What do you guys think about children's educational funds that cover the death of the children? The return is exceptionally low too, close to being the same as the amount that you put in at the end of the term.

Why not insure the bread winner and put the in bond funds, then absolute assign or nominate the proceeds to the children?

Noted! We are on the same page.

For MLTA/Life that is focussed solely on protection though, would you recommend reducing the premium as low as possible so that the policy is really focussed on only protection? But if that is the case, the investment returns would look so bad that the policy holder would have to top up mid way in life.

Ive seen several policies with too high a premium, sure the investment returns are "good" but those monies should be invested in a separate account meant only for investments.

What do you think?

I am not too familiar with UT attached as rider for ILP, because I always minimize the premium paid, and ask the client to invest in ASB (for bumi only and no sales charge) while for non-Bumis, I recommend them to invest in bond fund that carry less sales charge than equity funds.

1. Take it this way: Insurance company is best at running the insurance business, so it is best that you leave them for your protection. But UT companies are best for managing the investments, so let them manage your investment portfolio.

2. So the best way to go about this, in my opinion, is to pay the least amount of premium allowed by the software and the anything else that you have is to be invested as part of your investment portfolio

Remember the 3 tenet in financial planning?

a) Prepare a few months (Depending on your job security and financial state) of emergency fund
b) Buy insurance to protect any downfall
c) Invest your money for future use

After paying for your insurance at the minimum premium level, anything extra is all for investments.

This post has been edited by wild_card_my: May 30 2014, 08:58 PM

This is true. If you look at the performance table below, the Investment-linked funds have comparable performances as the unit trust funds. But my professional opinion is for you to keep your financial baskets as diversified as possible

Sorry for the large sizes, if it is any smaller you wouldnt be able to see:

Investment-linked perforamance


Unit trust performance (1)


Unit trust performance (2)

How much cash do you need when you are already liquid with insurance payout?

The premium should be minimized and an extra cash that can be used to pay the premium should be invested in other schemes that focus on investments like the unit trust.

I am quite disgusted with some of my fellow agents who go about selling expensive premium insurance by increasing the cash value.

This post has been edited by wild_card_my: Jun 18 2014, 07:01 PM

1. It depends. Different medical cards have different terms of coverage, and it is not so black-and-white as each company formats their quotation somewhat differently. One company may have lower per-annum coverage but has better terms of coverage (take-home medicine can be claimed for example). As it is, RM100k should be enough for typical operations and stay in some of the better private hospitals.

2. In my opinion, the women-specific riders are way too expensive. This is due to the law of large numbers in that, only half of the population are women so only half of the population is eligible to take the rider, and from that already small number, only a few are taking those riders thus making it expensive for everyone. A question though, is the coverage meant for medical costs or a pay-out in lump-sum? Because if it is the latter, you are simply wasting money. The rider is too expensive for such a small s um.

3. This matter is up for debate, but I find investment-linked is much more flexible. You need a good agent who will sit down with you with the computer and design the policy for you though. Remember to keep the premium as LOW as the computer software allows you to do it. Look up for the term "policy slack" or something like that. The bigger the slack, the more you are OVERPAYING for your policy. Here's an illustration:



This post has been edited by wild_card_my: Nov 22 2014, 04:45 PM

Hey guys, I am just sharing what I drew and shared with my client. A client was asking for an MLTA quotation because someone quoted him an RM6000/year policy that covers RM500k death/disability/critical-illness. He asked if I could lower his premium cost because I claimed that I could. So I would like to share it with you guys. The reason I could do it is because when quoting a policy, not many agents would admit to this, but there is a disconnect between the COST OF INSURANCE (COI) and the PREMIUM PAID. A few things the clients need to understand:

a. The COI is fixed cost to the type of protection you are getting. So if you are taking RM500k for death/disability/critical-illness at the age of 30, the PREMIUM can be set by the insurance agent at RM2500, or RM3500, or RM6000, all depending on how much PREMIUM the agent is setting.

b. Keep in mind that the agents are being paid commissions based on the PREMIUM that you pay, as such he/she is inclined to increase it to the levels high enough for them to enjoy a good commission, and to a low enough levels that the clients are comfortable of paying.

c. The extra (unnecessary) premium paid by the client would go into the cash-out portion, but not before being cut off to pay the agents' commission and company cut. Wouldn't it be prudent for you to minimize the amount of premium paid and use the savings to directly invest in an investment company?

Anyone can ask me for any quotations and I can assure you that the premium would be the lowest the software would allow me to set, while keeping the type/amount of protection that you need. I can help with policy review as well, just let me know the type/amount of protection you are getting, and premium paid and I believe I could save your costs.



This post has been edited by wild_card_my: Nov 30 2014, 03:14 PM

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

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.

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

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

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

Best you gather all the policies and investment statements from each insurance policies and study them.

There are many types of insurances and each may have different clauses in terms of termination; being that these policies may be old, their termination clause may be very well different than the current ILPs.

I would say nothing is a must, it all depends on your situation. Do note that these early protection CI and female CI all have costs and they can be expensive.

Do you really think that you would need them? Your medical bills are already being paid for by the medical cards, these early protection CI draws from the lump sum payment that would be reduced during your total disability, total CI, and death anyway.

That's true, without the early critical illness payout rider, you cannot clain parts of the CI lump sum payment.

But the question is, is the cost of the rider worth the parts of the rider? The dialisis part is to confirm that your illness has reached stage 3 and 4. But with this early pay-out scheme, you will be able to claim your CI lump sump payment while your illness is still in stage 1 and 2, but depending on the rider's terms and condition.

If you were to add this rider, your cost of insurance would go up and so will your premium (well it depends). In the end of the day, it really does depend on the client, but sometimes when they are not sure, I guide them from wasting their money.

Is room RM250 enough? It's too small a jump from RM200 to RM250. The lifetime limit sounds high enough that you shouldnt worry for the next decade or so.

Yes it will be higher, but you have saved over the years by not paying more each year too. The idea is, once you do get an illness, there is no upgrading or getting a new policy. That is all.

As for the room charges, different company has different policies, like if you upgrade too much (RM200 room medical card, but you stay is RM300 room), you would have to pay an increased co-insurance, etc. Check your policies and calculate to see if it is worth it to upgrade.

Rm20 incriment a month, isnt that bad, you spend more money eating at McD, but as with all things, calculate and see if it is worth it or not.

Perhaps, looks good. Just, dont worry about using the policy ya, you bought it to use it when you need it. No point in "saving" the policy for later use.

Sorry to hear that. But that's why I stress on getting the core of the medical card policy only. The bells and whistles like Daily ALlowance only increases the premium and make insurance agents become richer :|

You dont need those riders. Just get a basic medical card, Death, CI, TPD. Enough.

If you read a few posts above you will find soem of my postings that talk about the basics of insurance... essentially, the premium paid has nothing to do with the protection you are getting.

THe premium can be set by the agent however he/she wants. The number you should be looking for is the cost-of-insurance (COI). COI directly correlate with the protection+riders that you are getting.

I try to be as honest as possible when dealing with my clients. I want them to know everything I know.