Civil,

<< Above 60 and you're not covered. But when do people fall sick often?>>

You buy medical insurance to cover medical need. You do NOT buy life insurance for that.

<<you have to understand that term life policy only covers you up to 60years old.>>

Don't you know some basic stuff about life insurance?? Unless you are still working after 60 years, you have NO salary income. You do not need life insurance. The same reason that you do not buy life insurance for home maker.

Zarth,

Now, this is a FAIR and REASONABLE statement.


<<To tell you the truth, commission for ILP is not that high for consultant.>>

Civil,

Nothing personal. You are another insurance agent. Have you ever heard people say that they earn too much salary?? They should get pay less??


Dreamer

Hi,

The bottom line is very simple. If ANYONE is buying Non-term life insurance aka life insurance with "savings"/"investment" feature, insurance with more than protection feature, he/she better know exactly what they are buying and how much it costs.

Get your insurance agent to break out the cost for those features and how much is the actual return for those extra money that you pay. Audit those number by yourself or get someone else that you can trust to audit those numbers.

You are spending/buying something that costs almost as much as a car/house. Be very very careful and cautious. And, most of those insurances have severe penalty if you ever change your mind.

Buyer beware. I have SEEN too many people buying too much insurance and they have NO idea what they are buying and how much money that they lose every year.

There are plenty of insurance agents that have NO IDEA what they are doing. They are ONLY selling whatever makes the most commission for them.

Dreamer

for youngster like us who just graduate....

the only 1 insurance needed is accident insurance...

it's cheap... while other kind of insurance forget about it...

since starting paid is not afford to pay for the premium...

too bad for me... my aunty is insurance agent... recoment me buy this n that... ended up paying 200 each month......

im broke... no extra money left...

Get insurance when young and healty. Premium increase as age increase. PA covers only accident. Howbout medical?

If u kena denggi, go hospital also need to spend RM3k.
Rm 200 cheaper or RM3k?

What if its other illness?


If RM200 is too much, you can probably ask ur aunty to reduce it to ur comfortable level at the moment. (If its ILP)

Why do you NEED accident insurance?? In most cases, if you have a job, you are covered. Ditto for medical.

Dreamer

You sure every company got insurance coverage for their employess? Alot of companies i've work with never insures its employess. Even if they do, will the proceeds go to the employee or employer? How sure are u on that? Ditto for medical.

mine 1 is not accident insurance... but medical...

brought 2 years ago... where the premium is fixed... fixed for life although ur age is increasing...

beside this, i also got saving insurance... 720 annually... this 1 got include the critical illness....

this idea was thought by my lecturer lol... u take PA becoz afraid of something happen to u in accident... who will taking care of ur beloved 1...

Vin_ann,

Do you mean you have dependent aka you are supporting someone now?? If not, why having accident change anything?

Dreamer

<<In MOST cases, if you have a job, you are covered. Ditto for medical.>>

1) Listen carefully, I did NOT say EVERY cases.

<<Even if they do, will the proceeds go to the employee or employer?>>

Don't someone should find out those stuff before buying ANY insurance?? What kind of coverage that they have at this moment.

If you are GOOD insurance agent, you would have ask your customer to find out those answer before they buy ANY insurance from you.

DO NOT JUST THINK ABOUT SELLING. Help and actually give good advice to your customer.

Dreamer

Yes i do ask my customer to do that because i don't intend to duplicate what they already have.

<< Get insurance when young and healty. Premium increase as age increase. PA covers only accident. Howbout medical?

If u kena denggi, go hospital also need to spend RM3k.
Rm 200 cheaper or RM3k?>>

Then, don't make this kind of statement without saying always check your company insurance coverage first. Be balanced and complete in your posting.

Dreamer

I don't find any conflict in my statement. So now u r saying everytime i talk/post i have to say 'Always check your company insurance coverage first' ?

Then mr Guru, tell me o what i should tell my customer. U r the great one in insurance knowledge. Bank Negara department who regulates insurance industry should listen and follow everything u said.

Dreamer,
To tell the truth, group type of insurance is not enough to cover your medical expenses if you go to private hospital. Companies would normally covered their employees with minimal coverage. Unless you're a keyman to a certain company and that would be a diff story becoz they could insured you with a policy that only suit you.

Like ZiyiIsmyIdol told, we do not want to duplicate what the customer already have. As for me, I dont sell medical insurance to the govt staff because they already have it. But sometimes they are govt staff who still wants the medical policy because of other purpose. Of course I will advice them on that and try to talk them to buy different type of policy such as retirement etc.



