In USA, there are short term disability insurance and long term disability insurance. They both offer income protection.

There is NO TPD since LTD and STD provide better coverage. You get pay even if your disability is NOT TOTAL and Permanent.


http://www.ssa.gov/dibplan/index.htm

Almost all working American are covered by the Government Social Security Scheme that has disability protection too.

Dreamer

I get your point in comparing insurance in Malaysia and USA. But there are many factors that must be considered. Insurance industry in USA is very big where competition to produce product that can cover just about anything. Total FYPC (Financial Year Premium Collected) is in Hundreds of billions, compare to malaysia only few company ever reach 1 Billion annually. That's why they can afford to pay LTD and STD continuously. We have TPD but the approach is different. But at least we do have alternatives for TPD, and some people ARE great full when receiving lump sum payment for TPD.





We have our own SOCSO but the current system is WAY behind USA Social Security Scheme. we heard stories about the bureaucracy when try to make claims. And yes the payment is in lump sum, not continue.

Dreamer 101,

Making comparison is good, but keep criticizing won't help either. Yes you are disappoint with the insurance product. Another great thing is you are self-insured. But remember our insurance industry is not that big to give such great benefits and not everyone is lucky as you.



This post has been edited by Eunose Roadster: Dec 9 2006, 09:21 AM

FYI, There's a lot of company selling term insurance in Malaysia.
Even NIAM sell term life policy.
here's the link NIAM

Eunose Roadster,

<< Making comparison is good, but keep criticizing won't help either. >>

I do not think I have been unfair in my criticism. My main concern is that people KNOW what they are buying and what they are buying for. And, this is what missing so far coming from most of the insurance agents that I encountered.

Dreamer

http://www.niam.org.my/teras.html

Civil,

<< That is from 88 sen* a day, you can obtain our complete support in
ensuring your family's future is secured.>>
<< *Based on a policy for person 25 years of age and insured for RM50,000 for a 30-year period. >>

It is NOT a term life insurance. But, you could see how cheap insurance could be even for a NONE term life insurance.

<< . Your money back - all premiums are refunded upon
maturity of the policy.>>

A term life insurance is pure protection with NO money back. So, it could be even cheaper.

Dreamer

Dreamer,

Why buy term insurance if you have nothing to show for it at the end of the year? At least with a cash-value policy you'll accumulate money which you can use in the future. The reason term insurance is an attractive option is it's generally inexpensive compared to whole life insurance.

The way I see it, some customer end up paying higher premium due to rider that are attached to the policy which sometimes are not relevant. That's is why we should always consult a professional.

Civil,

Do you understand anything that I have been posting so far?? The reason why you have a cash value in any insurance policy is because the insurance company take YOUR ADDITIONAL MONEY and charge you ADDITIONAL commission beyond basic protection to invest that money.

You could have buy a pure TERM life insurance with less money and put the extra money in FD and earn MORE money.

Dreamer

USA! USA! USA! USA! USA!

Dreamer,

For me choosing an Investment Link product will be beneficial if you buy it when you're still young in the sense that you have plenty of time to accumulate your funds for the unit trust. However, for term life to be breakeven, it will take up close to 15-20years.

But for Investment Link product you can see people breakeven less than that.

The thing about investment link product, it is very flexible. You can withdraw the funds anytime you want and you can increase or decrease your sum assured anytime. Meaning,there's no need to buy too many policy.

Anyway, buying a term and put your extra money on FD is not a bad idea, but you have to understand that term life policy only covers you up to 60years old. Above 60 and you're not covered. But when do people fall sick often?

With all the replies jumble up.. its geting pretty confusing here... so mind if we can make this a dialog? Instead of long replies?


As I understand, here's the whole thing dreamer is comparing with (do correct me if i'm wrong) :


1: Investment-linked products VS Unit Trust

2: Whole Life products VS FD

3: Msia Term products VS USA Term products

My opinion :

1: ILP sells on protection needs more than investment needs.

2: There r whole life products which offer way higher return than FD with minimal protection

3: What country are we living in?

afaik, if you buy investment link insurance, its like double paying the commision/fees invovle in investment.... i thnk dreamer has told manny times already.



this quy are getting nuts.....

1. of course u will choose ILP... more commission... lol
2. any prove? some calculation would b nice
3. so, u are saying we shud compare between company in Malaysia?

http://www.insuranceinfo.com.my/

The best place to read up on which type of insurance best suit your needs before making a decision.

IMHO, the main reason when buying any life insurance is because you want the protection.

