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.

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%

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

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

I get your point in comparing insurance in Malaysia and USA. But there are many factors that must be considered. Insurance industry in USA is very big where competition to produce product that can cover just about anything. Total FYPC (Financial Year Premium Collected) is in Hundreds of billions, compare to malaysia only few company ever reach 1 Billion annually. That's why they can afford to pay LTD and STD continuously. We have TPD but the approach is different. But at least we do have alternatives for TPD, and some people ARE great full when receiving lump sum payment for TPD.





We have our own SOCSO but the current system is WAY behind USA Social Security Scheme. we heard stories about the bureaucracy when try to make claims. And yes the payment is in lump sum, not continue.

Dreamer 101,

Making comparison is good, but keep criticizing won't help either. Yes you are disappoint with the insurance product. Another great thing is you are self-insured. But remember our insurance industry is not that big to give such great benefits and not everyone is lucky as you.



This post has been edited by Eunose Roadster: Dec 9 2006, 09:21 AM