Why want to have too many policy where you can attach it as 1. You can attach medical rider onto your life insurance policy.



Some people consider buying a life insurance as a legacy. With the insurance money, he can rest in peace as he knows the money will help his loved ones to continue live. Or maybe to make sure that his mistress does not suffer a loss on his demise or disability.

This post has been edited by Civil: Dec 10 2006, 01:40 PM

Well Civil, we also need to understand that there will be ppl who are hard-core non-believer no matter what we say or promise we do. I guess we met one here. So like the seasoned senior managers said, 'NEXT'.

No doubt Dreamer is not a believer but what he/she is telling has its turth fact behind it also that someone can't denied it. I am just stand at neutral point to view this issue.

That's why we often heard people said insurance 'lie' or 'makan orang' when something happens to them and can't claim the insurance or claimation is not as expected when they bought the insurance at the first place. I think the major fault are because of customers don't understand fullly the insurance intention and coverage as well as agents also don't clear about it.

I have come across someone buying medical insurance then fall sick being emergency hospitalised to one nearest private hospital but this hospital is not being included in his medical insurance coverage so can't claim at all. Then who's fault is it?
Surely, he will blame the medical insurance has cheated him while insurance company said they can't do anything about it.

Discussion about the insurance issue here definitely will benefit all of us.
No doubt, insurance is essential but different people need different type of insurance eg. a single non married and has no dependants on him definitely doesn't need any life insurance,serve no purpose. Just like previous poster in this forum said graduate need a PA insurance, just doesn't make sense, medical may be or should be the priority but not PA first.

Though you might not have a wife & children as dependents when you are still young, do not forget that you still have your aging parents. In most Asian countries, it is our culture to take care of our aging parents as how they took care of us when we were much younger.

Moreover, asian parents tend to pamper thier children more compared to those in the west. Most of the time, they would use whatever earnings they have and give them the best education, buy them a car, buy them a house and whatever that is left would most often not be enough for themselves.

For example, a college graduate at the age of say age 22 with parents aged 52 whom will be retiring in 3 more years say age 55.

They gave you the best education they could afford and also bought you a nice car for your graduation present since you're their only child whom they love so much.

When they retire at 55, they probably would have thier own retirement savings and EPF to last them for say another 10 years which is fair enough considering research shows that 70-80% retirees spend off all thier EPF monies in less than 3 years. They probably would hope that thier beloved son would at least help take care of them when they retire.

1st scenario: Something happens to thier only child, he died of an accident. According to statistics, the age bracket with the highest rate of accidental death is between 18-26.

What are the parents to do? Not counting the emotional impact, they would have suffered a financial lost as well. If they have already retired, they would most probably be force to come out to work again if anyone is willing to hire them. Fine they would still be able to survive, but another problem comes in when they live too long. Would that 10 years worth of savings be sufficient? In Malaysia, there are not many retirement provisions for NGOs. Who is to take care of them?

2nd scenario: Accident happened, but instead of death, you sufferent total and permanent disability.

This one is worst of, instead of just a financial lost it also became an extra financial burden to take care of him. You probably have socso and some group insurance your company provides and they pay you say 100k and maybe 500 a month income for the rest of your life. The average lifespan of a male is up to 70-75, so that's roughly 50 more years to go. Do you think the 100k and 500 a month is enough? Do you think 200k and 1k a month is enough? How much is the cost of taking care of a disabled person? Cheaper? Higher? That is up to you to decide.

So if you love your parents as they have loved you and would like to care for them and ease thier burden if anything were to happen to you, then get yourself proctected. Go for moderate-high protection. Then as you grow older with your own family, go for high protection with some form of savings & accumulation for retirement. When you are retired, a bit of protection with good medical coverage is recommended.

Insurance is a like a double edge sword, people complain they lose so much money paying premiums, but when something happens to them they regret that they did not buy more in the first place. My advice? Buy some be it PA, Life or Medical with whatever you can afford.

In many cases i known, ppl say insurance 'cheat' money bcos when a claim happens they could not get the max benefit. It can be the agent's fault, or it can also be the customer's fault.

For example, a medical coverage of RM150 for room & board per night.

Then when a person is admitted, he want to stay in room of RM300 a night.

When bill come n insurance claim come, he will be blasting the agent 'HOWCOME I STILL NEED TO PAY? I GOT INSURANCE!!!"


Fault:

1.Agent fail to explain clearly to customer its features and limitations.

