The concept of being able to get back your money is just sales talk by agent. Always think of life insurance as an expense, meaning you pay for it for protection. Like your car insurance, the premium needs to be paid for as long as you want to have the cover. If you want to still drive your car after 80 you need to pay the premium, albeit a more expensive premium because the car is now more prone to breakdown. For example if the car is over 10 years you'll need to pay a loading or extra premium, some up to 100%!

The same goes for us. The older we get the more chronic health issues will creep in. Hence we get more riskier from insurance point of view. When we get riskier, so is our insurance charges.

Even though the plan is ILP, it DOES NOT MEAN it is for INVESTMENT! You see insurance charges will go up by age even if your premium does not. Take a look at the page where it shows the insurance charges. Add all the insurance charges together and that is the amount that will be deducted from your cash values when your insurance charges is more than your premium paid.

This means that the cash values accumulated if you withdraw at older age may cause the policy to lapse due to insufficient funds when the insurance charges overtakes your premium. Do note that the cover especially for medical needs to take care of you till you are 70 or 80 or even more. There is also a page that tells you at what age your insurance charges is expected to be more than your premium paid.

I just ran the quote. For RM200 per month

1. Life RM100k or Totally Permanently Disabled (TPD) or Critical Illness (CI) Rm100k (whichever event comes first).
The difference from the original quote is that Crisis Defender does not accelerate the payment for life hence the premium is more expensive. Meaning if CI already claimed out RM100k, and upon death there will be another RM100k for your beneficiary.

2. Accident Rm100k

3. PruFleximed medical card cover up to age 70, NO co insurance as oppose to PRUhealth. Annual limit RM100k, lifetime limit RM2Million.

4. Waiver of premium.

For the new quote only RM100k is payable out on CI. This should suffice until your income becomes more stable and it can be upgraded later. Same goes to medical, where you can gradually increase it along the years.

You may have the budget now for RM310, but considering you are still young you are bound to get more commitment in the near future like getting married, buy house etc... all that costs money and if you were to put too much on insurance, you'll soon feel the burden of paying too much and may even considering surrendering the policy prematurely.

This post has been edited by roystevenung: Feb 15 2013, 11:36 PM

For takaful the highest plan is the Rm400 room and you can attach with the annual limit waiver rider to have a lifetime limit of rm1.5m subject to 10% co takaful, min rm300 max rm1k for inpatient. For outpatient 10%, max Rm2k co takaful.

Taiko, Prudential have lifetime limit of RM 4M - cancer & kidney as charge, deductible RM300 or zero deductible.

I got a client from US residing here, when I told him Rm 4M lifetime cover he say RM 4M only?

The annual limit is RM200K/RM4m lifetime

Which is what I had said, with a twist of lemon.

However, for traditional policies one is subject to the risk of medical inflation and is not able to upgrade in later years, not as flexible as the ILP.

This is also the reason why for someone age 45 and above, it is more advisable to have a traditional plan that there is a no lapse guarantee so long the premium is paid as oppose to the ILP which is subjected to fund performance.

In short, plans will be plans. There is no perfect plans but as an agent it pays to let the client to be to know what is insurance, no matter whether it is ILP, traditional or term.

This post has been edited by roystevenung: Feb 26 2013, 05:27 PM

Best to also include the benefits of the cover. After all RM1.2k p.a premium could also mean no medical card but to buy high life and CI cover.

Nope. No sales you are out, sorry. But welcome to Prudential

Every year you need to maintain a minimum of Rm20k API. Example if client is paying RM200 per month and it is fully for medical/cover, that is RM2400 Annualised Premium.

Secondly, persistency must be more than 85% or kena love letter.

Thirdly must attend at least 30 hours of training per year.

Yup but with rm20k api only, if want to belanja people minum kopi pun kena minta wang from mummy...

If you are not ready to commit yourself in doing it my advise is don't. Being in this line is not about driving expensive cars or being able to buy big houses.

Reality check: with rm20k api, your pay is less than Rm300 a month, which is worse than a minimum wage factory operator.

In addition, those clients that you have sold to is probably close friends and relative. You are going to have relatives nagging you every CNY.

Take your time and do wise judgement, it is a life long commitment, a service industry. While people are on CNY holiday, do expect calls from your client should emergency occur.

You got PM.

I just came back today from KL servicing clients there. Currently at Loh Guan Lye. Let me know how I may assist you. Thanks

You got PM.

Yup, there is a 15 days cooling off period after he deliver the policy and you'll get back the premium. Eg. If you paid RM 100 for the policy and exercise the cooling off period, you'll get back RM100 by returning the policy document to the insurance company.

