anyone getting insurance here?
is it right time to get now?
ur company does insured u
is that nessesary to start early?
as they say early u need pay cheaper

yes..when u get ur insurance at a young age, the rates are different to those of the working age..

altho ur company does insure u, probably it doesnt cover some areas in ur life like lady issues as such

yea, if u get at young age, it is better since u wont have so much disease oso. If u take later, they wont cover insuranse for ur current disease. That make quite pointless to buy insurance that time. Btw, a lot type of insurans too....mayb we shud be spesific then....

yeah..specific..thats the word..u need to know what coverages that u need in ur daily life(work, lifestyle)..

an instance, for scuba divers, there's a non profit organisation, DAN(Divers Alert Network) providing insurance coverage for diving related illness, diving trips and medical care..

There are education insurance, investment insurans, lefe insurans, health insurans and more....mayb u can ask around to find out which suit u the most.

yeah,... i got mine from HLA.

I always asking people to buy insurance in any case. As i think everyone must have at least one. The drawback is,... everyone only could have one to claim too. As when any "touch wood" thingy happens, the insurance company only accept the original hospital document. That means, there is no use if you apply 2 life insurance, while you only can claim one from them. Just pick the better one(to your opinion) would do.

For case of if a person got 2 insurance signed. "touch wood" thingy happens, while the person still alive. The amount insured from one insurance company is not enough to cover the amount cost(due to hospitalization, operation etc). We still can ask the first insurance company to help us to claim from the second insurance company(only if this case happens). This just for information...

This post has been edited by edifgrto: Dec 2 2006, 10:20 AM

You can claim only from one company at a time, that if you have more than one medical insurance from different company. Its not advisable.

Anyway, for life policy. u can have more than one, and the insurance company will pay if let say you're not breathing anymore..

For medical insurance, its better to take from a company which gives you "Guaranteed Renewal" policy. Not lots of company doing this. One of company that have this kind of policy is MAA Bhd

hmm mm, oh like that? Thank for your guide here. I thought life policy need 1 only.

bro, what is that "Guaranteed Renewal" policy all about?

How much insurance policy to buy? Anyway to calculate?

Example :

Person A bought a medical policy with Company B coverage of RM50K
He has been paying his policy for 4 years now.
On his 4th year he claimed for his medical for 25K.

On 5th year, he wanted to renew his policy, but the company rejected because of his health etc. Company has right to reject because normally medical insurance are based on 1 year contract basis. Thats mean after a year, you have to renew it. Its up to company to accept your renewal or not.

If the policy stated its a guaranteed renewal policy, then u dont have to worries. U claimed so many times also the insurance company MUST renew your policy no matter what.




Normally, financial consultant would advise you to save 5-10% from your income on insurance and investment.

This post has been edited by Civil: Dec 2 2006, 12:13 PM

Oo...so no worry even u suffered from a lot disease?
Btw, there is another type insurance investment. so i juz wonder how is the dividen? more than normal investment + waranty on health?

Yupp, dont worry. Unless its stated on the policy.

I assumed you're talking about investment link product. Its an Insurance + Investment. The dividend is depends on fund that you choose at the time u sign up. Normally, consultant will suggest customer to invest in low risk fund that normally would give you around 3-6% returns,

Based from my experience, insurance is good but make sure you have extra cash on hand in case of any emergency. For eg... someone passed away. For the chinese, of course a funeral would cost thousands of ringgit. The lowest also is around rm10K. If you are expecting insurance money to cover, you'd better not hope so far as the process is kind of slow to have the money drawdown to you. (you can expect to have a funeral with a decomposed body don't cha?)

Some products gives you advance money to cover the funeral cost.
Normally, the company will issue you a cheque after you submit them the relevant docs such a death certificate, police reports etc. Normally timeframe are 24hours.

Also, most of investment links type of insurance allows you to withdraw amount of money from your investment account, but there's still a minimum amount must be kept,usually its around 2k.

I recently bought an investment-linked life insurance policy from Great Eastern Life.

If you could start early, it'll be better as the amount of money you'll be getting is higher for some low premium.

This post has been edited by David83: Dec 3 2006, 01:48 AM

Shouldn't buy investment-linked life insurance, it is more high risk.

At the end of the policy, your invetsment might be null :lol

Really? But people are keep on promoting it?

mind to elaborate more? would like to know the reasons behind.

I also want to know why ...

Investmest link product is not a high risk policy.

People need it because they need protection and at the same time they want some of their money to be invest with not much hassle.

Hence the customer got 2 in 1 products. I will brief more on investment.
When cust buy an investment link product, your consultant would normally asked you and suggest you which fund that you preffered. Issit a high risk investment with high returns or low risk investment with average returns.