2.Customer choose to ignore its limitation.

Even some of my customers, after explaining them many many times, after a week pass they will forget everything.
I also know that many times after showing n giving prospects brocures and presentations, they go back home and put it aside and forget about it.

For those who want to test my statement, try asking your friends and family, "What does your insurance cover? What does it do? How much it covers?"

i guarantee MOST of the time, ppl don't know what they have.

This post has been edited by ZiyiIsmyIdol: Dec 10 2006, 04:24 PM

after reading all ur posting...

i need to rethinks about insurance... need to get back my aunty to explain to me...

I disagree with your opinion that when you're a retiree or if you're a home maker you do not need life insurance.

To explain why, we first need to understand what are some of the cost involved after a person's death. Bear in mind these will be NEW expenses incurred by your loved ones at death.

Medical & Hospital Expenses - Still need to pay the hospital when you die or they dont give you the corpse, no pun intended. Can be covered by medical insurance if you've bought any when you're younger and healthy. What if you dont have medical insurance because you have no income and lasped the policy because you dont feel its worth it as premium gets higher and higher due to age. So who pays the bill?

Funeral expenses - Relating this to asian culture especially the chinese, how much do you think this would cost? Go check out the packages they offer at Nirwana Memorial and you'll know what I mean. So who pays for it?

Probate Court costs & Lawyer fees - If you have watch any HK chinese dramas, then you'll know that when a rich person dies often the siblings, stepmothers and the long lost illegitimate child comes out of nowhere and all fight over the inheritance? So yea, there are some cost involved when getting a probate from the court as well as hiring lawyers and such to settled things. And yes who pays for it?

Taxes - Surprise! Yes, here comes the goverment to come and collect taxes when you die! Yes, you do get taxed even at your death! Omg more to pay?

Debts - Ranges from credit card balances, mortage loan, car loans, education loans, outstanding bills, the mahjong money your wife owes the neighbour. Etc. May or may not apply to some. Do I really have to pay?

Child/Home Care Fund - This one relates to a home maker, meaning husband works while wife stays at home cook, wash, clean, fetch kids to school and back assuming you don't have a maid. So who will replace your wife's child care and housekeeping services? your mother? relatives? a new wife?? Most would solve this by hiring a maid and yes more cost! Want a pretty Filipino maid instead of an Indonesian one? Surely, just have to pay more.

Alright now down to business, so really who pays?

If you're a retiree, most probably it will come from your own coffers, the hard earn retirement savings that you and your wife kept all this while to enjoy life till death do us part. If this savings happen to be for both of you, then the cost involved will be deducted from it, meaning less for your wife. If it is a separate retirement savings, then great, you can use your part of it to pay it all off and if there's still any extra it will be for your wife, children and grandchildren etc.

What if there's not enough left? Then the children will have to bear the cost. What if they themselves are financially tight too? Grandchildren preparing go overseas, need money study, etc. Cut cost? 'CinCai' bury anywhere la, as long as cheap? Is that what you want? I'd prefer to be burned and ashes spread into the sea or maybe shot out into space, think i got the idea from a movie.

If you're a home maker, then most probably your spouse would have to bear the new cost above. These are all immediate cash needs, so unless you have saved up a good amount of emergency fund to cover all these immediate expenses without having to put you into more debt while still maintaining your family's current standard of living, then great for you. What if you dont have that emergency fund and do not want to borrow? You would have to sell your assets, liquid assets that you have like FD, Shares, Unit Trust etc. I only mention liquid assets because your property cannot be liquidified easily and therefore is not a good solution. If you choose to sell assets, you're already at the losing end.

A simple life insurance coverage could potentially solve all the above problems easily without affecting your financials drastically.

Does retirees or home makers need life insurance? That is up to you to decide. Personally, i think the only person in this world that doesn't need life insurance is God himself. Why? If you're a christian then you'll know that God himself is also selling insurance! Yea, he sells an insurance called eternity insurance.

ziyi is like pak lah running from TDM's question. just kidding


neway i'm interested with medic insurance but totally no idea bout it. wat differentiate between every medic insurance? is it cover all type of sickness? is it onli cover hospital bil or also compensate for disability cause by the sickness? if any agent here could provide ur package (without giving the package name) here so we can discuss it..

oh yes onother question. for the same package, is everybody need to pay the same amount or depends on condition too. i mean, if i'm working in industry which expose to dangerous chemicals everyday, should i pay more becoz of the more risk involve?