If it was after 15 days, the valuation has started and essentially if you cancel the policy you will only get the cash values, minus the insurance charges. Meaning, if you pay RM 100, you might get back only RM 30...

If dont have the medical card yet, then no. If already have the medical card that is able to cover till age 80 oe 90, then yes.

But do note that at 60 the premium is Rm 160, but 5 later the premium may need to pay more.

If your budget does not allow you to get a medical plan at the moment, it does not mean you should get CI/TPD cover just for the sake of getting an insurance plan. CI & TPD is not the same as medical plans. Both are insurance but both serves different purposes.

In the event of a CI like cancer or stroke, the first immediate thing that you'd expect do to is NOT HOW MUCH CAN I CLAIM FROM THE CI/TPD! But instead, CAN I SAVE MY MUM'S LIFE! That is where the medical card comes in.

Now here is the biggest irony, if you only have the CI/TPD plan and not the much needed medical plan:-

In order to claim from the CI/TPD, you will need to furnish the insurance company the medical report. For severe stroke that requires ICU (which could be up to a month or so), is ranging from RM 80K to RM 100K. Without paying the hospital this bill, the much needed medical report will not be issued.

Without the medical report the CI & TPD will not be paid out. Cases like stroke / paralysis requires to be having stroke for AT LEAST 6 MONTHS before the CI claim can be issued.

Most of the agents here had advice you to get medical plans instead of the CI/TPD. In my humble opinion, getting CI/TPD at age 60 is completely and utterly useless (no offense intended) as the insurance charges are high that its best to spend your money to the medical.

By the way, is the agent hot?

This post has been edited by roystevenung: Mar 9 2013, 08:10 PM

Touch wood, if anything happens to you, I'm sure you do not want to have to use the Life/CI/TPD money to pay for the hospital bill, no? If there was a severe accident that needs to be hospitalized, surely you'll need the money and of course the first thing is to save life.

Secondly, what was your purpose of getting an endowment plan of CI for RM 60K? I hope that the endowment plan is not for savings as having a RM 60K CI cover eats up on the cash value as most of it would be used to pay the insurance charges. Do yourself a favor, calculate the endowment returns yourself. I'm sure you'd agree that it is more for protection.

Definitely a medical plan is needed. Your car is compulsory to have a 'medical card' as it is protected againsts financial losses should we are involved in accidents. Get my drift?

It depends on what plan that you had bought. If ILP, then yes, just sign. You need to ask agent or walk to the counter to enquire how much the premium would be reduced to.

Also, before you cancel any benefits do know what you are cancelling.

Whether the cash values will be able to cover for the insurance charges, no one can tell as there are simply too many uncertainties. Who knows what will happen to Malaysian economy 20 years down the road. For example Lahat Datu case.

But one thing is for certain, irrespective of whether the insurance charges goes up or not, you buy insurance for its coverage/protection, never to expect to get back anything.

For medical if you were to cancel your plan at age 50, just promise that you wont get sick till 80. Otherwise, the investments that had been generated over the years may have to be liquidated.

Yup, which is why I advise earlier against buying Life/CI/TPD for people age 60. Thats where you need to focus the medical so that you do not need to liquidate whatever that had been saved/invested for your retirement.

Makes sense?

What happen to your GE agent? If you are from Penang and lost your agent, I can refer you to my brother in GE.

1. Definitely it will result in reduction of premium. However if your policy is less than 3 years, your agent will not be happy

2. Minta penjelasan from the GE agents here. If you need a quote from Prudential, for comparison, give me a PM

ILP or any plans with attach medical rider may appears to be expensive because it is the cost of insurance 30-40 years later. People used to say landed property in Penang 30 years ago costing RM200k is expensive but now dirt cheap. See where I am getting to?

As for the pre-existing, if you have a clean medical card without any exclusions, but has developed a medical conditions that warrants exclusion, of course the insurer would be more than happy to reduce the benefit for you as their risk will be drastically reduced.

Generally most people will not reduce the cover once they developed a medical condition. More likely they will try to increase

For upgrading, if your old medical card is without the medical condition, but you are worried that it is not enough and would like to upgrade, it would be best to add on another medical card.

Reason being that if you upgrade it on the existing medical plan, the exclusion may be added.

Hence get a new card with the exclusion and if there is claims related to the exclusion, claim from the old card and vice versa.

Instead of hoping to get surrender value, just treat it like an expense. Otherwise you may be in for a disappointment. After 60 means no more company cover, hence everything have to rely on your personal plan.

Advise is to have the medical to be until age 80.