You are welcome !

For AIA Berhad, all traditional life and endowment plans cover death and serious disability (TPD) due to an accident and a critical illness. TPD benefit is given free to standard life. However, TPD benefit is in force only before we reach 60 years old. In other words, if a person becomes disabled due to an accident or a critical illness when he is 62 years old, for example, he will get nothing at all. So, in your case, you will get another RM 100,000 provided that you are not above 59 years old by the time you become disabled due to the same critical illness (TOUCH WOOD).

Yes, commit suicide is also covered by all AIA traditional life and endowment plans only after one year from the issue date. Let say, person A buys a life plan from AIA with an issue date on April 1, 2009. His family will get full compensation from AIA only if he commit suicides after April 1, 2010. If he commits suicide on March 1, 2010, his family will only get back all the premiums paid by him without interest. I think this principle is also applicable to other insurance companies as well.

I hope you have no intention to commit suicide due to economic downturn. Haha...

This post has been edited by lcl832002: Mar 13 2009, 01:55 PM

interesting .. one final question
my nominee in my insurance policy is my wife and my wife nominee is me, let say if i involve in a car accident which cause the death of myself and my wife where will this money go to?

i bought these policy when i marry my wife

we do not have any children and do not have a will

In your case, from I know, both of your assets including the insurance proceeds will become an estate. Both of your estate will be used to settle both of your debts like goverment tax, if there is any. After all your debts have been settled, your estate will be distributed according to the Distribution (Amendment) Act 1997 in West Malaysia and Sarawak if you are non-Muslims. For details, please read my blog titled Estate Planning and the Distribution (Amendment) Act 1997. You can click here too.

So, it is very important to make nomination when you buy life insurance and other plans. A will doesn't make sure your nominees will receive the insurance proceeds fast if you never make any nomination. So, before it is too late, please do some changes to your insurance plans like adding your parents' names as well. If both of you already have a lot of assets, it is better for you and your wife to write a will.

This post has been edited by lcl832002: Mar 13 2009, 09:55 PM

Is this a traditional plan? I've asked my agent and he said there's only two types of plan in the market:- traditional and ILP. He insisted that no matter what name they give the plan, in the end, it'll be a traditional or ILP plan

Ya, it is a traditional life plan. To be specific, it is called whole life insurance. It is different from endowment plans.

This post has been edited by lcl832002: Mar 14 2009, 12:04 AM

Thanks
May I know till what age that plan cover?
Being a traditional plan, does it mean that it's protected from market changes? I mean, do I get more return/more protected from inflation?

i am confuse,
so my life insurance will go my my estate or my wife estate ?
since i nominated my wife but she also pass away the same time

if it go my estate then is ok but if it go my wife estate then my mother cannot claim on her estate, my parent inlaw will get it rite ?

if i am correct due to i purchase this policy when i marry wife, the policy become a trust, i cannot revoke her without her consent

The plan covers us until 100 years old. That's why it is called as whole life insurance. It depends. For whole life insurance, everything is guaranteed including its surrender value. However, you can't expect to get a lot of return. For endowment plans, if the insurance company earns a lot of profit, then you will get a dividend from 4 % to 7 %. For ILP, part of your premium will be allocated to buy certain funds you want. In this case, its investment value will be heavily influenced by market changes. Can you see the difference?


Estate here means frozen assets. Once our assets are frozen, we can't touch them any more until our debts are settled. Let say, a person's total asset is RM 1000,000 and his total debt is RM 500,000. He has to settle his debts RM 500,000 first. In other words, his family will only get RM 500,000, instead of RM 1000,000. If he dies without a will, the process of transferring his assets to his loved ones will take more than several years and his assets will be distributed according to the Distribution Act. If he dies with a will, then the process will be shorter and his assets will be distributed according his will. In sum, a will only smooths the process of transferring his assets to his loved ones after all his debts are settled.

For insurance proceeds, it can be considered as estate if he doesn't make any nomination. If he does, then the insurance proceeds will be received by his family from the insurance companies in less than one week provided that his family has sent all the required documents like death cert to the insurance company. This is the beauty of life insurance compared to other financial products.

I hope you can understand better now...

This post has been edited by lcl832002: Mar 14 2009, 01:27 PM

The 4th and most IMPORTANT one that people forgot and all insurance agents don't want to talk about is

The RETURN RATE on an education plan MUST BE HIGHER than the education fee increase rate and inflation combine

Thanks again for the info. Yes, I can see some differences thr. For whole life insurance, I suppose hospitalization is not included?
One more thing, what's an endownment plan? What are the cons of an endownment plan?

Hospitalization is covered only if we have medical card, critical illness or personal accident plan, depending on the reason a person is hospitalized. No life insurance will cover our medical bills for sure.

The premium-paying-period for endowment plans is much shorter than whole life insurance. For AIA Berhad, it can be 8, 10, 15, 20 and 55 years.

When the period is shorter, of course, the premium for endowment plans is much higher than whole life insurance even though both plans have the same amount of sum assured.

The sum assured for whole life insurance is fixed unless you add premium. Whereas, the sum assured for endowment plans will increase depending on the performance of AIA Berhad. If AIA Berhad performs very badly, a dividend of 4 % is payable to its policyholders. If AIA Berhad performs very well, a dividend of 7 % is payable to its policyholders. The premium for endowment plans is guaranteed to be fixed.

The return for endowment plans is not guaranteed but it must be at least 4 % for AIA Berhad no matter how bad AIA Berhad performs. For Investment Linked Plans, the return can be zero or negative if the funds you choose perform very badly.

Endowment plans are more for saving for child education and retirement. It still gives protection at the same time but not very high like whole life insurance. So, the return for endowment plans will be higher than whole life insurance. However, the surrender value you get when you surrender your endowment plan is not guaranteed, unlike whole life insurance.

So, I will suggest people to buy whole life insurance first as it gives more protection to them. After that, if they want to save money when they earn higher income in the future, endowment plans can be considered.

I hope it helps...

This post has been edited by lcl832002: Mar 16 2009, 12:24 AM

just wondering how many years you in the insurance industry

my car insurance is up for renewal in April. I'm currently under TOKIO MARINE.

i'm insuring my HONDA CIVIC sum of RM110k

any other insurance got promotion right now?

TQ

I never heard before car insurance got promotion until now. If any please inform and share with us.

Insurance company generally are reluctant to do car insurance due to high claim, still want to give promotion?

Agent sendiri give discount lor. Which is highly discouraged.

I dun noe gt any promotion o nt..
Bt AIG is quite ok..
It comes with free AAM towing service for 1 year..

AIG goin brankrap lo . . . still buying from them?

well just jk k

My car is under Pan Global, they also provide free towing service, not just 1 yr but for as long as you're under their protection. (Sound like mafia).
I've not used their towing service b4, pray hard I won't ever need to use it. But I did use their free on site service when my car batt. went cook coo. The mechanic came after half an hr of wait, jump start my car. Not 1 cent paid to him.

Anyway... not to say that AIG is inferior to Pan Global, but I believe almost all car insurance comes with free towing (within certain limits).

One year and three months. Why do you ask that?


Can you show us the proof that AIG is going to bankrupt???

This post has been edited by lcl832002: Mar 16 2009, 08:48 PM

actually got.. i remember once i bought from MAA online.. they were giving free insurance + umbrella + travel sleeping bag + chance to win GOLD wafer..

that was 2 years ago.. don't know if they still have it now...