isn't this has been check in step2? Why re-check again?)
3a)If pre-existing is found, Client have to pay back to Prudential
3b)If pre-existing is not found, no action will be taken
Please correct me using the above format instead of writing in a TLDR form.

In Great Eastern, we are talking about credibility of GL. There will be no chance for Great Eastern to withdraw the GL once it has been issued unlike Prudential where it have possibility of withdrawing GL after issuance since Prudential will still investigate after the issuance of GL.

Upon detection of non-disclosure, the policy will be temporary terminated and the policy will be re-underwrite. Shall the severity is not serious, loading or exclusion will be imposed. Upon client's consent is gotten, the policy will be reinstated and protection will be continue.

Shall the severity is serious, the policy will be null and void.

In both cases, upon investigation and the policy is temporary terminated, Great Eastern wouldn't ask for premium. However, shall the policy reinstated in the future, policyholder have to pay for the premium that has skipped.

I suggest you make a call to Allianz.

As far as I know, left-over medical expenses is not covered in all companies. Previously such condition is not covered in Great Eastern but after 2011, this is allowed for all the policies even those policy inforce before 2011.

Figuring the number you should insured yourself requires a bit of thought. A rule of thumb suggest you get 5 to 10 times your annual salary. But if you want to be more precise about the number you should get yourself insured, think about how much money your family would need to cover the lack of your income.

Getting a life insurance isn't for everyone especially for one that have no dependent. If you have no parent, no sibling, no spouse and no children. What's the point of getting insurance right? However, most of the time, that's not the case as we will definitely have someone who we care when we are leaving the world.

Shall you are a married person, you need to know how much is your total debts as well as your mortgage so that your family doesn't have to worry about these obligations. If you have a spouse that doesn't work or are incompetent to find a job that could easily replace your position as breadwinner, you should take this into account seriously.

Furthermore, we need to take into account that how long does my partner will able to support the family without you as the source of income. You need to calculate the cost to raise your youngest son to age 18, a term or investment link would probably suits this situation.

Obviously there are other people in your life who are important to you and you may wonder if you should insure them. As a rule, you should only insure people whose death would mean a financial loss to you. The death of a child, while emotionally devastating, does not constitute a financial loss because children cost money to raise. The death of an income-earning spouse, however, does create a situation with both emotional and financial losses. This also goes for any business partners with which you have a financial relationship (for example, shared responsibility for mortgage payments on a co-owned property).

Since you have gotten back all the premium paid, there will be no withdrawal of cash value.

I have no idea about this yet because there is no non-disclosure in my portfolio.

However, I did a freelook before, the client gotten back more money from he paid. After I called to Customer Care Line, it's because company took the initial unit price - sold unit price.

So yeah, if and only if the same protocol is implemented, you will earn/bear the fund price different.

Figuring the number you should insured yourself requires a bit of thought. A rule of thumb suggest you get 5 to 10 times your annual salary. But if you want to be more precise about the number you should get yourself insured, think about how much money your family would need to cover the lack of your income.

Getting a life insurance isn't for everyone especially for one that have no dependent. If you have no parent, no sibling, no spouse and no children. What's the point of getting insurance right? However, most of the time, that's not the case as we will definitely have someone who we care when we are leaving the world.

Shall you are a married person, you need to know how much is your total debts as well as your mortgage so that your family doesn't have to worry about these obligations. If you have a spouse that doesn't work or are incompetent to find a job that could easily replace your position as breadwinner, you should take this into account seriously.

Furthermore, we need to take into account that how long does my partner will able to support the family without you as the source of income. You need to calculate the cost to raise your youngest son to age 18, a term or investment link would probably suits this situation.

Obviously there are other people in your life who are important to you and you may wonder if you should insure them. As a rule, you should only insure people whose death would mean a financial loss to you. The death of a child, while emotionally devastating, does not constitute a financial loss because children cost money to raise. The death of an income-earning spouse, however, does create a situation with both emotional and financial losses. This also goes for any business partners with which you have a financial relationship (for example, shared responsibility for mortgage payments on a co-owned property).

Investment link's insurance charges is designed such a way that the policyholder have to absorb the increasing of insurance charges as age increase whereas Traditional Whole life policy is designed that the insurance charges is fixed throughout the whole term. That is one of the reason Traditional Participant Plan tend to have lower initial protection and higher protection(Surrender value + Basic Sum Assured + Additional Basic Sum Assured) at later year.

As I mentioned in above post, one should only purchase the appropriate amount of protection according to the situation and needs because insurance is not an investment. If your financial planning is
1)I'm young, I pay little and get high coverage because I needed the protection. Shall in the future of retirement age, I will decrease the protection because I have other planning to my second generation. You suits Investment link plan.
2)I'm young , I pay little and get little initial coverage because that is the protection I need. In the future of retirement age, I would like to leave this legacy plan to my second generation or I may surrender the policy and get the money as my retirement fund. You suits Traditional Whole Life Plan.

Nevertheless, if the budget allow, I'd recommend you to get both plan in a moderate budget as it covers front and back.
A few vital questions you have to ask yourself
1)Will your company continue to retain your service shall unexpected event happen to your life? If it's not not then how is your future medical expenses?
2)Do your company's medical card have adequate of limit to cover for major hospitalization? If it's not, then do you have backup fund for it?
3)Do you have enough of backup fund if unexpected event happen before age 40? Are you willing to use the backup fund for such purpose?

Nevertheless, having a personal medical card always come in handy when you needed the most.

I don't suggest to own two policy unless necessary to avoid unnecessary administration charges. In your case, ILP+medical will be more suitable to you shall you do not have adequate of medical protection with you.

You are right, if the bill doesn't exceed the limit by the company medical card, the personal medical card will not be utilize.

However, it's crucial to have personal medical card due to the following reasons.
1)Will your company continue your service if you are un-fit for work?
2)If the answer is no, you will lose your medical coverage. So how do you protect yourself from future medical bill?
3)Most of the company do not provide medical coverage during probation period. How you going to hedge the risk shall unexpected event happens during the period while you are job hopping?

Choice is always on you

You might be confuse between policy lapse and miss one of your monthly payment.

If you have missed your monthly payment, your policy is investment link and the cash value able to sustain the policy's insurance charges. Your policy might not lapse yet and you are still entitle for the coverage.

If you have missed your monthly payment, your policy is investment link(with cash value depleted) or standalone medical card. Your policy is lapse and you are not entitle for the coverage.

Please be notice that there will be 30days grace period from monthly payment due date.

Cherroy has explained it in a good layman concept but not the whole detail of the plan. Anyway, what he said would be good enough for a mediocre people to know how it works by comparing it with traditional life.

I believe your friend is advising you to buy term. If you are looking for cheapest initial startup premium for life protection, in Great Eastern, Investment link can provide higher protection than term with same premium.

An insurance agent that only looking at commission will not last long in this industry as this industry required a person with passion and love toward what he is doing by helping others. I've been seeing a lot of agent who only prioritize commission left the industry after a year or so.

If you think your agent is good, try to refer some of your friend to him. He will appreciate you

Yeah, term commission is higher than ILP and term's premium is higher than ILP. I wonder why agents like to sell ILP nowadays

ILP initial premium can be lower than term in Great Eastern, I'm not sure for other company.
For example, 30/male/nonsmoker/class 1/RM500,000 Life+TPD coverage.
Term cost RM3075/year for 30 years while ILP is RM1600/year. It's almost double the premium.

So if one is looking forward for buy term and invest the rest, he should really consider a plan that gives lowest initial startup premium. Well, some agents might throw me stones as I'm flipping their rice bowl by advising clients a way to save premium hence there goes their commission