I'm looking for an Insurans package that suit me, anyone can recommend me since I jz starting work & a fresh grad. Do pm me for more detail thx!

hi solarwing,

rather than just look for an insurance package, have you thought about how much coverage you need? questions that you might want to ask yourself:

1. do you have any dependents? parents who are not working? married with kids? any homeloan? if you have homeloan, does it include MRTA?
2. does your company provide insurance coverage? and medical coverage? some companies provide adequate life+accident coverage so you may not even need one. if medical is covered as well, then there isn't much point to get any extra, unless you are looking for one of those ILP programs.
3. since you have just started working, i assume that you don't have much financial commitments? if so, what do you intend to protect by getting insurance?

most large companies provide term life and personal accident cover, and also medical. so check out details of your company package then decide whether you need additional insurance.

i'm not an insurance agent, just very interested in personal finance matters. you are still young, so look at overall picture including the option of investing now for future returns (shares, unit trusts, properties, there are a lot of investment vehicle out there).

hope this helps.

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Added on December 25, 2009, 9:26 ami guess ask:

1. where is it documented the amount put into funds? if it's ILP by name, but yet so little put into funds - what is the use? isn't it possible to go for non-ILP then or ILP with greater contribution?
2. do you need 3D + PA + income replacement?
3. not familiar with medical card, so can't comment here
4. what's the difference between this and the traditional plans? what does the traditional plan offer that this doesn't and vice versa?
5. if you need (need, not want...) the income replacement/surgical/outpatient, then it does sound good
6. the 10% put into funds (i guess unit trust) is not guaranteed. unit trust can go down and up. if it goes down, will it still cover the premiums?

note: i'm not an insurance agent, so the reasoning/advise above may not be the best.

with insurance, hindsight is always 20/20. if something happens, one would look back and say "i should have gotten that policy......" so think carefully what need then go get it. but if you have evaluated and decided not to get it, don't go thinking "i should have gotten that policy.....".

insurance is about protecting current wealth and if you have dependents, their livelihood in the future in case you are not around anymore. i personally DO NOT believe in any returns from insurance. i think if one reads up more about investing, one can easily get similar or even more returns without needing to be locked down with a certain policy. personally for me, insurance should be 100% protection only, and make sure it's something you NEED and not WANT. it's very tempting to make a coverage of RM2million for example, but evaluate how much you need. i've read that coverage of your next 10 years annual salary is a good start, but again, i'm not an expert in these matters.

just something to bring out to discuss.

Merry Christmas and Happy New Year!


This post has been edited by poolcarpet: Dec 25 2009, 09:26 AM

1. well, basically i wanted only traditional 3D term insurance with medic card and PA; but the agent went ahead and recommend me a "better" plan. (ILP that does not have much I) maybe this is due to ILP giving more commision, or she's better trained in ILP products, or ILP really is better than a mix of trad + medic, i have no idea.
2. i wanted 3D + PA + medic. income replacement, not really, but since it comes with the package...
4. basically according to the agent, this ILP has everything traditional insurance have. in addition to no-increase guarantee renew medic, some I, and income replacement for around ~rm20 extra/month.
4a. lets be honest here, i wont even notice that rm20 in my monthly expense so the difference is negligible.
5. i dont need those, but since it comes together...
6. not looking for returns also. but the possibility that is may safeguard my insurance premium in the future is worth looking at.

1. When it is an ILP, you have options to set a certain amount just for investment, eg Total Payment = Premium + Fund Investment. Some of the premium will go to investment, percentage depends on the cover and attached riders. Fund Investment 100% goes to investment. It depends on the company also.

2. Convenient yes, only pay one policy at one time to one company, instead of tracking 3 policy covering three different things from three different company with three different rules. Honestly, do you have the time? Bayar bil api/air pun sometimes you forget.

3. Yes. Normally. This is a feature you only get from medical riders attached to an ILP or Term, again from certain companies only, whereas standalone premiums will increase when you have to renew every year.

4. Yes. And insurers love ILP because they also make money from investing your money.

5. Again, yes. Read the fine print of most standalones, where they reserve the right to change the premium. They like jargons here, so they don't say that you pay more when you are sick, they say you pay more if you have a non-standard life.

6. Yes. They send you the investment report every year, so please read it.

well lin00b, basically agents earn more on traditional products than ILP

The rule of thumb is always 10% of your salary should go to getting some form of insurance protection. Get the most cover you can with that 10% first. Here, the most important cover should be death, disability and critical illness. 10 years annual salary is a good start, however premium for that much cover is likely going to be quite high for most middle income salary worker. Sometimes after looking at prospect financials, the best we could offer is enough cover so your dependants can have time to adjust not having you around.

