Ok...

I agree with you that "Insurance is ONE of the largest purchase in a person's life. You EARN your money in the hard way. So, spend it WISELY".


We must understand that the problems faced by AIG in US don't have anything to do with its insurance businesses. AIG in USA is still earning money but it is not earning fast enough to cover the losses incurred by AIG's Financial Products Unit in London... If there is something wrong with its insurance businesses, do you think that other insurance companies or financial institutions will be interested in taking over them? I am just telling the truth...


Yes, you are right, dreamer... Every insurance business is still growing except for ILP and motor insurance...


This post has been edited by lcl832002: Mar 9 2009, 04:51 AM

For motor insurance, everyone with a vehicle has to buy it. However, many people have difficulty in renewing their vehicles especially lorries. Why? Please read my post titled WHY IS IT VERY HARD TO RENEW MOTOR INSURANCE (THIRD PARTY LIABILITY) IN 2009?.

For ILP, the world economy now is in crisis. This situation will affect the returns of investments. Most of us are not high risk takers especially during the time world economy is in trouble.. People who can't take high risk will not consider buying it. As a result, this group of people will prefer traditional life insurance plans which offer guaranteed features. Therefore, ILP will be affected significantly. But, for life insurance plans other than ILP are generally growing in terms of new cases.

Please correct me if I am wrong...

Please read PERAKAN VOICE. Hope you know Mandarin.

For ILP, from what I know, ILP is a good plan provided that no riders are attached to it as the premiums of the riders are not fixed. They will affect the investment value of the ILP in the long run. If we attach a lot of riders to it, the ILP may lapse in the future if the cash value is not enough to cover the increase in premiums of the riders and the insurance charges as they increase as we get older. To avoid this situation, policyholders have to pay extra premium. How I know this? I heard a lot of complaints about their ILPs from many policyholders not only from AIA and Prudential...

Please correct me if I am worng.

This post has been edited by lcl832002: Mar 9 2009, 09:04 PM

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

You can ask your friends who know Mandarin to read for you...

Thanks for your info...

Can you tell me the name of the plan from AIA?

Please feel free to read my blog if you are still not confident with AIA. Just click here.

This post has been edited by lcl832002: Mar 11 2009, 10:50 PM

Life insurance - RM 300,000
36 critical illnesses - RM 50,000
Personal accicent - RM 200,000 to RM 300,000
Medical card - RM 60,000 annual limit, RM 200,000 lifetime limit

Monthly premium around around RM 310.

I seldom sell ILP to my propects because I know its weaknesses. If you are only care about protection, you can buy a plan like mine. I bought it when I am 24 years old.

My plan is as follows:
i) Whole life insurance RM 300,000. When I am 57 years old, I can surrender it at RM 120,512 (guaranteed). Or stop paying premium and still get the protection of RM 233,100, instead of RM 300,000, until I reach 100 years old.
ii) Medical card - annual limit RM 60,000, lifetime limit RM 200,000.
iii) Personal accident - RM 200,000 (death benefit) to RM 300,000 (serious disability benefit), RM 2,000 annually for each accident (medical reimbursement).
iv) Critical illness - RM 50,000.

My monthly premium is RM 306 only.

What do you think of my insurance plan? Just for sharing. I don't buy ILP because I can use the money to invest in gold, shares and others. So, my insurance plan is purely for protection only.

Thanks for your honest words about AIA... I think insurance agents must be ethical like you. We should never say the other insurance companies are not good. In fact, we all are working in the same industry. So, it is pointless we say bad thing about one another...

Maybe I am a conservative person. So, I prefer whole life and endowment plans as they give me something that is practical, realistic and not influenced by the performance of the market. As I am still young and healthy, I just bought RM 50,000 last time when my income was not stable yet. I will increase the critical illness coverage soon.

We call it as Wholelife Plus Non Par (WLNPP).