An Aggressive Diversified fund like Growth Fund put their strategic assets allocation mostly 70%-80% in equities, fixed income securities & liquid assets-25% and other assets - 5%. The majority of the total return is likely to be in the form of capital gain by way of increases of unit price or by creation of additional units (bonuses) after the end of each distribution period. If you fancy a high returns figure and dont mind the risk this is a fund that surely suitable for you.

If not, better stick to a balance diversied fund or Conservative Diversified fund which gives you average returns . Also the risk is between low to average.

This post has been edited by Civil: Dec 4 2006, 12:48 PM

Insurance is essential for everyone cause medical fees is very expensive nowadays. There are 2 insurance that everyone must have.
1) Medical Card
2) Critical Illness coverage.

BTW, you can only buy it when you are healthy. So it is advisable not to delay if you can afford it cause we do not know what will happen tomorrow.

can start off with minimum for medical card, once you are in, you can upgrade it as you grow older as long as you are healthy.

Buying a policy its best to have the Critical Illness and Permanent Disability rider attached. If you cant afford at least get a PA. With increase in population and cases of accidents, it is handy to have one.

Oops.. sorry cuebiz had it covered earlier. But most importantly get a policy from one agent that is serious in the business. Sometimes it is nice to help out a friend but if he is not going to be long in the industry its best to get it from someone who has some track record in it as it will be easier for him/her to help arrange for the claims when the need arises.

This post has been edited by Grengo01: Dec 4 2006, 05:06 PM

Civil has explained it.

In fact, the 2-in-1 insurance is that they apportion part of your premium paid to insurance and to those linked investment (unit trust)

For example, your premium a year is RM2000 and may be RM500 is linked apportioned to unit trust.

RM500 is divided according to that market price at that time and see how many units you can buy. The balance of RM1500 is allocated to normal insurance protection.

Correct me I was wrong.

Always buy investment-linked insurance product for its PROTECTION, not return as it will be low bcos of insurance fees included. Normally the return would be what-u-put-in-is-what-u-get-back. Its good in terms of protection since they give u medical n life coverage.

But if u wan a return almost same of FD account in bank + insurance coverage, go for life products. There is no cheap or expensive product. Just remember what u pay is what u get.

From my experiences, the invesment will only break even after 6 years and after that you'll should be gaining something from it.

FYI,

company does buy group policy for you, bear in mind, that is somewhat a key person insurance, something similar. Well, some even come with medical card.

However, if you pass away, your company might receive 1 million, and they have no obligation to pay your family that amount, because the main purpose the company buy this insurance is to protect themselves more than you. You can check this terms at your letter of offer.

Some company will state that, if anything happened, you will be paid, say 24 months of your salary, things like that. A lot of small companies, most of the time, take advantage on it.

The best way, is to buy yourself a policy.

Of course, the earlier you get one, the cheaper is it compare with later age. When we get older, we might get disease we dont know. So try to avoid it.

Buying insurance is meant for protection, not for investment.

Well, the investment, if gain in large sum, might able to cover your premium in later age, so that you dont hafta worry about it.

Ya, if you wanna go for the cheapest way,

get a term insurance, with medical card.

Actually this might be the best ( In US, theer are ppl saying that, all we need is term insurance + medical card ) The rest we hardly use it

Make sure you pay your premium monthly, not half a year or pay full for a year.

So that your unit trust can go on cost averaging down.

FYI, last year a lot allianz investment link lapse, because their fund was not performing ( -40% ), and most of the policy pay one shot for a year.

Well, that is of the purpose of investment-linked. You can use the earned money value to cover your premium in later ages; 10 or 15 years later.

What do you meant? Their investment link lost in profit? How they dealt with it?

Normally people who have started working with not much cash to spare will buy investment link policies coz we have some protection and at the same time, we are saving money. Just take the investment link as a saving program, though we need >6 years usually to see break even and later earn profits. This is becasue during the first feew years, part of our premiums paid went to the charges and commission. But after some years later, the insurer will invest 100% of your premium into investment, plus another 10% bonus from them.

Why the hell you want to pay ADDITIONAL insurance agent commission to buy unit trust when you can do it yourself? That is essentially what you are doing when you buy investment linked insurance.

Dreamer

This post has been edited by dreamer101: Dec 6 2006, 11:50 AM

But they are acting as your fund manager, a little reward for them could bode well in the long run.

B.S.

You could hire the SAME fund manager and buy the SAME unit trust without paying ADDITIONAL commission to the insurance agent.

<<A little reward??>>

LOL. Do you have any idea how much commission you are paying for this? As I have always tell people, if you are good in selling, you should sell INSURANCE. You could get RICH from insurance commission.

Dreamer

Oh no, go easy on me, i am still in the learning phase, I am aware that some insurance agents gets wealthy just by commissions alone. Recently Thestar also featured an article on two ladies being millionaires by selling insurance.

I tought i read that article in TheStar.. they were actually selling unit trust..not insurance

BTW FYI, i hav a fren who bought investment-link a good 10 years ago. He hav put in total 18k. When he check how much his return, its only around 6k. So it suk.
Go for traditional product. Go go go!

