wat tpd?

mucklampir,

<<for medical insurance, how much is too much? should be below 5% from salary?>>

Are you old or young?? How old are you? How much savings do you have??

Your goal is to buy as little insurance as possible. If you have ENOUGH savings, you may want to focus on buying critical illness insurance and pay your normal medical expenses without insurance.

<<is it wise to pay more to maximise tax relief (medic insurance = up to3k relief)>>

Normally, tax savings is NOT a big deal in Malaysia since our tax rate is low unless you have annual salary of greater than 100K.

Dreamer

dreamer,

25 just start my career. i should say i don have saving yet..

rule of thumb is to buy little insurance as possible. how if one day i realise that i need more coverage. could i just upgrade it(is it possible)? or just buy another insurance with better policy?

any insurance agent,

can tell more about the critical illness insurance. is it more expensive?

Depends on your health, age, weight, height and medical history.. Its all up to the underwriting department.






I dont think its wise to overpay your premium on medical insurance only. U can still buy another type of policy which cover beside medical and still get tax relief.

This post has been edited by Civil: Dec 11 2006, 04:14 PM

Make sure you have 3 to 6 months of expense in savings first before we talk about insurance.

Dreamer

Most singles don't really have much savings, so you're not the only one my friend.

As to the opinion of buying as little insurance, that is a Highly Personal Decision and definitely NOT any rule of thumb.

Cause at the end of the day, if something unforeseen were to befall you, and you bought as little insurance as you could, who will suffer? You or the person who told you to buy as little as possible. Will he be willing to give you the money to pay for your expenses or will it be the insurance company?

If I were to offer you Free Insurance, would you want to have as much insurance as possible? Definitely, right? But the fact is Insurance is also a business, and we do not ask you to pay exorbitant amounts of money and then give you peanuts coverage. Instead, we take only a fraction and give you a greater amount of coverage than you yourself normally wouldn't be able to afford or have.

All I'm saying here is to purchase based on what You yourself feel that You Need and can Afford. Who is to say that it is wrong to spend 10-15% of your salary on insurance? As long as you feel you want it and can afford it. Some people whom do not believe would probably tell you that, on the other hand some whom have seen the great benefits of it would tell you otherwise.

When you yourself feel that whatever you have is good enough for you, then you can have peace of mind and not worry about the consequences of an unforseen situation. There's also a fine line between what You Want and what you Need. You might want that BMW but do you actually need it? But you insist on getting it because it is what you want.

Situations does change over time, and yes you can upgrade it or purchase a new policy. That is why a good agent will help you realise that and explain to you the details to make sure you understand, they will service you for life and be a lifelong friend.

This post has been edited by Zarth: Dec 12 2006, 11:40 AM

<< Who is to say that it is wrong to spend 10-15% of your salary on insurance? As long as you feel you want it and can <AFFORD> it.>>

The definition of afford it means you can actual save and invest money EVEN after you pay 10 to 15% of your salary in insurance.

To most people, they CANNOT afford to spend 10 to 15% of their salary on insurance because they will run out of money after buying insurance.

Dreamer

Funny most of the people i know spend 10-15% of their salary on insurance and they r still living a very comfortable life.

U like thumb rule i give u another. It is best to save 30% of one's income as a SMART consumer. Save before Spend. Not Spend then save what's leftover.

So saving 10% in insurance is definately not going to take ur life away. U still have 20% to save and invest in other things.

PS- All opinion shared are individual opinion, does not reflect GENERAL.
Want an answer? Ask 25-50 ppl... then maybe it may hold as rule of THUMB.

Oh before i forget, there are many ppl who spend much much more on ciggies n booz.

This post has been edited by ZiyiIsmyIdol: Dec 12 2006, 12:58 PM

yeah sure


yeah agree, that's why i follow dis topic closely

anybody wan to talk bout critical illness package?

