One of my client's mother says that all the brochures distributed by Great Eastern to its agents are not free.

Can anyone tell me whether it is true?

Thanks

Both products is around the same. Just that AIA's plan takes care of my needs now while GE's plan takes care of my needs in later life so they can't give me as much coverage as AIA for now. Eg:-

Hospitalization
GE - RM 720k lifetime limit (RM 90k limit annually)
AIA - RM 300k lifetime limit (RM 90k limit annually)

CI, Death & TPD
AIA - RM 100k
GE - CI - RM 100k, Death & TPD ard RM 50k-100k (sum assured to grow 5%/yr up to 20yrs)

Premium for both plans is RM 200/mth. And I feel the AIA plan suits me better NOW cz if in future I wanna increase my coverage, I can just top up. Of course, the catch is that I must be healthy.

Hie~ Thanks for your info

Hosp - Yea, he din tell me about that bit.
CI - sorry, my mistake, it's RM 50k
In top up, I mean top up the amount that I have to pay monthly, not to top up the coverage.

24, non-smoker, plan to get a car soon

I never heard before car insurance got promotion until now. If any please inform and share with us.

Insurance company generally are reluctant to do car insurance due to high claim, still want to give promotion?

I dun noe gt any promotion o nt..
Bt AIG is quite ok..
It comes with free AAM towing service for 1 year..

I have bought my first life insurance from great eastern, 100K,  protection for death, disability & critical illness (no medical card & pa), the 100K amount according to the agent will grow every year one, premium is RM 3k /year, pay until 80yrs old. Just want to ask, is the price (RM 3K) reasonable? or I overpaid already?
Thanks.

I don't know the product name, I think is just some ordinary life insurance, age is 26.

it's traditional whole life participating

yea. what I mean is, after the full claim from critical illness, your policy is terminated, but as from what I know, before they terminate you policy, the insurer will give you an option to choose if you would like to purchase another life insurance or not, which I think only covers on your death. From my point of view, once you are already a critical illness patient, no insurer will dare to insured you anymore.

A) If you have NO DEPENDENT, you DO NOT need life insurance
    If you want to give money to your sister and parent, why not give them NOW?? Why do you need to buy life insurance and hope that you die EARLIER?? How does this make any sense?

B) if you buy later, it costs more??
    So what?? Buying life insurance when you do not need it is like throwing money into a river.  It is CHEAP to buy life insurance for baby but you will be wasting money.
The KEY question that you should ask is what are you trying to protect against??  What are your NEEDS?

A) Death -> Life insurance
Does not matter if you have NO DEPENDENT
B) Disability -> Something happen and you can no longer work.
This may make sense at the right price.  But, if you work in MNC, you might be covered too.

C) Personal Accident -> PA insurance
This is cheap and high risk for young people.  It might be worthwhile but your job may cover this too.

I need to buy insurance which has no investment component. I believe it is called term insurance. may I know what is the annual premium roughly for a 40 yo non-smoker male looking for a rm200,000 coverage? I have a quote from agent but I want to check whether it is too expensive. So as to be objective, I will not say the premium first.

What is 2d 3d? It is without medical card. I have seperate coverage for hposiptalisation and surgical. Sorry, I am not sure of the term either! Generally, how many years do people go for?

I am paying seperately for Critical illness so my term insurance must be 2d. Anyway, I am offered rm3100 for it. I am not sure how long the term is because I do not want to call the agent yet. But , even if the term goes to 20 or 30 years, can the annual premium be so much higher? Anyway, no medical examination is required according to him.

Thanks bbjslee.

Few questions. Just explain briefly will do.

1) term insurance. whats the difference taking 5 years or 30 years?

2) If my company already has group coverage for medical insurance, do I or people in general still take out medical cards on their own? Can I skip the medical card now and purchase only when I retire or no longer with the company?

3) Is whole life same as term? I read there are traditional producrs like whole life and endowmwnt. where is term life?

4) I also took MRTA for my housing loan. I compare roughly to the premiums i paid for term life and find that MRTA actually serves me better because it is cheaper PROBABLY because it is some sort of REDUCING COVERAGE where the coverage becomes lesser as more of the loans are settled. This suits me because as time passes I no longer need more protection as my kids become independent. Am i thinking correctly? If yes, can we get term life with MRTA characteriestics in malaysia? I find term life quite expensive in malaysia. I want to reduce the premiums. Maybe , I will cancel the term life, then get another smaller property under MRTA for extra coverage.

Thanks a lot./

bbjslee,

WRONG!!!  You do not buy life insurance on how much you WORTH.  If I am worth 10 millions and I have enough savings, I should not be buying life insurance to begin with.  It is BASED on NEED.

