Just make sure you invest in the right time and not blindly put everything in UT.

Buy high sell low = loss!
Buy high banbantankuku (wait long long) = loss on interest!

China Select fund (already run long time but still painful )

Insurance comes with higher insurance charges as compared to UT, since we are providing coverage. The higher the coverage the higher the insurance charges.

If the policy has lapse, then no, the insurer is not liable to pay the claim.

C'mon bro, give him the chance to explain....

Spoiler for Chrisgood

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Moving on, all insurance works on the principle of risk transference. The higher the risk, the higher the premium.

The risk here refers to age, gender, occupation, smoking status, health status, coverage amount.

The same principle applies, be it term or ILP or whole life since the insurance charges will increase by age due to our risk has increase over the years. Its like insuring your brand new car vs a 20 yo car.

The only difference is whether the plan do accumulate cash values so that the policy owner do not need to worry of having to fork out more in later years.

An ILP plan consists of 3 accounts. The Basic Unit Account (BUA), The Protection Unit Account (PUA) and the Investment Unit Account (IUA).

The BUA consists of riders like life/Critical illness/Accident cover. The PUA consists of riders like medical/waivers/hospital income etc.

Both BUA & PUA starts with a lower allocation to buying you units, 40% and gradually increased to 100% after the 6th year.

The IUA however, starts at 95% allocation even from the 1st year of the policy, 3% agent commission, 2% admin charges.

Hence, if your purpose is to buy protection, buy more on BUA/PUA account.

If your purpose is more towards putting it as an investment/regular savings, do it in IUA. It provides higher allocation than BUA/PUA.

Of course you can see the difference between the agent commission, most agents will be tempted to put more on BUA/PUA and tell you its for investments.

One thing that you need to be aware of is that when the funds in ILP grows, so will the fund management fees. As such you may need to do 'something' to keep it at a min (which I will only tell my clients)

I think the confusion was because whyme was initially looking for investments which later he clarified that he was actually more into protection.

This post has been edited by roystevenung: Jun 12 2014, 10:03 PM

Best you bring the policy to AIA and inquire or ask your agent for help. You may also call AIA Customer with the policy number ready.

http://www.aia.com.my/en/customer-support/...contact_us.html
"Call us at 1300 88 1899. For overseas customers, call us at 603 2056 1111"

Not sure how long AIA takes to process the cheque. Best if you call to inquire before spending a trip to SG.

Even if you stand in front of the AIA office, if the cheque is not ready, it is not ready.

Ps. For Prudential, once the necessary documents are submitted, 3 weeks for the check to arrive.

The Life/CI/Accident coverage you may buy term up until retirement age or up till age 70. Most term insurance are only up to age 70, which is suffice since most of our dependents are mostly over.

Not to mention that the coverage for life/CI beyond age 70 is expensive.

Medical on the other hand may need to cover till age 80/90 or some people even get covered till age 100.

At the moment, only plans that are attached to an Investment Linked Policy (as per my understanding) is able to provide coverage till age 100.

Just concentrate on the medical. The rest can follow suit.

While not trying to justify for the increase, the increase only affects older policies.

Secondly the increase was last done in 1997. That is 17 years of not increase.

The Rm15.xx/mth may be burden, but do you know that any admission for a senior citizens on average costs > Rm10k these days?

A simple procedure like appendicitis costs RmRm8k-10k. This was < Rm5k in the year 2000.

Do help to file an official feedback to customer.mys@prupartner.com my on this.

The lifetime limit increase do serve a purpose for those whom are not able to upgrade their policy due to illness.

It boils down to the sustainability in a long run.

BTW please help to feedback to customer.mys@prupartner.com.my to get your feedback heard.

Edited due to Typo:

This post has been edited by roystevenung: Jun 26 2014, 04:13 PM

We will be having this conversation again say 10 or 20 years later on the 'other' policy.

What the insurer gives, it will need to take back. Only time will tell. It does not operate like a charity body.

If it cannot sustain, then the only option is to bungkus!

On a related note, has anyone seen the doctors at the clinics lately?

Individual claims experience will not affect much the COI, unless everyone else starts claiming which affects the pool of funds.

Insurance company is the custodian to the pool of funds.

Medical insurance for most of the insurance is a losing business.

1. Do a comparison between the country you are in PR with for the life/CI and decide whether you need to cancel your Malaysian class policy. Some countries, you can buy high life/CI cover cheaper than Malaysia. Seems like the mortality rate for Malaysia is high.

2. As I understand it Malaysia does not allow dual citizenship. If you surrender your Malaysian citizenship you might as well cash out your policy and buy the insurance in that PR country.

Moreso if the PR country is an A list country since the medical will be very costly.

For a Malaysian class policy medical card, if you travel outside of Malaysia (except for Sg and Brunei) for more than 90 days, you need to fly back to Malaysia to get treated. If it was below the 90 days, you will be reimbursed with a customary rate as charged by the Malaysian hospital.

For example if the heart bypass were to cost USD 100k in the US, you will only be reimbursed with Rm80k (subjected to your annual limit, if any), which is the averagely charged amount in most hospitals in Malaysia.

Lets not forget that the premium that you pay is in RM, and it is only fair that ypu are reimbursed in RM.

1. You buy policy for protection, not for savings. In order for it to break even (the premium paid), it will take at least 20 years for the policy to be in-force. Even so, there is no guarantee it will break even.

2. If you are referring to the Life & CI, then yes, as long as you can proof that you were still a Malaysian (IC needed), then the claims for Life & CI will be honored.

Medical claims on the other hand is subjected to the travel and residence clause as stated earlier.

Err... I am 110% sure that even if it was for savings plans you need to fully declare the health condition, or risk having the policy nullified for non-declaration.

Otherwise people who has cancer will buy insurance savings plans with waiver on the saver?

As mentioned in my PM, the insurer will need to know exactly what they are up against.

Any insurance product will have a medical declaration and it is the duty of the agent to ask and at times observe the client response. They are the eyes and ears of the Underwriters.

If you have mention the material fact to the agent, make sure it is written properly in the proposal form. Failure to declare material facts that may impact how the policy is underwritten may cause the policy to be considered null and void.

Anyway, if local insurer is not able to take up the risk of insuring, and if you are still keen on getting medical insurance, you may want to look for International Insurer.

Loading and/or exclusion may be imposed (due to the congenital illness) and Medical Exam is required irregardless of age.

The premium is ~USD 2500 pa for USD 1m cover. However, at older age > 75, the premium may be as high as USD 7K pa (with deductible of USD 6K). Worldwide coverage, including dental. Interested?

Once the policy has been approved, it will take 2-3 weeks to get the policy document as it needs to be printed.

Are you paying by cash or by autodebit? If by autodebit then most agents will collect 2 mths upfront (but it is not mandatory). This is because of the bank approval which takes time.

That said, it would be better to pay using a credit card or debit card instead of handing someone you had met the 1st time cash.

Edit: I am a bit confused on the mode of payment. Why is it that the insurance company has debitted but you still need to pay Rm400?

This post has been edited by roystevenung: Jul 14 2014, 11:10 AM

Not sure how other insurance company works, but for Prudential if it was monthly payment via credit card, you will only be debited Rm200 only, and not 2mths.

Never mind. Google translated

This post has been edited by roystevenung: Jul 17 2014, 10:31 PM