Hi, look at my sig... ok now look back at me.

Please take a look at the illustration below, I have helped a number of forummers reduce their premium while maintaining the coverage:



I've also created a GE quotation as per linked below, with these details. Keep note that as far as any insurance plan is concerned, every other rider are just bell and whistles that you have to pay for. As for life and critical illness coverage, you should get a separate one as you should not combine medical cards that you would need beyond retirement age WITH life policy that should be stopped (because it gets too expensive) beyond retirement age:

Monthly Premium: RM140
Life: 12k
CI: nil
Accident: nil
Hospital Room: 200
Medical Card Annual Limit: 120k, Lifetime Limit: 1,200,000

Link to quotation: https://www.dropbox.com/s/xrmtkobgvtut11e/Q...246584.pdf?dl=0

This post has been edited by wild_card_my: Dec 1 2014, 06:52 AM

why u chose sell GE bro?

I thought u can be independently carry many life insurance company product such as how u carry mortgage.

1) DON'T CANCEL EXISTING... you have paid a lot of charges. if you go for PRU, you start again, you pay commission again. you lose.

2) if you want better medical, request for change of rider with GE, if possible. you don't have to cancel anything. i admit annual limit seems more relevant but really it's hard to hit. monthly income 3.3k only. don't spend so much on insurance.

Nope, GE does not license its product to external providers like other smaller insurance companies. The same way Public Mutual does not allow 3rd party agencies to sell their products.

This is because these 2 companies are the strongest companies in the market and they do not need to leverage on multi-product agencies, unlike other insurance and unit trust providers.

Since you've got a medical card with GE already, there is no need to get another medical card as you can't claim from 2 different medical card.

What I can see is that you can upgrade your medical slightly with your existing GE card and bump up some of the protection as 95k is not that much with your RM39.6k income annually. 95k is probably going to last only 2 years of expenses.

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

Thank you for all you valuable feedback, I will be rejecting the offer and leave my existing GE untouched for the moment. Looking forward, when and what adjustment do I need to make for my existing GE insurance? As wild_card_my mentioned, should I stop my life policy after retirement? And is it possible to do so?

Q1: Can you afford to upgrade? I mean, you are planning to get married, house?, and kids later on. Having enough savings might be the higher on the priority list rather just making your insurance policy better. There’s a warning in all those insurance documents. “... and that you can afford the premium throughout the policy duration”

Q2: Under SOME circumstances, you might be able to upgrade without increasing your premium. Assuming yours is investment-linked policy. Thus, I like to bring your attention to a few things (I don’t think they need urgent attention but just to point out); ultimately it’s up to you to assess and check too.
a) CI 80k. Personally, I prefer this amount to be slightly higher, because of the cost of treatment, and also as income replacement. Sure, maybe 80k is enough today, no dependents but 10 years later factoring in inflation, this amount might not be adequate.
b) Life 95k. Right now you are not married and still without kids. When you are married, and have kids, the question you should ask yourself is, touchwood something happen, is this money enough for them for the short term?
c) Early CI. Lately more insurance company has been selling this Early Critical Illness insurance because the normal critical illness is only claimable when one is REALLY sick. Example would be cancer whereby early stage cancer is not claimable (can’t claim CIS under normal CI) but claimable under Early CI. (This is only an example, details best to refer those documents like brochures, etc.)

PS: Your life policy is what is holding everything together, that’s the main branch. Well, you should be able to request for reduced sum assured of your policy (from xxx,xxx to x,xxx subject to t&c of the insurance company) and you can do that (anytime depending on your needs) when you have hit the no-dependent stage. That way, your medical and CI insurance is still intact and you don’t have to pay a lot for unnecessary life insurance.

Hi hi insurance sifu, I would like to get advise on difference on policy fee, stamp duti, and premium charges on below scenario.

A. 800k sum covered for dth, tpd, ci from single investment link policy
B. Each 400k sum covered for dth, tpd, ci from 2 difference investment link policies

I understand that policy fee is charge by policy, even total sum covered is same, but scenario B may have to pay double policy fee?

Yes, each policy comes with its own policy fee (or service charge for takaful), totalling about RM72 a year..

Most agents try to create 2 policies to avoid the first policy from going through medical checkup (low enough coverage according to age that it dosn't trigger the medical checkup requirement). Also some agents have a minimum number of cases that they need to get so it would be wise for them to divide the clients' policy into 2.

Depending on your health, and the results of your medical checkup it may or may not be beneficial to get 2 policies instead of 1.

This post has been edited by wild_card_my: Dec 4 2014, 01:57 AM

Hello all sifu, I'm really need advice from you all...
I'm 27 yrs old, income ~RM2.8K, non smoker...
About last week I had signed for a SmartProtect Essential Insurance 2 with monthly premium of RM300...

lump sum death and tpd = 360K
U100 IL Critical Illness Benefit Rider (IL CIBR) = 360K
U119 SmartMedic Xtra (SMX150) = 150 (room) + 90K (annual) + 900K (lifetime)
U75 IL Hospitalisation Benefits Rider (IL HB) = 50 per day
U102 IL Premium Waiver Extra Rider (IL PWE)
U133 Smart Extender (SE90K) = 900K (annual) + unlimited (life time)

My questions:
1. Is that the premium too much for my income?
2. If there is too much, any suggestion on the change of the plan? My 1st concern is medical card, follow by CI and lastly death and tpd...
3. Can I change/cancel the insurance now as I ady signed the insurance for 1 week++??

1 of my fren said the room and board RM150 is far not enough me...

In my opinion, I think you try to cover too many items.
I think that setting about 10% for insurance is OK, yours might be slightly a bit too much.

