Rm15k/mth income for Rm170 premium? Sure bo?

This post has been edited by roystevenung: Apr 1 2013, 08:53 PM

my point exactly...

Furthermore, pay till age 70.

Assuming you bought the policy at age 30, that is 40 years, $180k x 40 years equals to one very pissed off insurance company..

No, medical card does not work like that. For a medical card that is guaranteed renewal, if you've already made substantial amount of claims, the next policy year the annual limit will be refreshed, and you can claim up to the maximum lifetime limit it allows you to do so.

For a medical card that is not guaranteed to be renewed, once substantial claims had been made, the next year even if you are able to pay for the premium, the insurer will deny the medical card.

However, do note that once a substantial amount of claim has been made, there is a possibility of the condition may be excluded or even rejected for UPGRADING or getting a SECOND medical card from the same or from another insurance company.

If the claim is under Critical Illness claim, policy with waiver will also waived the future premiums paid, subject to the terms and conditions as stipulated in the 36 Critical Illness.

Waiver of premiums here means the insurer will take over the policy and pay on our behalf and it does not mean that the policy is FREE.

For example, if the person was diagnosed with cancer at age 30, survived it, and the medical card is up to age 80, the premiums will be waived till age 80.

However, at older age the insurance charges may still go up and if there is not enough funds to cover the increased insurance charges, we are still required to do top ups in order to maintain the policy.

Hence, if the policy is with a large Critical illness being attached to the policy, claiming that out would 'free' up the premium and the premium paid by the insurer will automatically be allocated to buying you even more units into your cash values.

That would at least provide some peace of mind that the policy will not need to be top up at later years.

/promo Prudential medical cards are guaranteed to be renewed

This post has been edited by roystevenung: Apr 8 2013, 08:42 AM

Question
1. Please describe your job in maintenance. Is it more towards manual work or just sipping coffee while ordering people around?
2. You did mention you want term and at the same time would like it to be as flexible as Investment Linked Policy (ILP). Sorry, its either term or ILP, not both. Only ILP is able to be upgraded in later years, provided we are still healthy, of course.
3. What would be your comfortable budget per month in RM?
4. Deductible RM300 means should there be any hospitalisation, you need to bear Rm300 per disability over a period of 90 days. Zero deductible means full claim.

Please Pm to me your email address so that I can email to you the quotes once ready.

This post has been edited by roystevenung: Apr 9 2013, 12:28 AM

I am replying from Tab kind of hard to do in line.. once I get back, ill email the quote from my notebook.

1. Noted.
2. For term, once you are retrench and not able to pay the premium after 30 days due, the policy will lapse since the policy is not able to accumulate any cash values. At older age when the insurance charges goes up, you will need to standby that amount if you have not accumulate it in your policy.

Term is not able to be upgrade and not able to attach with any waiver of premium, for example if we are diagnosed with a critical illness and unable to work, who is going to pay the premium?

Of course when anyone already had CI and without any waiver the insurance company is MORE THAN HAPPY to kick you out if you are not able to pay the premium as the chances of claiming is higher, dont you agree? I am sure you do not want that to happen, would you?

3. Your budget is noted.

4. Yup, the more you can afford to absorb the bill, the cheaper the insurance charges it will be. We also have deductible RM3k and deductible RM10k. I shall explain how it works in my email.

Thanks for the reply. I will get back to you by tonite. Currently still outside

This post has been edited by roystevenung: Apr 9 2013, 09:08 PM

^ let him share. But most importantly is what is stated in the contract ..

But stay out of insurance as investment.

Okay, may I know what kind of advise you are looking for?

For Prudential, there is Pruflexi med with zero deductible which is full claim.

An example of how the process for claiming insurance or using the medical card is as follows:-

Example ... Kidney Stones on right kidney.

1. Client went to normal clinic and complaint of severe pain at the back and the doctor A suspected it is due to kidney stones and referred the case to a specialist. The consultation charges for Doctor A is Rm150. This is to be paid by the client upfront. Keep the receipt for reimbursement by the insurer later.

2. Within 90 days of seeing Doctor A, the Client went to see Doctor B and based on the test results Doctor B confirmed it is kidney stones and requested the client to get admitted.

However client does not like the Doctor face, no handsome and went home and consulted her friend on other hospital. Doctor B charges Rm250. This is to be paid upfront as well.

3. After few days client went to see Doctor C as the pain is becoming so severe that she cant even walk. This time she go ahead and operated. Prior to admission the hospital will collect a small deposit ranging from Rm300-Rm500 even if you have a medical card.

After surgery and able to be discharged the hospital will provide the client an itemized bill and the bill amounts to Rm15k as they are using laser to blast the stones.

The Rm15k bill will be paid by the insurer directly to the hospital. When being discharge the client can claim back the RM300 or Rm500 deposit that she had paid earlier from the hospital.

A week after discharge, she went back to follow up. The follow up was okay, and Doctor C consultation charges & medicine cost another Rm 350. This is to be paid by the client and reimbursed later.

So total that the client need to pay and claim are Rm150+Rm250+Rm350. Upon submission of the claims, the cheque for for Rm750 would then be paid to the client, which is normally within 3 weeks.

Do note if anyone that need to be admitted without a medical card , the deposits would be higher, depending on the severity of the medical requirement. For example for flu related symptoms Rm2500 while surgical Rm5, 000 deposit is required.

