harloo~~

i have insurance question too ask..

my insurance monthly pay.. price fix no increase..

then my fren say hers insurance montly pay.. increase every year..

mayb i what the different? we take same plan ( all most, medical card, life just different company)

we both different insurance company so better dont slip the name out
i just wanna know if there is any different ..

thanks

Correct me if I'm wrong Yahiko, but is your friend's insurance a stand alone plan (SAP) while yours is an Investment Linked Plan (ILP)?

Irrespective of whether you get SAP or ILP, the insurance charge will go up by age _irrespective_ of when you get it. If you get it at early age, your insurance charge is cheaper, but it'll gradually increases as well.

Suppose a person who is age 25 takes up a policy and pays Rm 200/mth. At age 25 his insurance charge is low and the premium of RM 200/mth is able to cover the insurance charge.

Assume that he don't do any upgrading/changes to the policy and now he is 70, his insurance charge at age 70 may be as high as RM500/mth (the figures shown here are for illustration purposes only and may vary from the actual).

So how come he is still paying Rm 200? The answer is the RM 300/mth is being cancelled from the cash value that is accumulated from age 25 ~ 70.

Some agents may tell you that this has savings element, yes its true. If you were to withdraw the cash value and one day decided to retire (assuming no income after retirement), who is going to pay for your insurance? Generally we retire at age 55-60, while most of the medical cards nowadays needs to sustain till age 80.

That is another 20 years of premium. 1 year Rm 2400, which works out to RM 48K for 20 years.

At younger age before we retire we may need the life/CI/TPD coverage but at older age once the children had grown up, we may choose to swing the life/ci/tpd cover to take care of the medical.

That is also why we should get the insurance at early age so that we have ample time to generate more cash value and to take care of the old person we are going to be.

Do not get confused with the term "Investment Link" = Investment. HTH

This post has been edited by roystevenung: Jun 6 2012, 12:47 PM

oooooooooooooooooooooooo then i paham liau!!

ok u are right.. mine is ILHP

Even though the plan may look similar by far they are identical.

Most ILP have a rider to waive future premiums (if diagnosed with CI/TPD) while stand alone plan _may_ lack of this feature.

Advice your friend to get a second opinion on what is covered and most important what is lacking and take another plan to cover this shortfall. Don't worry, we are trained not to simply cancel people's policies.

I hope you know who to call to get the second opinion

Hi, in your opinion, do you think it is advisable to add in the rider to waive future premiums if diagnosed with CI/TPD? I have a feeling that it will only be useful in the case of TPD. For CI, it has to be at stage 3 for the waiver to kick in (if not mistaken) and with a CI at stage 3 it is difficult to get fully recovered, hence shorter life thereafter. true?

Instead of giving you my opinion, I let you make that decision based on a real case.

A friend of mine who was a HR Manager of was diagnosed with throat cancer (due to smoking). Sure, first month even the boss visited him, friends too. Two months down the road he needs to undergo radio and subsequently chemo was prescribed. He wasn't my client, but just the drink coffee friend.

Three months later he was shocked to get a letter that his position needs to be filled and he is temporarily moved to Maintenance Dept. Out of frustrations, he tendered his resignation.

Now, imagine his situation, no job, no income, bills pilling up, home loans, kids school, credit card busted, no more company medical insurance cover!

Hence he have to rely solely on his personal medical, thank god for the waiver! Not only it waives future premiums and get to use the medical card, his children's policies are also waived until they are 25 age since he is payor. The wife's medical is also waived!

After 6 months of torment and by pure luck, he found another job. He was thankful of the insurance payment and payor. Now can you imagine if he haven't had that payor? He was out of job, no money, how was he to sustain all those policies?

In addition, certain illnesses like Stroke/paralysis one needs to show evidence of being having stroke/paralyze (records for physio, home nursing etc) for 6 months before one can claim out the CI.

If your client is bedridden for 6 months with no income, I wouldn't dare to be the agent that comes knocking on his bed asking him to pay the premium. WOULD YOU DARE?

IMO, it is definitely a must to add in the waiver. Insurance is about protection.

Coming back to your cancer, as long as there is evidence of malignancy, the CI under cancer will be payable, not necessary stage 3 (cancer).

The rider to waive future premiums is not only for your own policy but for the ones you love...

roy, got a question

i got a friend when he buy insurans declared non-smoker

then later he start smoking, heavy some more

if later he claim for sickness related to smoking...how?

and how about claim for things unrelated to smoking...e.g. death by accident, natural causes, etc?

thanks in advance

its his duty to declare his smoking status to the company . . .

If claim related to smoking example lung cancer, company have the rights not to pay the claimable benefits
but if due to accidental or natural causes should be no effect

but he started smoking years after he bought the policy wor

As Colaboy mentioned its the client obligation to declare any changes to his lifestyle.

Smoking status will affect his premium (non-smoker pays lesser premium) as its higher risk of getting smoking related illnesses.

