Alright, another thing for this Life insurance, what am I suppose to look at? What's the main purpose of life insurance and what is the expected premium like?

From what I'm thinking, is there any policy that can do the following:-
1. If I die, a natural death / accidental / CL / went missing (probably die from earth quake, can't recover body), this policy would be pay x amount of money to my nominee? (Let's say pay to my wife or dad)

2. If the above happened, the policy would able to cover my outstanding loans and debts, don't have credit card debts though, but house loans most likely

Would a typical life policy able to do this?

All comments are much appreciated!

-- Z Yuan

Simonhtz,

The perception of life insurance differs from how one defines it individually. However the fact remains that it's the best available vehicle to be used to protect income, life style and even take care of liabilities arising from disability, death or critical illness.

A1. Yes the policy would pay out the Basic Sum assured to your nominees provided they're able to provide proof that your dead. The legal document for this must be present for the claim to go through.

A2. This depends if your policy has sufficient coverage to be used to settle off your liabilities. For an example, if you have a home loan with outstanding amount of RM 200K then a policy of that quantum is good to be used to settle it.

You can assign the policy to the bank but I would recommend you to put in writing in your will together with your other estates specifying the purpose.

Cheers,

HH

I asked a financial planner to draw up a comprehensive, yet value for money, insurance plan that will last me 30 years.

She recommended I take a combination of 4 plans - 2 deductible medical/healthcare plans ( a total of RM250k annual limit, RM1.15 million lifetime coverage ) and 2 critical illnesses plans (a total of RM250k coverage).

The total premiums? Less than RM120 per month.

What do u guys think, with regards to the premium (is it too high?) and coverage (is it too much or too little?).

Why do you need 2 critical illness plans and 2 medical plan in the first place?
All are emphasis on your own only. It doesn't provide protection to your dependant (I don't know what is your situation, may be you don't have dependants currently)

2400 pa commitment, you need to see your annual income level to justify as well.

Insurance sometimes it is not about value of money (whether the insurance is cheap or high coverage or not), the main criteria to look at is, do you actually need it, and priority need to be taken care of.

Allianz power link vs pruBSN
which better?

There is no such the best insurance/takaful in the market. You need to ask yourself, what kind of protection that you need.

Both product is investment-link plan. PruBSN is a takaful product while PowerLink is a conventional insurance but both product work the same way - unit deducting rider. The allocation premium is used to buy unit and then will be cancelled to pay for insurance/wakalah charges

What I can see the major difference are between its allocation premium rate and also the medical card rider attach to it.

Allianze no medical card?

They have medical card also. I think the difference between both card are at co-takaful/co-payment and also no claim bonus.

PruBSN Takaful Health medical card always charge 10% co-takaful from your hospital bill (subject to minimum RM300 and maximum RM1000). And if there is no claim has been made, you are entitle for No Claim Bonus between RM100-500.
Allianz will charge co-payment 20% (subject to a maximum of RM1000) from hospital bill if you are staying in a room higher than your entitlement.

Premium Allocation
PruBSN:
Year 1: 40%
Year 2: 50%
Year 3: 65%
Year 4: 70%
Year 5 & 6: 90%
Year 7 & above: 100%

Allianz:
Year 1 & 2: 42.75%
Year 3 & 4: 76%
Year 5 & 6: 80.75%
Year 7 & above: 95%

Maybe allianz agent can verify this?

What mean by Premium Allocation?

The premium you paid is subject to premium allocation which will be used to buy unit in chosen fund. From these units, some will then be cancelled out to pay for insurance charges.

As example for PruBSN, let's say your monthly contribution is RM200. For Year 1, only RM80 will be used to buy units. From these units, some of it will be cancelled out to contribute to tabaru' fund (equivalent to insurance charges in conventional insurance). The remaining unit after deducting to tabaru' fund (insurance charges) and other charges, will become your cash value. This cash value can be withdrawn (subject to term & condition).

PruBSN Takaful Health medical card holder need pay more if are staying in a room higher than the entitlement?

Is it ok to buy insurance from agent which you dont know?

yes provided he is experience.

if no experience then when reach claim time it will be difficult.

if buy from stranger, will I face problem like hard to contact the agent as she/he might not remember who am i especially 6 years later when he/she no longer able to have commission from my policy.

Since is stranger, sometime we also not sure whether the agent is responsible person or not, normally how to tackle this kind of issue?

You just need to pay for the room differences.
The ko-takaful remains the same regardless you are staying higher or lower room entitlement. That is 10% (min RM300 max RM1000)

Can you give me example?

I'm noob searching for insurance now.

Let's say you got TH200, entitle you for Room & Board (R&B) up to RM200 per day.

Example: Your total eligible bill for claim is RM 5000 (A) and you are staying in a room cost RM230 per day and stay for 5 days.

Cost of the actual R&B = RM230 X 5 = RM1150 (B)
Cost of the entitle R&B = RM200 X 5 = RM1000 © - is paid by PruBSN
So you need to pay the different of room = (B) - © = RM150 (D)

The remaining bill = (A) - (B) = RM3850 (E) is subject to cost-sharing agreement between PruBSN and certificate holder. 90% is paid by PruBSN. 10% is paid by certificate holder.

90% x (E) = RM 3465 (F)
10% x (E) = RM 385 (G)

This is what you need to pay upon discharged: (D) + (G) = RM 150 + RM 385 = RM535
This is what PruBSN will pay: © + (F) = RM 4465

Usually PruBSN/Prudential agent will advice the client to take Hospital Allowance (between RM 50 - RM400 per day), so that it can cover the cost of ko-takaful/co-insurance.

In Allianz, if the above scenario happens which is staying in a room more than entitled, the cost shall be:

Cost of the actual R&B = RM230 X 5 = RM1150 (B)
Cost of the entitle R&B = RM200 X 5 = RM1000 © - is paid by Allianz
So you need to pay the different of room = (B) - © = RM150 (D)

Then ADD 20% up to max RM1k on the remaining (A) - (B) = RM3850 = RM770 (E)
So upon discharged, the required amount to pay is (D) + (E) RM150 + RM770 = RM920.

So my advice is in Allianz, do not stay in a room more than eligible. Example:
Your total eligible bill for claim is RM 5000 (A) and you are staying in a room cost RM200 per day and stay for 5 days.
Basically, Allianz will cover all the above expenses without u paying 10% co-insurance.

This is the mahor difference in these 2 cards. THanks

One thing you need to check when you are looking for a medical card, it should be guaranteed renewable. If not, you may have trouble when the card is due to renew, either you can't renew, you can renew with loading, etc

PruBSN Takaful Heatlh is guaranteed renewable.

I saw the news say that there new plan come out for pruBSN.

is it better than current plan?