If you are 24 years old, non-smoker, male and working in office (insurance budget, RM 200 per month):

your plan can be as follows:
i) Whole life insurance RM 100,000.
ii) Medical card - annual limit RM 90,000, lifetime limit RM 300,000.
iii) Personal accident - RM 200,000 (death benefit) or RM 300,000 (serious disability benefit), RM 2,000 annually for each accident (medical reimbursement). This plan is an offer. So, you may not be able to buy it in the future.
iv) Critical illness - RM 50,000.

Your monthly premium is RM 164 only. It is adjustable to suit your insurance needs and monthly budget.

If the coverage for critical illness is changed to RM 100,000, instead of RM 50,000 which you think is not enough, the monthly premium is RM 193.

This post has been edited by lcl832002: Mar 12 2009, 01:56 AM

Generally, there are 2 critical illness riders called PCLR and CLR. What is the difference?

For PCLR, its coverage is until 70 years old. For CLR, its coverage is until 100 years old.

Let say you buy a life insurance with sum assured of RM 100,000.
a) If you buy PCLR with sum assured of RM 100,000 and attach it to the life insurance, once you claim RM 100,000 from PCLR, you life insurance RM 100,000 is still there to protect you. In this case, the premium for PCLR is higher than CLR.
b) If you buy CLR with sum assured of RM 100,000 and attach it to the life insurance, once you claim RM 100,000 from CLR, you life insurance RM 100,000 will become RM 0. In this case, the premium for CLR is lower than PCLR.

Can you see the difference? So, if you want to buy CLR, when you buy life insurance, you must make sure that the life insurance covers you until 100 years old. Why? There are several life plans from AIA that cover us until 85 or 88 years old. Let say you are very healthy and you can live until 100 years old. By the time you reach 85 or 88 years old, your life insurance will be surrendered automatically by AIA. Your CLR attaching to it will also terminated by AIA as well.

There is one fact you must know when you buy critical illness. For details, please read A CLAUSE TO WHICH WE HAVE TO PAY ATTENTION WHEN BUYING A 36 CRITICAL ILLNESSES PLAN.

If you are interested to know more, please pm me or leave a post here. Thanks...

Different? You mean the age 100 for PCLR? The information is already outdated. From the website itself, you will know because it is still using the old AIA logo.
Based on my AIA Sales Illustration System (SIS), PCLR covers us until 70 years old. I am sure about that as I have this plan myself. PCLR can be attached to whole life insurance, not only ILP.

I will not provide wrong facts and figures to you as I have no reason to do so, right... If consumers can understand and get the latest information from website, insurance agents should look for other jobs already...

This post has been edited by lcl832002: Mar 12 2009, 03:32 PM

Yes, you are right. Let say person A buys PCLR and life insurance each with sum assured of RM 100,000. If he is diagnosed with one of the 36 critical illnesses and dies several months later, his family will get RM 200,000 (RM 100,000 [PCLR] + RM 100,000 [life]).

After you claim the PCLR, you still need to pay the premium for your life insurance unless you add a rider called WP/PCLR to your life insurance. It is a waiver of premium. With this rider, after you claim PCLR, you don't have to pay any more the premium of the life insurance.

Remember, PCLR covers us until 70 years old only, unlike CLR...

This post has been edited by lcl832002: Mar 12 2009, 06:12 PM

You are welcome !

For AIA Berhad, all traditional life and endowment plans cover death and serious disability (TPD) due to an accident and a critical illness. TPD benefit is given free to standard life. However, TPD benefit is in force only before we reach 60 years old. In other words, if a person becomes disabled due to an accident or a critical illness when he is 62 years old, for example, he will get nothing at all. So, in your case, you will get another RM 100,000 provided that you are not above 59 years old by the time you become disabled due to the same critical illness (TOUCH WOOD).

Yes, commit suicide is also covered by all AIA traditional life and endowment plans only after one year from the issue date. Let say, person A buys a life plan from AIA with an issue date on April 1, 2009. His family will get full compensation from AIA only if he commit suicides after April 1, 2010. If he commits suicide on March 1, 2010, his family will only get back all the premiums paid by him without interest. I think this principle is also applicable to other insurance companies as well.