I have no idea what article you are talking about. But, there are MORE people getting rich selling life insurance than unit trust. For investment linked insurance, you have NO idea how much of your premium is going towards investment versus insurance and how much is your actual return. It is easier to collect HUGE commission and people are HAPPY to pay it since they have NO IDEA how much they are paying.

Dreamer

As i mentioned before, term insurance with medical card might be the best choice. The only issue you need to deal with, is the medical card.

Traditional products, especial those so called policy that only need to pay for 10 yrs or 20 yrs; or cover 3 generation, please do not buy.

Consider term insurance if you are on tight budget. It is cheaper but one thing about it is that you will need to pay the premium until you either surrender it or dead.
Those life insurance have dividend being paid and traditionally, you can stop paying the premium after 16 years as the dividend earn could cover the premium.

i've paid for 1 term insurance for 4 months. if i decided to stop now. i losss all 4 months premium right? is there any other problem i'll face?

You have ask your agents to calculate what's the surrender value that you would get back.

I'm an agent n u say i dunno?
But still this is high trust selling and we need to be honest with clients and prospects. Its a long term business.. not short term. Tak kan i wan many ppl to chase after me 20 years later saying they lost lots of money? U say our commision is HUGE u come and do lah.

comission 25%

traditional product 30 - 35%

MRTA 10%

Ethical agent should ask ppl pay their premium monthly, not yearly

bro,

different people got diff needs.

Unit trust are meant for ppl who dont have the time / dont know what the market is, that is why they pay hefty front end load for the fund manager's expertise. foreigner a lot buying unit trust because the charges are cheaper. Malaysia will revamp their structure soon.
there are even fund of funds, where fund manager use the fund to buy another fund, just to get wider exposure and diversification.

pjstreet@com, insurance is only for protection, not for whatever bonus. Having such concept in your mind is easily to get trapped

You have a choice, whether to reinstate your policy or re-date your policy.

Reinstate means that you pay the outstanding balance of your premium and the policy as good as new. This can be done few times.

Re-date means the policy will change it's policy starting date. I think most of insurance company allows you to do it only once.

I observe that many of you concern about the R.O.I putting in investment. If you are looking for a return while you are still young and alive, find an investment product. The fundamental of insurance is to prepare for your love one if anything happened to you. But most insurance product especially Whole life policy, the break even point is at 13 to 14 years and after that you will get more from what you pay.

We are lucky because currently most insurance product come with investment-link. This is good for a long-term financial security.

Investment-linked products meant for protection purpose as like traditional products. Not for 'investment' . There are many other better investment products.

Do u know there are more insurance charges for monthly premium payment? U wouldn't b able to see it bcos u tought u r paying same premium e.g. 1 year pay rm1200, one month pay RM100.

However, ur monthly premium absorb more charges, hence at the end of the day, you lose.

Personally i don't like unit trust as the income u get is taxable

Hi,

Do you realize that you have contradicted yourself??

<< Investment-linked products meant for protection purpose >>
<< There are many other better investment products.>>

1) You buy insurance for protection.

2) There are OTHER better investment product than insurance.

So, why am I buying an investment linked insurance that has a lousy investment component in it?? The answer should be you should buy a PURE insurance with NO investment.

But, the problem in Malaysia is that you cannot get PURE term life insurance or the premium is so high that you have have to buy term life insurace combined with something else.

Dreamer

If you do know, give us an example of an investment linked insurance versus term life insurance plus unit trust. And, show us the exact return.

Be honest.

Dreamer

My simple guide to life insurance

Life insurance is an insurance. It is used to protect against of the
risk of lost of income. For example, let's say A is the bread winner
of the family. If something happen to A ( for example die in an
accident), you will not longer have income from A. The family still
need to survive. Life insurance can provide/replace some portion of
the income so that the family still can survive. In some
circumstances, A will suffer some form of disability and can no longer
work, life insurance provide some compensation to help the family to
survive too. Please noted that in Malaysia, the protection against
disability is limited to what is specified in the policy. In advanced
countries like USA, they have disability insurance that pays as long
as you cannot work regardless whatever the cause is. This kind of
disability insurance does not exist in Malaysia. In summary, life
insurance is used to protect against the loss of income and
disability.

So, does life insurance makes sense to you??

1) Do you have dependents?
A) If you are single and have no dependent, it really does not make
much sense to buy life insurance.

B) If something happen to me, I would like to leave something for my
parents. Is your parent depend on your income for survival?? If answer
is no, why buy life insurance?? If you want leave something for your
parent, why not give your parent the money now?? Save the money from
insurance premium and give to your parent now every month.

2) If you are home maker and makes no income, why buy life insurance??

3) If you are married and your family depend on you to provide income,
in general, you should buy life insurance.

