Hi all,

Tis is 1st time i post in this thread and i NEVER read any of the pages/post...

But i got a question about paying insurance....
There's few option to pay rite?
1. monthly payment
2. quartely payment
3. half yearly payment
4. yearly payment

Which option is better? My Prudential agent told me its better to pay more especially yearly option for more benefit, or interest (mine is those invesment type or similar)

Is that true? benefit to the client? or because the insurance agency want to get more capital to play with?

Must be another insurance agent that do not know how to service their customer properly.

Dreamer

for investment linked type of insurance, its always better to pay monthly.
Your agents probably wants you to pay yearly cos he/she can get the commission as a lumpsum for the year...

Why you should pay monthly and not yearly:

1. Dollar Cost Averaging. You will not be having the risk of buying the funds at a high price, and end up not buying the fund when its at a low price. if you truly understand the fundamental of ILPs, you will know why this is important. with DCA, you get to buy more units at lower price, and less unit when prices are higher. overall, you get to maintain a balanced portfolio without making losses.
However, this is for long term investment only.

2. ILP polices have no have no interest chargeable for monthly payment, so might as well take advantage of that.

3. When you pay monthly, you get to know if your agent's still around to service you.

but personally, I feel ILPs to be a very weak product, as its non-guaranteed, and consumers have to accept the financial risks.

I've no idea what u talking about, coz i only know mine is investment link and thats all i know...
I dont know about what higher/lower prices...
I just pay every month (direct debit) and thats all...

Didnt noticed anything about i can play shares?

tq,

pls guide me how to service properly, i can share with you your great ideas
tq

Wacky_angel,

If you have NO idea what you are buying and whether you are getting a better return than FD, you are essentially throwing your money away. So, why should you care whether you throw away your money once a year or 12 times per year?

If you do not take care of your own money, there are plenty of people willing to take it from you.

Read the first 12 pages of this thread. We had long and lively discussion over ILP.

Read the all the posts on this thread. At this moment, you have NO IDEA what you are talking about.

Dreamer

hi friends
i currently holding onli life insurance from great eastern

any others tat need for additional?

wanted yr feedback
thanks

Feralee,

1) Do you know what kind of life insurance that you are having?

2) Do you know how much cash value do you get back in the end of the term?

3) Do you know how much you are paying every month/year?

4) Do you know what is the actual return that you get for the cash value that you get in the end of your term?

5) Do you know if you are buying TOO MUCH life insurance?

6) How do you know if you are buying TOO MUCH life insurance? Hint: if life insurance is your ONLY savings, you are buying TOO MUCH.

7) How old are you?

8) Do you have 3 to 6 months of expenses or income save in a savings A/C or FD?

Dreamer

P.S.: If you have NO ANSWER to questions 1 to 8, why are you buying life insurance?


This post has been edited by dreamer101: Dec 30 2006, 11:12 AM

@ wacky - if you want like saving + secured investment you may wanna try prudential's PruCash Plan lar.. tat one is you put in how much is guaranteed returned lar... quite ok.. unless if you actually want those life insurance, medical card +++ then maybe you'll want to buy the usual investment + insurance type lor.. it's suitable for ppl who don't have a basic insurance and wanna do some investment.. but if your main concern is investment instead of insurance then it's not that suitable lar.. cause return isn't really that much and you'll don't even get anything in the first 8-10 years or so.

@ feralee... first important thing is to see what you have now and what you're looking for. you've got life insurance only now, what about medical card and etc? a lot of major companies already have those.. so you may not need to buy it first lor.. and concentrate on other stuff first. it all falls back to what you aim for and what you need at the end of the day

Dreamer,
Emergency fund = Save & Create
Insurance = Create & Save

What will happen if something goes wrong along the way before he can saves up his/her emergency fund. eg: accident

I would suggest that emergency fund is put aside for other purpose, for example, you mentioned unemployed. He/she can use the emergency fund at that time.

However, for all other possible such as hospitalization,retirement,death etc you can save it in insurance. Let the insurance manage your risk.


I never recall, telling any of the forumers/my client to save money only in insurance. I always advice to diversify your saving.,not putting all in one basket. Insurance is only one part in financial planning !

This post has been edited by Civil: Jan 2 2007, 06:08 PM

Financial planning includes investment, savings, risk management, wealth management and retirement.

Investment: Unit trust, bond, FOREX, share market, etc.
Savings: Normal deposit, FD, emergency fund, etc.
Risk Management: Insurance, etc.
Wealth Management: Property, fixtures, assets, etc.
Retirement: EPF, etc.