ZiyiIsmyIdol,

1) Most people are STUPID and they are NOT rich. They will never become rich. They overspend on useless stuff. Remember average people are not RICH. You have a choice to be average or rich.

<<saving 10% in insurance>>

2) This statement is WRONG. You are spending 10% on insurance. It is NOT a saving. If you buying insurance as saving scheme, you are saving in a very inefficient and stupid way.

<<U like thumb rule i give u another. It is best to save 30% of one's income as a SMART consumer. Save before Spend. Not Spend then save what's leftover. >>

3) I save 50% of my gross (before tax) income. That is the reason why I have enough savings and I do not need insurance for most situations. But, in my case, critical illness insurance may be a good insurance for me to buy.

Do you understand something very simple?? People need insurance. You do not have to sell people the WRONG insurance or overspend in insurance for you to earn a living.

Dreamer

Actually to most people they CAN actually afford it, but instead of spending it on the things they need, they focus on the things they want.

Some of those things that they want are like the shopping sprees, cigarettes, alcohol, etc. Do they actually really need it? Can they do without it? The decision is thier choice, no commitments, full of freedom etc. So they spend off all thier money and left with nothing to save at the end of the month.

Then there are some which are smarter, they save first before they spend. So at least it helps to control their own spending a bit. So they save save save, and after 3 months, since they felt that they have been good boys n girls and decided maybe a reward would be good for themselves and just that there's this nice watch, handbag, dress, shoe, or that ps2 your friend just bought which you just need to have it because he keeps telling you how much fun he's having. So yeah, the end up spending off what they have saved. This we called it delayed spending, not really saving.

Then there are those which are the most dicipline. Save every month, for years and manages their financials well enough. Do not overspend in anything at all. Saves as much as he can on all things and make sure he doesn't overtip the waitress or even leave any tips at all. So after a few years 3-4 perhaps, so he has a sizeable amount of money, and since he's planning to get married, buy a house etc. where will the money come from? The savings of course. So what happens then? Back to square one again and start saving again because they plan to have a baby and which is great and the cycle continues. This is much better than delayed spending and its called goals saving.

So which group do you think most single young graduates belong to? 1st, 2nd or 3rd? I would think either 1st or 2nd mostly, and If there was a product that could give them good PROTECTION, actually help and discipline them to SAVE and also INVEST it at the same time with the help of professional fund managers with ONLY that 10-15% of thier monthly income, do you think that they can afford it? Can you show me any other better way to teach them how to save, give them the protection they need and also help them invest at the same time?

Those in the 3rd group with better financial knowledge would even benefit greater from such a product since they already know how to manage it.

Would you be interested in such a product? Do you know which product that is? Take a guess, it has been explained before in the earlier posts.

The reason why such a product exist is because, the market wants its, the trends are changing.

During our grandfather's day they save money, accumulate it, then only invest it.

In our father's day its the reverse, they invest first, then accumulate, then only save for retirement.

In this new generation, we Save, we Accumulate and We invest All at the Same Time.

As I said earlier, banks are not just banks nowadays, insurers are not just insurers anymore, brokers are not just brokers. They are all fighting to get the bigger piece of the pie. Everyone is stepping over each other's line of business. If you have a choice, would you stick to the old conventional ways? or be willing to move forward and embrace the new trends in the industry? That choice is up to you.

1) Whole life insurance existed for a long long time. People had overspent on whole life insurance for many many years. It is NOT new. What is new is the packaging of unit trust and so on into insurance? A person really have to know what they are buying now.

2) There are 4th group of people. People that know how to save for their whole life. They DO NOT need insurance with saving option to teach them that. And, that is the group of people that will get rich.

3) I DO NOT DISAGREE WITH YOU on if a person do not have the discipline to save money on their own, insurance with saving and investment option may be a good choice for them. But, that should be the last option since it is the MOST expensive option. A person can do monthly contribution to unit trust and get more for their investment.