After you got cover for that, now time for yourself. You don't want to be a burden to your family should you need medical help, or you need long term treatment, so try and get medical cover.

Then you think about returns. Most people may say that insurance should not talk about getting returns, but we have to delve into the psyche of the society to see how they think. Reason why so many in Malaysia do not have insurance cover is because they see it as MONEY BURN only. ILP comes in and say, no, now you have investment and there will be money coming your way when policy matures. Which is why it is quite popular.

Lastly, for the masses out there that could only spend RM150 a month for insurance/savings/rainy day fund/ASB/ASM/Unit trust? I am not talking about majority of us here who could afford, and have the time to track 3 different unit trust investment, playing the stock market and feel only a tinge of regret if u lose 1k playing forex, I am talking about those people making RM1500 a month on salary that could only spare RM150 for their financial security? Tell them to get standalone medical cards with premiums increasing every year, in a disporportunate amount to your salary increase, (Level 17 govt staff btw, only have less than Rm50 increase every year)? Tell them to invest in ASB (And drawing it all out when paying hospital bills, leaving him without any savings? Or even worse, sipping into EPF to again pay the bills. That assumes he or she has the fortitude to keep it there in the first place) Tell them to invest it all in unit trust? This is what we are seeing on the ground today, people living paycheck to paycheck. One knock somewhere, and their lives are ruined!

So when you shop for insurance, don't be penny wise, and pound foolish. Don't save without cover, otherwise your savings will have to cover.

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Added on December 27, 2009, 4:09 pmI don't think so.... Unless the industry changed and they forgot to tell us about it.



This post has been edited by mfitri77: Dec 27 2009, 04:09 PM

maybe different companies have different commission scheme. As i know traditional products like Critical Illness and whole life products yield more commission. But anyway, starting from next year every insurance company will have to disclose agents commission in ILP products. Better for the customer!

sry..wanna ask question here.

what does co insurance means?

Thx for yr answer

Co-insurance means you are to share a portion of expense incurred. This is usually to curb claim abuses and to instill a sense of responsibility to the public.

To illustrate, say your medical bills comes to RM 4000.00 and the co-insurance is 10%. That means you'll have to fork out RM400.00 and the insurance company would absorb RM3600.00.

However, do note most insurance companies have other conditions attached hence it's best to check on your policy or agent.

Cheers,

HH

oic...so co-insurance is still consider as saving plan?

emm co-insurance actually not a plan. its just part of the expense that you will need to pay urself during claims. For example: medical cards they have 10% co-insurance and some companies have max cap like RM 500. As HHalphaomega said its all depends on companies.

Hi Babychai,

I wouldn't say so unless you're considering that 90% cost saved as a form of savings.

Co-insurance usually relates to medical insurance products such as medical card etc.

When you say savings, it usually would mean amount saved using other insurance products such as term life, whole life plan, endowment plan, investment linked plan etc.

Cheers,

HH

I had been invite to join pruxxntixl bxn txkxful, any advice & opinion on this?

you mean join them as agent or buy insurance from them? why the Xs ? is the full word censored here? sorry, just wondering

Ever wonder why you have to pay filing fees when you want to sue someone in court? Well, that's because we don't want people filing defamation suits just because you traded insults with your neighbour.

Same with co-insurance. The reason insurers make you pay the 10% (other than BNM rules) is because we want you to be warded beacuse you are really sick, and not because you want leave, watch world cup (legendary story this one) etc etc.

When you have to pay, takut skit wo..

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Added on December 28, 2009, 10:28 amIf join as agent, good.

If get a policy, also good.

If joining as agent, PM me, we talk-talk, keh...

This post has been edited by mfitri77: Dec 28 2009, 10:28 AM

buy from them. they quote me a package RM 140 per month..any advice?

Takaful plan? or Investment link?

Is anyone familiar with TuneMoney's Takaful PA? It's underwritten by CIMB Aviva, and coverage for Class 1 occupations for RM1m + some medical expenses (RM10k, plus some other accident related claims) is only RM494.40

Is this the cheapest PA out there? What's the catch??

140per month?is tat saving plan o else?

Hi Poolcarpet,

I doubt there's any special catches to this plan as this plan only covers should anything happens to you due to accident.

A typical PA takaful is an annual plan that provides compensation in the event of death, disablement or injuries arising from an ACCIDENT. PA takaful is also available for short durations to cover you should any accident occur during your travel period. Cover for PA takaful is provided in respect of accidents occurring, subject to the terms and conditions mentioned in the certificate.

Have a good read of the terms and conditions before you part away with your money.

Cheers,

HH