The NEED is to have some money to let people get on their feet.  The standard rule is 10 years worth of expenses.  Now, if a person has savings and investment, the NEED decreases.

Insurance is LOUSY way to save money.  So, do not let me get started on Insurance for education saving.

Life insurance is based in NEED.  The NEED to cover between what you HAVE versus what you MAY NEED in the event of your death.

And, up to a point, the PREMIUM could be so high that it is NOT WORTH to cover.  Typically, the number is around 200K.

Dreamer

bbjslee,

<<How to calculate how much you worth is very subjective.>>

I do not use subjective mean to calculate net worth.  If my asset minus liability = 10 millions, I am worth 10 millions.  I do not use BS such as FUTURE INCOME.

Come on, are you telling me that you DO NOT KNOW how to calculate net worth??  What is so subjective about asset minus liability??

<<And secondly, is a premium high or not depend on many situations and it is up to the policy owner to decide.>>

This is another BS.  You and I know perfectly well that life insurance premium do not increase linearly on ALL coverage amount.  After certain coverage amount, the life insurance premium grow exponentially.  So, it is INCREASING very expensive to increase the coverage amount.  Now, of course, insurance agents do not really want to tell customer that.  Or, they will know how to bargain better.

This the same as shopping for anything.  If you are approaching the high end of any product, the price increase exponentially.

<<And on your case, 200k the premium is too high, >>

At my circumstances, the number is around 200K.  After 200K, the life insurance premium increase exponentially.  It may no longer worthwhile to increase the coverage.  For example, for coverage of 400K, the life insurance premium is NOT 2 times of the 200K.  It is more than that.

A person MAY still buy the higher coverage.  But, they should know that they are PAYING A LOT more for greater than normal coverage.  They better be sure that they NEED it.  Or, they can do something else.

Get a quote with multiple coverage amounts, then, a customer can figure this out.

Dreamer

P.S.: Why am I teaching Insurance Agent about their own products??  They should know this.

bbjslee,

1) I am talking about NET WORTH.  And, what has a person's life worth got to do with LIFE INSURANCE?? It is IRRELEVANT.  It is ONLY relevant to INSURANCE AGENT so that they can over-sell the customer.  So that, a customer will buy TOO MUCH life insurance.

The MOST that a person should buy is 10 years worth of income.  10 years worth of expense may make sense.  If YOU buy too much life insurance, you expense level went up, you need MORE LIFE INSURANCE.  This makes INSURANCE AGENT even happier.  More to sell.

<< A bread winner maybe has a networth of 50k, after minus his various loans, but he has a wife who have no financial income, and 3 young children. So his life only worth 50k?>>

WRONG QUESTIONS!!

2) Who care what his life worth?? The CORRECT question is what is his income?? If he is NOT surviving on current income to begin with, buying life insurance is not what he should be doing to begin with.

3) If his 50K does not cover 6 months of expenses, he should not be buying lfe insurance.

<<- Who taught you your life worth = your networth? I would really like to know.>>

4) I do not use BS like life worth.  I use REAL NET WORTH.  You choose not to listen.
<< GE, Supreme Livin' Care Plus. Traditional 3D Participating Policy.
Age 30, Male, Non smoking. Class 1 occupation.
Basic sum assured: 100,000. 3430 p.a.
BSA: 200,000. 6860 p.a.
BSA: 300,000. 10,140 p.a.
BSA: 400,000. 13,520 p.a.
BSA: 500,000. 16,900 p.a.
In your example, 13520/6860 = 1.97!! It is even less than 2!!!
Tell me does it increases exponentially?
>>

5) I told you that my CIRCUMSTANCES and my QUOTATIONS which has NOTHING to do with your 3D BS.

6) Now, isn't it better for a CUSTOMER to see a table like this and let them decides?? So, they can shop and budget for the RIGHT coverage??
The COVERAGE should be based on NEED.  And, a person SHOULD KNOW what each coverage cost and trade off.  10 years is the maximum amount.  Life worth is IRRELEVANT.  If you use life worth, you will be BUYING TOO MUCH coverage.

<<BSA: 500,000. 16,900 p.a.>>

Let's take this as an example, to buy 500K coverage, a person should have at least 50K worth of gross annual income based on 10 years rule.  Now, if you are making 50K per year, does it makes sense to pay $17K per year on insurance?? Aka 34% of your income?? No.

It does not make sense.  We do not even have to talk about BS such as life worth.

Stop doing "Bait and Switch".

It is WORTHWHILE for a person to buy certain amount of insurance.  A good insurance agent work with customer to find out the RIGHT and REASONABLE amount instead of BS like life worth.

What I am AGAINST is people doing "Bait and Switch" and FUD.  I welcome people to EDUCATE and come up reasonable number and calculation.

Dreamer