Dreamer

Forwarding this question to the Insurance experts here,

Education Fund
Though i am still a long way to go for a marriage but if i do have any child in the future i would want to get an Insurance Education Fund.

I have read in 'The Star' newspaper weeks back, there is this article about Education Fund, the Insurance Experts have said that it costs RM100,000 a year to send your child overseas, where else in 20 years time it will be RM 300,000 annually.

So my question is will it be advisable to get an education fund eventhough there is no guarantee that my child would want to go nor having what it takes to live with the education system else where.

I read this thread with great interest. IMHO there is no point arguing about the superiority of US insurance policy compared to Malaysia. Most of us live here and have to make do with what's offered here. I agree with Dreamer though that it is important for us to understand our insurance needs and the T&C of our insurance policy.

Our insurance policy is written as a contract which covers what the policy covers and what not. The problem, even for those educated, is we are usually not familiar with the medical conditions and terms. I believe it is the insurance agent's job to explain clearly to their clients this very important aspect.

So here are a few questions for the insurance agents here:

1. Do you know at the back of your mind which medical conditions are not covered during the first year of the medical card your company offers? Do you explain this one by one to your clients?

2. Do you know at the back of your mind which medical conditions are not covered at all by the medical card your company offers? Do you explain this one by one to your clients?

3. There are specific conditions. For example, can you claim TPD with one kidney failure? Or two? Do you know for sure? Do you explain to your clients?

4. My wife had a medical condition known as Arteriovenous malformation (AVM). You know what is it? Can claim?

5. Do you carry a medical encyclopedia and study it from time to time to better inform your clients?
In terms of percentage, I believe no other sales person can beat an insurance agents' commission. We buy insurance in the hope to cover our uncertainties. Due to the various conditions imposed by local insurance companies, agents MUST have the knowledge and sense of responsibility to explain such conditions to their clients. Those who don't, consider yourselves as the same "lousy agent" that you'll readily tell a person with bad experience on insurance.

A very small percentage of insurance agents do take care of their clients. These agents, IMHO deserve whatever million-dollar roundtable that they qualify.

This post has been edited by Ranma: Dec 14 2006, 09:46 AM

Ranma,
Yes, Lotsa people worrying about the claim. It's actually simple. Read the T&C if there's any other exclusion in the policy. Insurance agents is not a doctor nor have any medical education background. Therefore, agents only knew the basic staff about medical. However, agents normally will tell the customer, incase in the future the customer have one of the illness that are in the exclusion. He/She may not be entitle to claim. As practice by me , I always give customer the copy of exlusion and what are the illness that are not covered by the policy.

Pre-Existing Illness
"Pre-existing illness" shall mean disabilities that the Insured Person has reasonable knowledge of. An Insured Person may be considered to have reasonable knowledge of a pre-existing condition where the condition is one for which :-

* the Insured Person had received or is receiving treatment;
* medical advice, diagnosis, care or treatment has been recommended;
* clear and distinct symptoms are or were evident; or
* its existence would have been apparent to a reasonable person in the circumstances.

Exclusion:

* All Pre-existing Illnesses must be declared and will not covered by medical insurance.

Specific Illnesses
Specific illness under the policy shall mean:-

* Hypertension and diabetes mellitus
* Cardiovascular diseases and varicose veins
* All tumours, cancers, cysts, nodules, polyps, stones of the urinary system and biliary system
* All ear, nose (including sinuses) and throat conditions
* Hernias, haemorrhoids, fistulae, hydrocele, varicocele
* Vertebro-spinal disorders (including disc) and knee conditions
* Endometriosis, adenomyosis, prolapsed uterus, and uterine conditions requiring hysterectomy (including disease of the Reproductive System)

Exclusion:

* All Specific Illnesses stated above, are not covered for first 120 days (4 months) of the policy irrespective of whether the Insured Person was aware of disability or not.
* Any Specific Illness will be covered beginning with the 121st day after original inception, provided it is not excluded as an Underwriting Exclusion.