I hope you have no intention to commit suicide due to economic downturn. Haha...

This post has been edited by lcl832002: Mar 13 2009, 01:55 PM

In your case, from I know, both of your assets including the insurance proceeds will become an estate. Both of your estate will be used to settle both of your debts like goverment tax, if there is any. After all your debts have been settled, your estate will be distributed according to the Distribution (Amendment) Act 1997 in West Malaysia and Sarawak if you are non-Muslims. For details, please read my blog titled Estate Planning and the Distribution (Amendment) Act 1997. You can click here too.

So, it is very important to make nomination when you buy life insurance and other plans. A will doesn't make sure your nominees will receive the insurance proceeds fast if you never make any nomination. So, before it is too late, please do some changes to your insurance plans like adding your parents' names as well. If both of you already have a lot of assets, it is better for you and your wife to write a will.

This post has been edited by lcl832002: Mar 13 2009, 09:55 PM

Ya, it is a traditional life plan. To be specific, it is called whole life insurance. It is different from endowment plans.

This post has been edited by lcl832002: Mar 14 2009, 12:04 AM

The plan covers us until 100 years old. That's why it is called as whole life insurance. It depends. For whole life insurance, everything is guaranteed including its surrender value. However, you can't expect to get a lot of return. For endowment plans, if the insurance company earns a lot of profit, then you will get a dividend from 4 % to 7 %. For ILP, part of your premium will be allocated to buy certain funds you want. In this case, its investment value will be heavily influenced by market changes. Can you see the difference?


Estate here means frozen assets. Once our assets are frozen, we can't touch them any more until our debts are settled. Let say, a person's total asset is RM 1000,000 and his total debt is RM 500,000. He has to settle his debts RM 500,000 first. In other words, his family will only get RM 500,000, instead of RM 1000,000. If he dies without a will, the process of transferring his assets to his loved ones will take more than several years and his assets will be distributed according to the Distribution Act. If he dies with a will, then the process will be shorter and his assets will be distributed according his will. In sum, a will only smooths the process of transferring his assets to his loved ones after all his debts are settled.

For insurance proceeds, it can be considered as estate if he doesn't make any nomination. If he does, then the insurance proceeds will be received by his family from the insurance companies in less than one week provided that his family has sent all the required documents like death cert to the insurance company. This is the beauty of life insurance compared to other financial products.

I hope you can understand better now...

This post has been edited by lcl832002: Mar 14 2009, 01:27 PM

Hospitalization is covered only if we have medical card, critical illness or personal accident plan, depending on the reason a person is hospitalized. No life insurance will cover our medical bills for sure.

The premium-paying-period for endowment plans is much shorter than whole life insurance. For AIA Berhad, it can be 8, 10, 15, 20 and 55 years.

When the period is shorter, of course, the premium for endowment plans is much higher than whole life insurance even though both plans have the same amount of sum assured.

The sum assured for whole life insurance is fixed unless you add premium. Whereas, the sum assured for endowment plans will increase depending on the performance of AIA Berhad. If AIA Berhad performs very badly, a dividend of 4 % is payable to its policyholders. If AIA Berhad performs very well, a dividend of 7 % is payable to its policyholders. The premium for endowment plans is guaranteed to be fixed.

The return for endowment plans is not guaranteed but it must be at least 4 % for AIA Berhad no matter how bad AIA Berhad performs. For Investment Linked Plans, the return can be zero or negative if the funds you choose perform very badly.

Endowment plans are more for saving for child education and retirement. It still gives protection at the same time but not very high like whole life insurance. So, the return for endowment plans will be higher than whole life insurance. However, the surrender value you get when you surrender your endowment plan is not guaranteed, unlike whole life insurance.

So, I will suggest people to buy whole life insurance first as it gives more protection to them. After that, if they want to save money when they earn higher income in the future, endowment plans can be considered.

I hope it helps...

This post has been edited by lcl832002: Mar 16 2009, 12:24 AM