/Above is true story

raph what is your advice for him since you are from AIA?

jumping_jax Rm1k per year for AIA plan for RM50k seems a lot. Are there any other benefits attached to it? For example medical or critical illness? If you could scan the benefits page here, most probably you would get a better advice.

Just dont do anything yet without knowing what you are giving up.

This post has been edited by roystevenung: Apr 25 2013, 03:02 PM

Its clearer now and as I suspected, the premium is also inclusive of a hospitalization and surgical plan. Since you already have an lNG medical plan, this H&S plan would be rather outdated due to the medical inflation.

1. Room & Board Rm90 day
2. Per injury Rm1500
3. Surgical Rm3k
4. Outpatient Rm250
5. Anaesthesia Rm 900
6. Doctor consultation Rm45

You could ask the AIA agent whether it is possible to drop the H&S plan and increase on the life cover or even Critical illness. As you had mention you would like your wife and mum not to have to worry should you 'kena lottery' even though you are not suppose to

But do calculate a comfortable budget vs the amount of income protection needs before deciding on the value to be insured. For example, your AIA has Rm50k. How long do you think they can live on with Rm50k these days? It all boils down to your commitment and minimum expenses.

Do a cash flow of your income vs your expenditure, detailing what is MUST have and what is NICE to have. Then decide on the duration before the insurance money is able to last.

Which is why I said, drop the medical but maintain the life portion. You are now 25 year old and even though the premium increase is not significant due to you are still young, you should _not_ cancel the AIA life plan and take up another.

Instead you should maintain the AIA RM50K and buy another to add on (if the plan is not able to be upgraded).

The reason is simple.

1. If you were to cancel the AIA RM 50K and buy another RM 100K with Insurer B, you are actually starting the premium allocation all over.

If you look at the insurance proposal, the first 6 years the 'cash value' will be slow in terms of accumulation. For example if you are paying RM 2000 per year, the first year premium allocation may only be 40%, and slowly goes up to 100% on the 7th year onwards.

This means for the first year RM 2K x 40% = RM 800 will be used into buying you units.

Your AIA plan already has RM8K inside and should you were to cancel and get a new plan, the premium allocation starts all over.

* The premium allocation table varies from product being selected.

2. All insurance product comes with waiting period - should you were to cancel the AIA Rm 50K and get a new one, should anything were to happen within the waiting period, for example cancer (choi!) before 60 days waiting period is not payable on the new plan.

--

For Life (death & total disability) & Critical Illness Cover it is recommended to have high cover when we are working (based on our affordability and income).

However, it is recommended that you reduce the cover over to medical once you are retired as the insurance charges is rather costly if you would like to maintain the high cover at older age.

Also our children may had also grown up and working, thus relieving us from being responsible to them.

At older age we are more prone to sickness and when we are retired, like any company benefits like car, petrol allowance, medical insurance, it ends there. Hence we will have to rely solely on our medical.

Total premium paid = Rm2, 017 x 20 years = Rm 40, 340

Total cash value after 20 years = Rm 55, 298

Return of Investment = Rm55, 298 - Rm 40, 340 = Rm14, 958

Return of Investment Percentage = 37.08%

Simple Annualised Return of Investment Percentage = 37.08% / 20 years = 1.854% per annum

Replying from Tab susah mau guna excel.

It depends on what plans did you buy and the terms (duration of the coverage) associated to the plan. For example if the medical plan is up to age 80, the premium is best to be paid until age 80.

The same question should also be asked for your car insurance, ie how long do I need to keep paying for my car insurance? Well the answer is so long you want to drive the car and provide cover. Once you stop payment and since car insurance do not accumulate cash values, the policy will lapse.

Feel free to visit my blog for more information.
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The compounding affects had been included in your cash value of RM 55,298, no? See Pink Spider's explanation, both can be use to gauge but one is more fair.

If you are looking at pure investment, you are advised to ask the sifus at the investment thread, not insurance thread. Insurance comes with insurance charges and is for protection and it is not pure investment.

It is mind boggling the amount of people still fall into the trap of insurance for savings, especially at banks and worst still, they do not even know how to calculate the returns nor bother to ask in more detail before ink on the dotted line. Insurance is for PROTECTION and NOT investment.

Never ever think of claiming from insurance (unless there is an unfortunate event like lost of life/CI/disability/medical/accident), as anything that the insurer say will pay EASILY the insurance charges will be high, maybe not now, but later.

An example is the hospital income, which has been abused to the point that insurer had no choice but to increase the premium. Ever heard of this line, "Duduk Wad Pun Dapat Duit?"

Contrary to popular belief there are no such thing as FREE things from insurance. Anything that is 'free' is already build in with insurance charges. The better the benefits the more charges you are expected to pay.

The higher the insurance charges is, the policy may not be able to be sustain at older age.

Noted. That reply was intended for others whom are looking at insurance as investments or at least they know what they were getting themselves into.

The exam should be easy if you read the book, no sweat.

Amboi, big logo you have there

This post has been edited by roystevenung: May 15 2013, 09:16 AM

1 year and renewable means you plan to have it for more than 1 year right? Can Pm to me your email? Ill run the quote later. Thanks

This post has been edited by roystevenung: May 17 2013, 02:13 PM