4) However, it may NOT be worthwhile for you to buy life insurance if
you have a lot of savings (more than 200K). In general, life insurance
in Malaysia get very expensive for payment greater than 200K.

All my comments does not necessary apply to medical insurance. Do your
own research to find out what is right for you. If your insurance
agent cannot explain to you why you should buy life insurance, why are
you buying??

The very complicated and complex thing about insurance in Malaysia is
that we do not have pure term life insurance. All insurance product in
Malaysia is normally a combination of life insurance, disability
protection and medical protection. In most cases, unless your
insurance agent is good and you do a lot of research, you really have
little or no idea what you are buying. I am not qualify to tell you
what you should buy and how much to buy in each circumstances.

The bottom line is you need to know is

1) what are you protect against??
Life, disability, medical

2) What is the likelihood for each risk at your age??

3) What is the cost for each option??

4) What is the maximum pay and deductible in each situation??

Insurance is used to protect against the situation where you do not
have enough resources to cover. You need to buy just enough so that
when the bad thing happen, you are covered. Buy, you should NOT buy
so much that it costs too much to you.

Dreamer

So, does life insurance makes sense to you??



Insurance purpose is applicable whether you are dependent or not. The justification is in the event of death, it's end of story. But what if someone suffers from permanent disability. With insurance, they might survive for some period of time and think any alternatives how to continue their living.


Commerce Assurance and some of the insurance company came out with a product where the stream of monthly income continue every month in the event of death or total/permanent disability.


For home-makers, usually their husband bought the insurance and the beneficiary is their spouse so that they can continue their normal lives.


The case here is not should but mandatory due to high cost of living. But your point is there


The reason why this happening is Insurance Agent add unnecessary rider to their policy. That what makes the insurance premium becomes so high.



IMO it work both ways. The insurance agent should explain the important of insurance and the prospective buyer should have the awareness to buy insurance for the sake of their family.



The bottom line is you need to know is


The risk of uncertainty in our lives, that we are protecting. That's life. We have to deal with it. And insurance is one of the short-term solution


Accident happened regardless of our age. If it is destined to happened, it shall happened.


I remember some says about low premium at young age. Highly recommend to buy insurance early.

Have to find out more about this.


The ideal portion for your premium is 10% from your fix income.The most is 13%

Eunose Roadster,

<<But what if someone suffers from permanent disability.>>

1) Read the fine print. Malaysia's life insurance DO NOT protect against permanent disability. It protects certain kind of disability as specified in the insurance. It does NOT protect against all kinds of permanent disabilities as in USA.

2) In USA, you get pay as long as you CANNOT work as per disability insurance. In Malaysia, you have to lose an arm or leg or more.

<<The ideal portion for your premium is 10% from your fix income.The most is 13%>>

2) Wrong answer!!!

A) You buy based insurance based on how much is you monthly expenses.

B) Either case, you are buying too much insurance if your monthly premium is any where close to 10% of your income.

<<Insurance purpose is applicable whether you are dependent or not.>>

3) Since Malaysia insurance DOES NOT protect against disability, your argument that you buy insurance to protect against disability even though you have NO dependent is pointless.

Dreamer

I think you should consult any of the insurance agent regarding this matter. If I'm not mistaken, the coverage for life insurance including both:
a) in the event of death and
b) total and permanent disability

If someone paralyzed, should the doctor take out their spinal bone if under your definition it's mandatory to lose your body parts to be considered as permanent disability?

Definition: Total and permanent disability

A person is generally considered totally and permanently disabled if they have suffered a disabling injury or illness which is regarded as total and permanent either because:

the illness or injury prevents them from ever carrying out work for which they are reasonably suited by education, training or experience (or, in some cases, their own occupation) and they are under the regular care and attention of a doctor; or

they have suffered permanent loss of certain limbs or eyes or a combination of them.

In Malaysia if under medical experts that you are permanently disable, the insurance will pay in lump sum based on coverage, and yes there is no continue payment such as US Insurance.

<<The ideal portion for your premium is 10% from your fix income.The most is 13%>>



For me 10% is the good starting point when purchasing insurance.
Coverage is based on our income, not expenses. I never heard people make a presentation to prospective customer refer Insurance as "Expenses Protection" but "Income Protection"

A good insurance agent won't recommended you to add another insurance if existing policy is sufficient enough to cover your income. Some greedy insurance will ask you to add this.

This post has been edited by Eunose Roadster: Dec 7 2006, 12:29 AM

1) You are using Australian definition of permanent disability to apply against Malaysia insurance. How smart is that??

2) Read the fine print on Malaysia protection under disability. You will find that IT IS NOT what you believe to be true so far.


[ <<The ideal portion for your premium is 10% from your fix income.The most is 13%>>
For me 10% is the good starting point when purchasing insurance.
Coverage is based on our income, not expenses. I never heard people make a presentation to prospective customer refer Insurance as "Expenses Protection" but "Income Protection" ]

3) If you are an insurance agent, you get pay MORE commission if you get your customer to buy MORE insurance. So, why do you want to convince your customer to spend less??