Another thing that will affect the premium would be the occupation. For example if someone is doing office admin work (Class 1), suddenly have a part time job as a construction worker or lorry driver (Class 4) and met accident, the insurance company may dispute on the claims.

Well if a person who is from Class 4 and now gets promoted to become office Manager (Class 1) you'd definitely want to go to declare because this will bring down your premium significantly.

As for gender change, so far I've not have any experience in this

This post has been edited by roystevenung: Jun 7 2012, 08:53 AM

so in cases of claim, the co will adjust the payout, or totally refuse to pay?

If there is evidence of clear mis interpretation of the smoking status, then the insurer is non-obligated to pay the claim. Most likely a court settlement is needed.

If the policy is within 2 years, the insurer may opt to refund the premium paid minus any claims.

It is best is to declare to ensure smooth claim process.

I think there seems to be some confusion here

We need to identify the type of insurance we are talking about

Personal Accident (PA) and Hospital & Surgical (H&S) are considered annually renewable policies
unlike the other life policies. That is to say, the "renewal" is annual, be it a stand alone or a rider attached
to another policy. This is important because, except for the above 2 policies, what matters is
what is material WHAT WAS TRUE AT THE TIME OF APPLICATION

Eg If you bought an insurance policy and you were not a smoker at that time, then you will be
charged non-smoker rates. However if later you picked up smoking, then the insurance company
cannot do anything about it because, at the time of application, you were a non-smoker

On the other hand, a smoker who pays smoker rates and later stops, can appeal to the company
for non-smokers rates, and the insurer can consider based on length of non-smoking, doctor's report (your cost!), etc

For PA, especially it is different. PA is a renewable policy, where Occupational Class and risk is important
The insurer will not be concerned if you smoke or not. They are more interested if the job risks have increased

Example Clerk - Class 1, Lorry Driver - Class 4, Lumberjack - Class ?? (decline coverage). Note that
the insurer will take your money for renewal every year, it is only during claim that these issues will crop-up and you
might feel "cheated" when the insurer was actually correct in treating it like that. Then there are also exclusions
of some insurance policys. Eg some policies don't cover death due to fumes or poisioning, scuba diving, mountain climbing... one or two don't even cover if you have an accident on a motorcycle

Just because you don't fill up a form every year, don't think the insurer must accept your renewal every year
They can turn around and say that they don't want to sell the PA anymore and not take your money

H&S is actually a grey area, now with insurers giving Guaranteed Renewal. It will depend on the policy terms and conditions as to whether your job will affect your insurability

Please take note, that in all aspects of insurance, a policy holder cannot be reckless, or partake in any illegal activity
not be covered for any cosmetic activity ( because it is not really necessary) or be not covered during war

Will your life insurance pay if you got shot by police in a robbery?... are a soldier who died in a war?.... lost both your legs because you stepped on a landmine? Please get your insurance agent to reply you and share in this forum. It will be interesting to see the answers. Although you have a critical illness insurance, the insurer will not pay for your liver damage because of alcohol abuse

On a final note, should a policy lapse due to non-payment and you revive (reinstate) it again, then the "new / present" are important now. The insurer can refuse to reinstate or can load you due to riskier situations
Eg charge you loading because you have hypertension or you smoke know

This post has been edited by rekamaju: Jun 7 2012, 06:10 PM

Reka, please clarify the above statement. Suppose today I'm non-smoker, take up a life policy with RM1M CI and the policy got approved.

After 1 1/2 years down the road I smoke heavily, developed cancer (stage 1 malignant) and doctor's report shows that cancer was due to smoking.

Per what you said the insurer must pay RM1 M because they can't do anything about it? Sorry but I'm confuse. No offense ya.

I signed up for a low cost PA - RM12/mo, and some years an annual travel policy 0f RM218.

Is there any better way to spend that on some other insurance product?

111

In my opinion, P.A is very cheap thus it should be wise to buy as usually young people only die/tpd due to accident. (touch wood)

If you have extra money.. with just as low as RM110 per year (RM 9.16 per month)... why not?

Great Eastern is offering RM110 per year with RM100k sum assured, sum assured is 10% yearly provided no claim for a maximum of 100%.

One of the cheapest if you are looking for a basic P.A Insurance.

Hi, maybe any Prudential rep can help me on my question.
I bought a Prulink Assurance with monthly premium of 500 starting Jan 2005. I received my annual report for my policy but I think it is not good enuf compare to a similar policy of my sis fr other insurance co. which having the details monthly statement. So my question is, would Prudential give me monthly statement if I ask for it?

I bought my policy fr my former colleague who are no longer working together. Last year i've asked him to help me get my annual statement which normally never later than Feb but he seem not very keen servicing me, I ended up getting it myself, so don't ask me to call him.

Guys, can recommend me the a plan out there which is the best and value for money? 23,male, non smoker.

Hi Dave, what's your occupation and email (for me to send in the quote). Thanks