Exclusions

This policy shall not cover :

*

All Pre-existing Illness.
*

All Specific Illness for first 120 days (4 months) of insurance, subject to the Pre-existing Illnesses clause in the "Definitions" Section above.
*

Illness that commenced within the Waiting Period of thirty (30) days, except for accidental injuries.
*

Out-Patient treatment not related to in-patient or day surgery, except as a result of an accident.
*

Pregnancy including childbirth, abortion, miscarriage, treatment for infertility and all complications arising therefrom.
*

Conditions arising from surgical, mechanical or chemical contraception methods of birth control.
*

Routine physical examinations, health check-up or any other tests where there are no objective indications of impairment of normal health or any treatment of a preventive nature including vaccinations, acupuncture, treatments specifically for weight reduction or any treatment which is not medically necessary.
*

Treatment for Congenital Conditions and any physical birth defects arising out of or resulting therefrom.
*

Non-Hospital Nursing Care or Ambulatory Care, rest cures or sanitaria care, treatment arising from any geriatric, psycho-geriatric or psychiatric condition, treatment of alcohol dependence syndrome and drug addiction.
*

Sickness or disease directly or indirectly arising from AIDS or any AIDS-related condition
*

Suicide or attempted suicide, self-inflicted injuries, self-destruction or any attempt thereat while sane or insane.
*

Dental care and related treatment except as necessitated by accidental bodily injury to sound natural teeth.
*

Cosmetic or plastic surgery, circumcision unless medically necessary, eye tests, refractive errors of the eyes, provision of appliances, including spectacles, hearing aids, wheelchairs and prostheses including lenses.
*

Sexually transmitted diseases.
*

Hospitalization primarily for diagnosis, X-ray examinations, general physical or medical check-up.
*

Charges for telephone, television, radio, newspaper, admission kit/pack and other ineligible non-medical items whilst admitted as in-patient.
*

Sickness or injury arising from racing of any kind (except on foot) professional sports, parachuting, skydiving, boxing, wrestling, professional scuba-diving, bungee jumping and violation or any attempt of violation of the law or resistance to lawful arrest.
*

Flying or other aerial activity except as a fare-paying passenger in a fully licensed aircraft operated by a licensed commercial air carrier or recognized charter company.
*

Treatment arising from any consequence, whether direct or indirect, of nuclear or chemical contamination, war, invasion, act of foreign enemy hostilities (whether war be declared or not), civil war, rebellion, revolution, direct participation in riot, strike and civil commotion, insurrection or military or usurped power, or active duty in any of the armed forces.
*

Any person who resides outside Malaysia for more than three (3) months continuously while the Policy is in force.
*

Investigation and treatment of sleep and snoring disorders, treatment for Hepatitis B and Hepatitis C, and hormone replacement therapy for menopausal conditions.
*

Psychotic, mental or nervous disorders, (including any neuroses and their physiological or psychosomatic manifestations).
*

Expenses incurred for sex change.

Underwriting Exclusions

These are illnesses which are excluded from the policy or excluded for a duration specified by the Insurance Company.

Waiting Period
Illness or Hospital Confinement, except for accidental injuries, which commence within the period of thirty (30) days from the date of original inception is excluded from the policy

This post has been edited by Civil: Dec 14 2006, 04:35 PM

Hmm.. After reading so much.. A little bit blur... And i think dreamers should actually migrate to USA.. Since you like there so much... We have to accept the facts that the definition of total and permanent disability between these 2 country are differents... Insurance company do their research before they publish their products.. Of course this products might oni suit MAJORITY of malaysian.. some MINORITY, i suggest they move to USA.. Or if u want malaysia to have such kind of insurance.. Form and insurance company with that kind of benefit... If that is a success then congrat.... Insurance company is also a company making BUSINESS.. and making MONEY.. it is just like any other company out there...

i recall dreamer said the difference is due to the lack of competition. maybe one day our insurance industry also can achieve the same maturity