4) One of the trick to do this is to sell insurance based on income which DOES NOT make sense. Let's give you a simple example,

A's family lived on 25% of his income. 25% of his income goes to tax. And, he saves 50% of his income. So, if he dies, how much does he needs to maintain his family??

The answer should be 25% of his income = expense.

But, if I can convince you that you need 100% of income, you will buy more insurance and I collect more commission.

Have ever seen a salesperson to ask you to spend less money??

5) If you are spending 10% of your income on insurance premium, you are buying too MUCH insurance.

Dreamer

actually.. i heard dat those from insurance company wont buy 1... cos they noe their company earn so much from their purchase.. hehe.. but actually insurance can deal like a investment..

dreamer101, when u say i contradict myself, what i meant was investment-linked product is good for all-in-one protection including medical card (for me the top benefit). I buy this product bcos it satisfy this needs. Not investment needs.

U wan to invest in this product for its return then by all means go ahead. It might be ur 'top benefit'.

Different ppl hav different views. There is no right or wrong.

Then, why don't you just say it? Explain completely why you choose to buy a particular insurance. It may help someone to make his/her decision.

Say what you mean and mean what you say.

Dreamer

definition for disability for general insurance & life insurance is a bit different, make sure you understand the product before you buy.

anyhow, dreamer101, we are in malaysia, so no choice @@"

Just understand your needs and buy what u think is suitable. Too many ppl dont understand what they are buying.

Insurance company giving training to new comer, is more on marketing, to persuade ppl buy, more than let them understand the whole thing. Well, comission ... is the culprit... duh *

Everybody hav different resons to buy any product. There is no one ULTIMATE reason. If there is, i oredi gazillionaire lahh....

I sense that u have a thing against insurance agent., don't you?

Yes you are right when u say insurance is just a protection for ur family if misfortune happens to you. That is the foundation of an insurance product. But market nowadays demands more than that. That is also why there are many other useful features that can satisfy certain needs.

Hey why does a person buy a car? For the basic need of travelling from point A to point B. Then why does a person buy car with aircond, cd-player, leather seats, turbo engine, big spoiler, etc... when all he need is a car to travel?

Its call evolution.

If u like to compare US and Australia and other countries so much to ours, here.. this link can provide all the answer u need.

http://www.iii.org/individuals/life/

I suggest u read b4 u post again. Bcos u might ask another same thing which this link provides the answer.

Oh btw don't ask us to provide an exact return. Everything depends on market performance. Even bank FD depends on what interest rate set by Bank Negara.

<< Oh btw don't ask us to provide an exact return.>>

Sound exactly like an insurance agent. You want to sell something. You tell people that it is GOOD investment. But, do not ask for the EXACT return.

When a person buy a car with leather seat, he/she see the leather and he/she can touch the leather. But, when a person buy an investment linked insurance, people cannot tell him/her what exactly he/she is buying and how much he/she is paying for the option. Why?

I have problem with BAD insurance agent. People selling insurance with NO IDEA what they are selling. And, selling a lot more insurance to people that do not need it. People DO NEED certain amount of insurance and deserve good service from insurance agent.

And, of course, people deserve this to certain extent. They buy/spend a lot of money on insurance and have no idea what they are buying. Isn't it so stupid to spend so much money on something (insurance) but you have no idea what you are buying and getting.

But, this is so common in financial world. It is NOT in anyone's interest to have SMART and EDUCATED customers. It is harder to make money with SMART customers.

Dreamer

If you read earlier reply, I have already mentioned that I AM AN INSURANCE AGENT.



We do tell. I do tell. Probably your agent don't.
Intangible and tangible products are sold vy differently. Intangible requires high trust. You do not trust insurance. Don't buy.




If you salary is 30k annually, in 10 years (provided no incremental) u will hav work ur way to 300k. If you cannot work tommorrow for the rest of your life, how long do you WANT to survive? How long CAN you survive with ur savings now?




Its our job to make sure they understand. If you do not understand what you have, then either your agent did not do his/her job well, or you choose to be ignorant.



SMART customer stays with a HONEST agent for life. Its what we want.
Pretend-To-Be-Smart customers are those that got burned by smart DISHONEST agent.
Who's fault was it first anyway?


If you want a clear example, lets take you as the example. Tell me your age,your sex,your annual income and what coverage you want(life, critical illness, disability,medical, PA). There is term also if you want. I'll post it here how much u need to pay, what u are getting, what is projected return (high n low).

Black and white. Show to public.

Bear in mind, when we talk about investment, there is no guarantee.

There's no guaranteed return like FD or savings. Those figures you saw in prospectus/policy are projected values.