For the time being as you are young and have I assume no dependent, why buy 360k life insurance... that is really a bit too much. Remember that that money is leave to your love ones depending on you your beneficiary

As for the Critical Illness, Hospitalisation Benefits and Premium Waiver.... all this rider take up money, based on your need, it is better to reconsider and cancel. RM150 for Room and board may not be enough if you want single room but generally if one is hospitalize, a four bed room or a single unit room is all the same. Besides, even if it exceed, just pay the difference lo, the more important coverage is the 900k annual limit to cover for accident.

When your income increase, and your needs changes, then come back and re-evaluate your coverage and riders.

1. Maximum that I would recommend for an individual or paying for his or her own immediate family is 8% of their net income. Clearly you are over paying a little.

2. The death and tpd protection is way too high for someone who says that he wants to prioritize hospitalization. You should get at least RM200 of hospitalization and be prepared to share the rooms.

Essentially if you dont have any dependents and unbacked loans, you dont need the RM360k

3. You have 2 week free look period before you can cancel it

Get an agent that will ask you about your lifestyle commitments, suggest a set of protection, and then minimize the premium paid as low as possible. For example, I ran your numbers on my system and I could get the same policy for RM3300 a year. Obviously I still wouldnt recommend that to you because this policy-protection is unbalanced.

Link to the quotation with the same protection but cheaper premium: https://www.dropbox.com/s/6rmhwz7a1jpkluh/Q...053264.pdf?dl=0

What I would recommend though, even without thoroughly understanding your commitments. The idea is that you should reduce your total protection because you dont need that much. Reduce the premium but increase the hospitality: https://www.dropbox.com/s/qsmg743s7mz4bj0/Q...34147a.pdf?dl=0

This post has been edited by wild_card_my: Dec 4 2014, 01:36 PM

1) yes, way too much... i would say keep it at maximum RM200 per month ~ RM2400 per year. cause income about 2.8k... 200 is way good enough.
2) reduce sum assured to below 200k. reason: the other guys said. i think Hospitalisation Benefit is worth cancelling.

Seem like my insurance is very unbalance...
After I read your opinion, I think that I should adjust my premium to RM200 - 250 and
1. death and tpd = 0~120K (considering I have car loan and ptptn loan)
2. CI = 120K~240K
3. medical remain same

however, the GE Smart Medic Xtra (SMX) and Smart Extender (SE) got 1 problem is I cannot top up my room and board SMX without affected SE...
For example I take SMX200 (Room = 200), then I cannot get SE90K but need to change to SE100K, which may increase the insurance charge..
That's the reason that agent add a Hospitalisation Benefits Rider to cover this issue...

This post has been edited by maxwelx64: Dec 4 2014, 02:13 PM

All these riders are so confusing. The price of riders are also very unclear even if you look into the policy. The only thing you can see are the cost of insurance for "BASIC" and "RIDERS' which means the price of the riders are already added together.

Take a look at the quotation that I made, mine is as simply as a policy can be. Not evena hospitalization benefits rider since those things are too expensive and not worth it. You got into a hospital, so what? Be glad that you dont have to pay 90+++% of the cost, get RM50 a day extra for what?

This post has been edited by wild_card_my: Dec 4 2014, 02:26 PM

Actually the topup on room and board means topped up from you own pocket. Not topup to get a better plan
Hospitalization Benefits Rider is not useful unless you really live day by day without any saving and you have kid that need the money when you are hospitalize and not working...

Getting RM50 /RM100 when you are hospitalize.... you seriously want to "earn" such money and pay much premium
Again, always consider if this and that happen, do you have enough to cover, if need to topup, is it in your comfort zone? Purchase insurance to cover emergency (example, surgery, tumour, accident) not to cover those menial cuts and bruise and get back money.

1. I don’t think car loan and ptptn loan warrants the logic of going for life insurance. It doesn’t add up, in my opinion.

2. Your CI cannot > DEATH/TPD. Your CI is deducted from your sum assured. it's NOT additional benefit. NORMALLY, insurance company has another type of CI rider where the benefit is additional. Check with GE agents, I’m not sure.

4. For the GE Medic... if you take SMX200, you pair it with SE120k, that's the intended pairing. (Disclaimer, I happen to know about this… I’m not staff or agent, just sibuk)

However, I hope you KNOW what Smart Extender does. You can choose NOT to have smart extender in your policy. It’s up to you.

I see... Totally agree regarding the hospitalisation benefit..
However, top up the medical card not only room and board, but also increase lifetime limit, which is more beneficial for me...
I will cut this down too..

Actually it all boils down to you or your dependent needs and your budget. As money is always the constraint, we want to cover as much as possible within our budget. So topup medical card is feasible but currently may not be within your budget, you can always review/change your plan along the way, as a matter of fact, one should review their insurance very few years, to check if the coverage is still in line with your life style and product being offered. Your units in the insurance can always be manipulate by yourself to achieve your life goal, remember that

Example: 5 years ago medical card only offers lifetime limit of 40k with a premium of RM150, but look at the products offer now, 40k lifetime limit is a joke. So if one review its medical card, he can change the units to be upgraded into the new plan accordingly or in worst case scenario, sell the units and buy new plan.

The correct thinking is not to buy an expensive house and live forever in it, but buy a suitable one, live in it, and upgrade based on your needs and budget when the time is right.

Oh.. and one more reminder, the premium all those insurance agents quote, in most of the time not able to cover you till the intended ages. The agents can only generate 20 or 30 years of prediction anyhow. So if you know how the ILP products works, you may need to topup from time to time and always check the units available in your account every few years and tally with their insurance charges to see if the projection is in line. You don't want a rude shock one day in your 60's to find out that your medical card lapse because no more money in the account despite coverage is till 80 years old...