You can PMed me too and I will look into it fairly.

Dreamer

Permanent Total Disabilty Benefit - provided that such Permanent Total Disability has continued for a period of 12 consecutive months.

Here's the definition

"Total and Permanent Disability" means <PERMANENT>, <TOTAL> and continous disablement which wholly prevents the insured from <EVER> engaging in any gainful work, occupation or business for which he/she is reasonably qualified or fitted by knowledge, training or experience.

The above is the Malaysia total and permanent disability insurance and definition of disability.

The followings are the USA definition of disability and the USA Long Term Disability insurance

http://www.disabilitybenefits101.org/ca/pr...td/program2.htm

Definition of Disability

LTD providers use two common definitions of "disability":

1. Own Occupation or "Own Occ": to be considered disabled you must be unable to perform your own occupation. Generally, you will get a benefit check for between two and five years.
2. Any Occupation or "Any Occ": to be considered disabled you must be unable to work in any occupation. Generally, you will get a benefit check until you can go back to work or until the policy ends.


Do you noted the difference?? In Malaysia Total and Permanent Disability insurance, you have to be

A) Disabled -> Not being above to work.

Plus your disability must be TOTAL and Permanent. That means you can NEVER work again.

In USA system, as long as you cannot work, you are disabled. Your disability DO NOT have to be total and permanent.

For example, let's say you get sick and you cannot work. But, your sickness may or may not be judged permanent. Hence, you may not be covered under the Total and Permanent Disability insurance.

Dreamer

P.S.: It is up to individual to decide whether this kind of disability insurance is for them or not. But, always read and understand the contract fully.

This post has been edited by dreamer101: Dec 9 2006, 05:30 AM

<< When it comes to buying investment linked insurance, basically you are buying a 2 in 1 product, insurance and unit trust combined. The advantage of such a product is that you get the best of both worlds.

Basically it caters to those whom wants protection as well as an investment component. These are the people that have limited time, knowledge and experience about investing whom wants protection convenience in an all in one package.

And because of that 'convenience' you pay the insurer the cost of insurance (COI) as well as the cost to manage your money, the task of helping you invest in the funds you prefer. As to the breakdown of the costs, it differs slightly from each insurer. >>

Unless you know how to do the calculation and the insurance agent actually breakdown those cost and tell you exactly what is the RETURN, you have NO idea how much you are paying for this convenience and how much is your ACTUAL return.

You need to compare this to buying your own basic life insurance plus UNIT TRUST/FD.

Know what you are buying and how much you are paying for the "convenience".

Dreamer

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

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

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

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

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

Dreamer

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

<< 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

ZiyiIsmyIdol,

You should thank me. I am teaching you more about insurance. USA has a lot more financial consumer protection and education. So, people are MORE well educated. If you can DEAL with me, then, you can sell insurance to people that moved back from oversea.

Actually, I am a very easy customer. I know what I want and how much I want. I can tell you exactly what kind of information that I need and whether you can sell to me or not.

All,

A basic personal financial tenet is a person need to have 3 to 6 months of expenses saved in a bank A/C or FD. This is his/her first level insurance to cover all his/her emergency. Even if a person has insurance, it takes time to claim the insurance.

It is arguable whether a person should buy insurance before or after he/she build this emergency fund or concurrently. But, if a person buy so MUCH insurance that he/she does not has anyway to save for emergency fund, he/she is buying TOO MUCH insurance.

1) Do young graduate with NO dependent and staying with parent should buy life insurance??

My basic rule is if the young graduate is supporting the parent, the answer may be yes. If not, the answer is no. The basic reason is the death of the person does NOT represent any financial loss to the parent.

The person should build a 3 to 6 months emergency fund. Those money can be used to cover many many more emergency than whatever the life insurance cover.

2) Do retiree need life insurance??

It s all depend on whether the person has retirement income that based on whether he/she is alive. If not, there is NO income loss from the death. If a person wants to buy life insurance to cover funeral expense, he/she should buy enough life insurance to cover those expense. That is all. DO NOT BUY TOO MUCH LIFE INSURANCE. A person should buy MORE medical insurance if he/she has money.

Dreamer

This post has been edited by dreamer101: Dec 10 2006, 11:49 PM

<<saving insurance and critical illness insurance sort of...>>

1) Saving insurance??