<< If you salary is 30k annually, in 10 years (provided no incremental) u will hav work ur way to 300k. If you cannot <<work>> tommorrow for the rest of your life, how long do you WANT to survive? How long CAN you survive with ur savings now?>>

In sell, we called this as "bait and switch". In Malaysia, we sell life insurance. It is NOT disability insurance.

1) It does NOT protect against all circumstances where you cannot work

2) It does NOT pay you forever if you do not work. It pays you certain amount of money and that money WILL NOT last you forever

The bottom line is buying life insurance protect against something but it has limitation.

Here we go again. You are just telling people that you need to buy this and that. You DO NOT tell people exactly what it protects and what it does not protect.

For me as an example, I have enough savings to last at least 10 years. I am self insured.

Yes. But, if that investment has higher risk BUT the return is less than FD because of all the fees, why am I buying it??

A higher risk investment need to be at least has higher return than FD or else why bother taking the risk??


Yes, you are correct. But, you could find out about all the fees and exactly how much of your insurance premium is actually invested.

Let use some common sense here.

A) You can buy unit trust directly and you pay commission to unit trust agent.

B) Now, you are buying unit trust from insurance agent and paying commission to both insurance agent and unit trust agent.

Does it takes any critical thinking to realize that you will pay MORE fee in (A) or (B)?? This is what you are doing when you buy investment linked insurance.

Dreamer

Greetings EveryOne,

Recently I came across with a Prudential Insurance Agent ... and what she proposed to me is the PruLink Plan 3 .. AnyOne currently hook on to this insurance plan .. which seems to be working as a plan with savings and protection at the same time ?

Regards,
Hughie

dreamer, there IS disability insurance. They pay u even when u don't work for a week bcos kena denggi or chicken pox or whatever that put u out of work, temporary or permanent.

U asking me to list out what insurance protects and what it doesn't? well boy there are so many types of insurance and many can be customize. There is no ONE answer. Like seeing a doctor, u got cold, they give u cold medicine. U got cough, they give u cough medicine. It still depends on YOUR needs, YOUR problem. Yes everything has its limitation. No ULTIMATE product.

Do you find any ULTIMATE handphone? Do you find any ULTIMATE car? Do you find any ULTIMATE char kuey teow? If you find any ULTIMATE product, please do list it here. I wan to have one.

To me insurance are suppose to be what they suppose to be, insurance. Nothing else, if it is investment linked, it's just a bonus, that's all.

When you buy an insurance policy, ensure that it serves its purpsoe. Don't make it as an investment or savings opportunity. You can have that on other alternatives; FD, UT, FOREX, shares and etc.

<< there IS disability insurance>>

Show me the web site and the product information. Then, I can tell you why it is NOT a disability insurance.

Dreamer

Bingo. That is the whole point of my argument. People are persuaded by insurance agents that they can use insurance as saving and investment scheme. Then, they buy a lot more insurance than they need. Plus, they have no idea how much fees that they are paying for the additional savings and investment option. In a lot of cases, the return is MUCH MUCH less than FD.

They should have buy less insurance and put the money in FD instead.

People who have buy insurance with 10% of their income is definitely buying TOO MUCH insurance.

Dreamer

Greetings Guys,
I was wondering isn't those packages that comes with some opportunity as a saving solution work out as well ? From what I heard from the agent .. basically more than 70% of the monthly commitment goes to the protection stage whereas the balance goes for the savings portion. When the maturity of the insurance policy you bought .. comes to an end .. the savings will be able to withdraw ..

1) Why are you paying insurance agent commission to keep 30% of your money every month??

2) Do you know how much fee that you are paying for doing that??

3) Have you compare how much return that you will have if you just keep 30% of that money and put in FD instead?

4) Do you know how to do that kind of calculation??

Insurance agents are laughing their way to bank for helping you to save your money.

Dreamer

Dreamer,
Do you know what is concept selling? Think outside the box please. And i tought u r a 'dreamer' zzzz....

Example again...a car.
Real purpose = travel from point A to point B.
Why do some ppl put turbo in their car?
Other purpose = Can travel fast with style.
Why do some ppl buy MPV?
Other purpose = Carry heavier load
Other purpose = Safety features.

I bet u r not in sales.

Hughie,
Do clarify with the agent that the return is only a 'projected' return and not guarantee. If she says guarantee, ask her come see me i oso wan to buy. If you want SAVINGS and protection, go for whole life policy. Investment-link only serve for big protection + medical card.
In whole life, there is a guarantee portion for your return, hence the savings u get.

1) My statements applies to whole life policy too. The guaranteed return in most cases is less than FD.

2) BTW, I used to be a sales manager. I just choose to be honest in telling my customer on exactly what they are buying. And, I was successful in selling with integrity.

Dreamer

P.S.: The problem is NOT in selling. You are an insurance agent. Your goal is to sell as much insurance as possible and collect HUGE commission. If someone is STUPID enough to buy too much insurance and giving money freely to you, they deserve whatever they are getting.