This post has been edited by David83: Jan 3 2007, 07:20 PM

sorry, u are wrong. paying annually is better for the client. Logical thinking, if a client were to pay their premium every month, the insurer will have to keep track of the transaction every month, thus causing higher expenses. These expenses will indirectly inccured to the client. Try asking your agent to quote 2 different quotations for u, one paying monthly and one paying annually. In the return section (should be 3rd page of the quotation), u can see the difference clearly. Client did save a little extra for paying annually. Of course, agents will also be benefited.

[quote=dreamer101,Dec 30 2006, 11:11 AM]
Feralee,

1) Do you know what kind of life insurance that you are having?
Life + saving with bouns

2) Do you know how much cash value do you get back in the end of the term?
every year will have 7%- tat wat been told

3) Do you know how much you are paying every month/year?
RM150 per month

4) Do you know what is the actual return that you get for the cash value that you get in the end of your term?
They do send me at statement. Need to calculate

5) Do you know if you are buying TOO MUCH life insurance?
Dont know, only holding 1 from GE

6) How do you know if you are buying TOO MUCH life insurance? Hint: if life insurance is your ONLY savings, you are buying TOO MUCH.


7) How old are you?
now is 25
i bought tat when i was 21

8) Do you have 3 to 6 months of expenses or income save in a savings A/C or FD?
NO

Guys, got something to ask. Sometimes banks call up to offer us nice-sounding PA policies with low premiums, high insured amount, etc. What's the catch? They sound better than the PA I currently buy.

[quote=feralee,Jan 4 2007, 04:37 PM]
[quote=dreamer101,Dec 30 2006, 11:11 AM]
Feralee,

1) Do you know what kind of life insurance that you are having?
Life + saving with bouns

2) Do you know how much cash value do you get back in the end of the term?
every year will have 7%- tat wat been told

3) Do you know how much you are paying every month/year?
RM150 per month

4) Do you know what is the actual return that you get for the cash value that you get in the end of your term?
They do send me at statement. Need to calculate

5) Do you know if you are buying TOO MUCH life insurance?
Dont know, only holding 1 from GE

6) How do you know if you are buying TOO MUCH life insurance? Hint: if life insurance is your ONLY savings, you are buying TOO MUCH.
7) How old are you?
now is 25
i bought tat when i was 21

8) Do you have 3 to 6 months of expenses or income save in a savings A/C or FD?
NO

[/quote]

1) If you ONLY have insurance and NO other savings, you are saving too little money and buying too much insurance.

2) ) Are you living with your parent?

3) Are you paying your parent every month?

4) Do you have any dependent? Aka someone besides yourself that you supported financially?

5) In general, you DO NOT buy life insurance if you have NO dependent

Dreamer

Hey, Astro subcribers also be given 'free' PA insurance coverage until 100k for 6 months from American Home insurance if no mistaken. Don't need to buy also people gave free because it is cheap and after 6 month they will lure you to continue the policy since you think it is 'cheap'.

PA insurance premium is quite cheap only because they cover your 'death' from accident only, nothing else. If you die from illness or other than accident then your dependant won't get a cent from the insurance.

In my opinion. I do not agree with this quote. Lets take an example

Mr.A just started working, with an investment policy lets say, cover whatever needed to be covered by a normal person. One day, he was hospitalized due to some reason, as he just started work, so he do not have any extra saving. And for that hospital fees, he have to pay for lets say RM20k. Things we need to consider is, where will this 20k come from if he didn't buy any insurance, as he do not have enough savings? Of course from the people that love him the most = his parents. RM20k should be OK for average parents. What if the parents is below average? Where will the 20k come from? For this moments of course his parents will do whatever things in order to get the 20k right? Beg, charity or whatever. Do you want your parents to do this kinda things? If they are not desperate, do you think they want to do this kinda things? What is wrong if u set aside only RM150 (From one of our discussion above) everymonth?

Another example, you are an employee of company ABC. Now you are paid RM2000 to work in the company. Knowing that economy crisis strikes, your boss ask you into his room, saying that, we are sorry to notify you that we have to reduce your salary to RM1850 or you will be sacked, will you accept the offer? As now looking for a good job is not easy. I bet you would. With sacrifying RM150, you still get to live right? Better than you lose everything...

Anyway.. Just my 2 cents..

prudential agent?

woh, serious? is it true that PA only cover death from accident only?

<< 5) In general, you DO NOT buy LIFE INSURANCE if you have NO dependent>>

A) If a person is hospitalized but did not die or lose an arm or leg as per your example, the LIFE INSURANCE will not pay anything. If a person want to cover for medical needs, he/she shouid buy medical insurance NOT LIFE insurance.

B) A person should have some savings first before they think about buying insurance.

C) How the hell can a person can just withdraw money from an investment linked policy?? It will come with a huge penalty. It is much better to have some savings first.

So, tell me if a person is hospitalized, how can a person get 20K from a LIFE INSURANCE? Do you know anything about insurance?

Dreamer