I think you mean investment linked insurance which is life insurance plus investment option. Insurance is NOT a good primary saving option.

2) Critical illness insurance??

You need some emergency fund to handle normal financial emergency which is very likely to happen.

Insurance is risk management. You plan for risk management based on what is most likely to happen. You CANNOT be insured for everything. It is too expensive. You insure based on the likeliness of occurance and the cost of the occurance.

Dreamer

Zarth,

<< Are you a parent yourself? If no, then I can understand your point of view. But from my experience in dealing with parents, and when I ask them what is thier biggest investment. Guess what is the most often answer given. Yes, its not the 3 storey banglo, its not the merz or bmw. Its simply thier children. Most parents consider thier children thier biggest investment!

Think about the amount of money spent to get them into the best medical school so that one day they could be a doctor and earn thier own living. Yes, they may NOT need you to support them and yes the CAN still survive without your help. But what about the amount of money spent nurturing you since you're a baby to where you are today? All gone in a flash. Do you think that it does NOT represent is any financial lost? future potential income lost? past income lost? Are those considered financial losses? Yes? No? You decide.>>

1) I am a parent. I DO NOT considered my children as financial investment. I plan so that I can survive/retire WITHOUT my children support.

2) I always tell people a very simple fact. If you REALLY REALLY LOVE YOUR PARENT, why don't you give the money to your parent NOW?? Why do you have to buy a life insurance so that YOUR PARENT GET PAID WHEN YOU DIE?? Does it makes any sense??

<< What kind of emergencies does a say a RM150 monthly life insurance which pays out RM100k upon death or tpd with RM10k annual perpetual income for life if disability occurs? >>

3) I am a very precise person. I said life insurance does NOT make sense. But, disability and medical protection may make sense for people in those situations depending on what kind of company coverage that they have. For young people, disability presents a larger financial risk than medical or death.


The situations that we are talking about here and which is VERY COMMON in Malaysia is
1) young people buy TOO MUCH life insurance and they have absolutely NO SAVINGS and EMERGENCY FUND.

2) Young people buy life insurance so that their parent can get something when they die. But, give NOTHING or very little money every month to their parent. Does this make any sense??

Besides stupid customers, lousy insurance agents share some of the blame too. How should a person ONLY buy insurance but NO SAVINGS or EMERGENCY FUND??

Dreamer

P.S.: RM150 per month on insurance may or may not be a lot of money depending on how much money you earn per month. If you only earn 2k per month, that might be TOO MUCH insurance.



This post has been edited by dreamer101: Dec 11 2006, 05:15 AM

1) Agree.

2) In USA, typical advice for young people is disability protection is the highest priority. The reason is
A) Young people less likely to get sick and seriously ill. Medical insurance is less important

B) Young people less likely to die and earn less money. So, need less life insurance.

The worst case financial situation for young people is if they are disabled. And, because they are young, they will need a lot of income/asset to support them if they are disabled.

Since Malaysia has NO disability insurance that cover a person regardless what kind of disability or whether it is PERMANENT and TOTAL, a person probably has to buy something else.

Now, what is the leading cause of disability in Malaysia?? Car accident?? I have NO idea?? Personal accident may be a good idea if accident is the leading cause of disability for young people and the policy cover that.

This is where an insurance agent can provide value and actual service to the customer. Find out the risk profile of the customer and provide coverage for most important and severe risk for each customer.

3) <<3. Yes, children is parent investment and obligation>>

I LOVE my children. That is all. They are NEITHER my investment or obligation. It is LOVE.

Dreamer

1) I do not need any term life insurance at this moment so I did not research this part of equation.

2) Medical insurance and disability insurance in USA costs too much due to high cost of living.

Dreamer

<<i cannot afford to pay my insurance in USD>>

That statement is NOT necessary true. USA term life insurance can be cheaper even after currency conversion. Especially, if you are looking for term life insurance that pays more than RM200K.


It is possible. But, I have not look into it since I have NO Singapore PR.

Dreamer

http://www.budgetlife.com/expertquotes.htm

Check out yourself.

USD $144 per year for USD100K coverage assuming 25 years old and 30 years coverage.

Dreamer