It is NOT in your best interest to educate your customer on how to buy RIGHT amount of insurance.

This post has been edited by dreamer101: Dec 8 2006, 04:48 AM

Its our job to ADVISE and RECOMMEND. Its up to the ppl to take it or not. And most of the time we are selling our SERVICE. We probably serve you for the rest of your life or our life. It is not a one-time deal. It is a lifetime deal.

U know how much it cost overhead to keep the business running? With petrol and toll rising everyday other month? U know how many errands we need to run?

U keep repeating we are laughing all the way to the bank. Go ahead save all your money in FD. The bank is laughing in their bank.

Is this the BEST that you can do?? You have NO information or data to prove that my calculation and assumption is WRONG?

I am waiting for you to show a REAL example where whole life insurance is good deal.

I am so disappointed!!!

Dreamer

You are a non-believer. No matter what facts and data i show to you, you will not be satisfied. I've posted the website url for anything on insurance. You've choosed to ignored it.

I've wasted enough of time in this. So to anything you will post again here, my answer is 'whatever'.

To those who are reasonable enough and wanted to know more about insurance, do post your question. Will try my best to answer.

PS: This is strictly my opinion, might not appear to be general opinion.

lets make it simple.... its ur job to sell insurance and take comission as high as u can coz u also need to live ma... so, its a fact that agent does think mainly ab comission.... btw, r u jus started to work? coz the way u say really like a freshie.. " wan to b honest "


no offense though.....

2 years ++...

Your job is to work and take salary as high as u can coz u also need to live rite?

Ya, a handful of agents (not all) are not responsible at all, they are selling insurance for the sake of getting commission, they don't care about customers whether the customers need it or have been overbought. Bare in mind, overbought an insurance serve no purposes instead increase the months expenses burden.

For rich people, insurance is needless although majority still buy it since no harm done because they have enough money to survive their whole life and for their children. For low income group, not much can be saved every months, where got money for insurance purposes. Personal view that insurance is more suit to middle class people.

I agree there are 2 insurances that are essential, life and medical. But buying it with the amount which is affordable relative to your income. Otherwise, you are looking for trouble only since if you surrender halfway, you loss a lot.

I think the most stupid insurance is that monthly premium that pay for buying UT. Why not buying directly from UT company if you want to invest in UT?

Edit: Agents should explain to customers the purposes of an insurance for, coverage, returns (if any), details about it and not just say that is the service (insurance) I got for you, buy it or not while scare people off the loss of income, depandants etc. It is the obligation to explain not service.

This post has been edited by cherroy: Dec 8 2006, 04:43 PM

Alot of upper/rich class ppl buy insurance bcos its estate is creditor-proof. Also bcos the return is tax-free.

Ok to help all the agent provide better understanding of customer's need, I hope everyone that browse this topic who hav bought insurance, mind if you state the MAIN reason u buy it and why you bought from that particular agent.

This will educate us, the agents, to explain the importance of insurance to customer. Thank you!

So what is your main concern when purchasing Insurance. The return or the benefits? Do you set any target to enjoy those extras when you are in your 80's?

Honesty is the key in selling and I do agree that some agent do chase the commission rather than the telling customer the whole idea about coverage. But your bad experience with some insurance agent shouldn't reflect other agents. THERE ARE HONEST AGENT OUT THERE.


This is about ethics in selling insurance and it's up to individuals either to practice it or not. You have to admit even some sales personnel in your previous sales industry fails to obey the code of ethics. And one more thing! The commission that they earn is not easy as you think and it won't last forever.

Edit:
Dreamer 101, you mention that there is no Total and Permanent Disability Benefits where it pays only on certain condition. Mind to elaborate?

This post has been edited by Eunose Roadster: Dec 8 2006, 07:31 PM

You can choose to earn an honest living and actually provide a service to your customer or just sell to your customer. The key word here is "service". And, to service your customer, you need to know your product aka insurance. You need to know when someone need to buy which kind of products.

1) Tax rate in Malaysia is so low that unless you earn very high salary, it is NOT a factor.

2) Rich business person has very good accountant and they hardly pay any tax.



<< So what is your main concern when purchasing Insurance. The return or the benefits? Do you set any target to enjoy those extras when you are in your 80's?>>

1) You buy insurance ONLY for protection and nothing else. You aim to buy insurance with ZERO return.

2) Let's me explain to you in very simple term. If I come to you and say give me $1,000 and I will keep the $500 and put the $500 into FD or Unit Trust, I will return the earning from the $500 after 20 years to you. And, we will do this every month or every year.

If you have any kind of common sense, you will cal me crazy and ask why the hell do I want to do that?? Why don't I invest/save the $1000 myself??

This is what essentially you are doing for whole life insurance or any insurance with return.