1: ILP = Term+Unit Trust, exactly that.
You will be charge exactly like a Term insurance with zero returns on the portion allocated for COI while you will be charge the same fees and management cost of buying Unit Trust on the portion allocated for Investment. The cost of the convenience factor involved in ILP is almost negligable in most cases which ranges from RM 3-5 for annual modes.

2: Whole life products can be of 2 types Participating(WLPP with higher premiums) where you participate in the profits of the life insurance company while Non-participating(WLNP with low premiums) which does not. Both provides protection all the way up to age 100.

WLPP = Term+Dividend. Comparing the data of average FD rates with average dividend payout over the last 25 years, they are almost similar with dividends being slightly higher. Top insurers in the industry will almost always outperform FD rates. Cater to those with slightly higher budget.

WLNP = Term+Savings. Similar to putting your money in the savings account of the bank. Cater to those with lower budget.

3: Term products. The basis of all insurance products. Pure Protection with zero returns which offers insurance protection for a limited period only, in most cases up to age 60-65. Nowadays you also have Return of Premium Term insurance, which you still get back some part of your money. The closest you can get to FREE insurance.

Insurance coverage is a highly personal decision. Some people simply want a basic, affordable term life policy and for others, it doesn't fit their situation, needs or budget.

If you are sure that you can put aside money consistently in the bank for 15 to 20 years without even having the slight urge to spend some of it then yea by all means get a pure term. But if you think that you wont have enough willpower to do it, then get a whole life and insurers will help you put aside that money.

1. I sell ILP for its medical protection (medical card with return), not its investment feature. I advise ALL my clients about this.

2. Certain whole-life product offers higher return with minimal protection, and this gives higher return than FD. Too complicated to write here. PM me if wan to know, we meet face to face.

3. I'm not saying we should compare companies in Msia. All company has almost similar products because the products approval comes from Bank Negara Malaysia which regulates insurance in this country. We just need to live with the best of what we got.

I beg to differ, you do not pay double the commission and fees. As stated in an earlier post of mine about ILP. You pay for a 2 in 1 product. You pay almost the same fees when you buy a Term + Unit Trust, the cost of the 'convenience' factor involved differs from each Insurer. Some may charge more, some may charge less but nonetheless it should not even come close to being double.

For illustration purposes, ILP cater to those people that like to shop at 7-11, 'convenience'. Do you pay double the price compared to shopping at Giant? Definitely not, but yes you do pay slightly higher.

1. Yes ILP has a higher commission overall compared to Unit Trust because you are basically buying a 2 in 1 product. If you would to add in top-up money, it would be the same as buying UT 5-7% upfront charges, 1-1.5% fund management charges. Etc.

2. I would be more than happy to show you some data, but sadly information like these are very sensitive and strictly confidential which are not supposed to be distributed.

But if you were to go to the bank negara website at www.bnm.gov.my, you can roughly gauge the average Interest rates of FD for the past 20 yrs is almost about the same as the average Inflation rate of around 4%. Banks are the ones that has always been earning the most of your money. Top insurers would mostly give higher dividends.

Gone are the days when Banks are just Banks, Insurers are only Insurers and Stock Brokers are just Brokers. Everyone wants a piece of the pie, everyone's trying to step over each other's boundaries.

To tell you the truth, commission for ILP is not that high for consultant. I could get more commission if I sell those traditional policy. Anyway, others company might give different rate of commission on certain products

These words are so true. Anyway, it just happens as for like granted. No body could change it. What we could do is only adopting it and face it.

After a careful read of the thread, as for the investments link products. I dun have any comment. Got market value? There got the buyers.

This post has been edited by edifgrto: Dec 9 2006, 07:05 PM

do you actually know how insurance company operate ? Please understand it, and you will understand what we are talking right now.

Basically insu company jumble them up, so they can earn more.

Why do you need insurance company to help you save money? Moreover their return is ......

Well, diff ppl has diff needs.

Business man got a lot of ways to avoid tax ...
if u can earn 100k a year, then startup side business, and use it to avoid tax legally. A lot business man, apa pun own by company de.

?! May I know whom you talking to?!

Since my post just on top of yours, i assuming you are referring me in your post.

Of course I agree with Investment linked insurance. Can have insurance, at the same time can have investments too. Like what other people said, paying higher lah,... whatever commission lar. Does not bother me much. As you said, different people different tastes. So long as I got the insurance. Lost all the amount does not matters...

Banks nowadays sells all kinds of insurace after they merge up with insurance companies. In fact, my company is a subsidiary of a large bank

So now bank 'pau kah liao' everything... ah long, savings, fd, investment, insurance, credit card, etc etc.. whatever that go anything to do with $$$, bank have their share on it.