3) The problem in Malaysia is that due to lack of competition in Malaysia, you CANNOT buy term life insurance: life insurance with ZERO return. The only thing you can do is buy life insurance with as little return/surrender value as possible.

<< THERE ARE HONEST AGENT OUT THERE.>>

4) There are a lot of insurance agents that do not know insurance. They may be honest but they still could not help you.

<< And one more thing! The commission that they earn is not easy as you think and it won't last forever.>>

5) When you can sell something and collect 100+% commission without knowing what the hell you are selling and people willing to buy it without knowing what they are buying, how hard it is?? Tell me what other kind of sell job has higher earning/commission and least amount of work? This is much much better than MLM. You sell the insurance once and you collect commission every year.

<< This is about ethics in selling insurance and it's up to individuals either to practice it or not. You have to admit even some sales personnel in your previous sales industry fails to obey the code of ethics. >>

6) The bottom line is very simple. If you are NOT smart customer, you can be conned. So, either learn how to shop for insurance or be prepare to lose a lot of money in unnecessary insurance or too little protection.

7) This is the same as everything else. You spend a lot of time shopping for car and house because it is a a large purchase and it is a lot of money. To a lot of Malaysians, insurance is a very large purchase but they do it carelessly and they deserve to lose a lot of money.

<< Total and Permanent Disability Benefits where it pays only on certain condition. >>

A REAL and COMPLETE disability insurance have two conditions:

1) It pays you a monthly income FOREVER as long as you are disabled.

2) It pays as long as you CANNOT work for whatever reason.

Malaysia DO NOT have insurance that satisfy BOTH conditions.

Dreamer

Howcome my company got sell TERM life insurance and also REAL and COMPLETE disability insurance as u have mentioned not available in Malaysia?

Hmm.. i'm in Malaysia. Is there another Malaysia?

Show me the company web site and the detail of the insurance. And, I will show you why you are WRONG. Or, you would have proven that I am WRONG. Let's do it in the open.

I want to be wrong. If low cost TERM life insurance exist in Malaysia, it would be a good deal for many people in Malaysia.

Dreamer

This post has been edited by dreamer101: Dec 8 2006, 11:55 PM

U r saying tax rate on msia is low n vy few rich ppl? u r not.. go out n check out how many bmw n mercs on the road. U say they got good accountant? yea to make sure they pay their taxes well. I know of a high ranking tax-collector. He'll make the big fish beg on their knees to offer them a reasonable solution if these fishy didn't pay tax.

And hell yeah there are Term Insurance in Msia. I would have post it here and the website too... but i'll be advertising or promoting my Company aren't I?

Unless the moderator agreed to let me post it. Go go go!

Or if you are really keen to know, then PM me. I'll reply when I'm free.

Actually yeah, Malaysian tax rates r damn low compared to places like Australia. Very few rich ppl? I don't see that mentioned anywhere. Where did u see that statement?

There's a difference between tax deduction methods and tax evasion. If its done legally, there's not a single thing that your high ranking tax collector can do either.

Yup, there are Term Insurance as well as Total and Permanent Disability Income Benefits in Malaysia for quite some time now.

I'm not promoting anything here either, but yea, the company I represent has the widest range of insurance products in the malaysian market as well as being the largest insurer in the world.

However it is not really heavily promoted as most malaysians tend to dislike products with no returns.

PMed me your company name and insurance detail. I promise you a fair study/research.

That is why I say GOOD accountant. With GOOD accountant, you can deduct your tax legally if you are running a business. There is NOTHING that a tax collector can do to you if it is done LEGALLY.

Dreamer

Hah sorry ha there's no mentioned vy few rich ppl.. wat to do 3am not yet sleep blur blur liao...
Well in Msia for a person earning RM100k annually, he/she will be taxed 27% of income. Source http://www.hasilnet.org.my/english/eng_NO2_1_1K.asp

Having to pay rm20k plus annually.. thats kind of high! A fresh graduate only earn that in a year! Stop comparing Msia to other country lah since we are living in bolehland. Otherwise just imigrate imediately!

Oh insurance is also tax deductable, and the receiving is also tax-free.

Woohoo buying insurance is tax deductable including for your children

Zarth i know what company u r from! hehe... I'm ur competitor.. I don't represent largest in the world, but largest in Msia.

Malaysia Boleh!

[Geminist: Double posts merged]

Hi,

1) Tax rate in Malaysia is so low that unless you earn very high SALARY, it is NOT a factor.

2) Rich BUSINESS person has very good accountant and they hardly pay any tax. Their earning ARE NOT converted into taxable income.

I do agree with you that some people with high SALARY may pay a lot of tax. But, for those people, the insurance needs to pay around 1 million or more or it is NOT worthwhile to buy insurance. The premium for life insurance that pay more than 200K is so high that it is NOT worth the tax savings.

Dreamer

You can PMed me too and I will look into it fairly.

Dreamer