well lin00b, basically agents earn more on traditional products than ILP

maybe different companies have different commission scheme. As i know traditional products like Critical Illness and whole life products yield more commission. But anyway, starting from next year every insurance company will have to disclose agents commission in ILP products. Better for the customer!

emm co-insurance actually not a plan. its just part of the expense that you will need to pay urself during claims. For example: medical cards they have 10% co-insurance and some companies have max cap like RM 500. As HHalphaomega said its all depends on companies.

Takaful plan? or Investment link?

There's a product from GE called MediCare 100 which offers whole-in-one medical benefits until age 100 but it's more like a whole life policy than a a standalone medical card.

Actually GE does have standalone medical card ---GMC 2

i think covers till 80 would be safer. As our lifespan is bout 72. And true PruHealth is only a rider, it must be attached to a life policy. if you finding for cheap medical card. look for General Insurance company.

However, you must take note of few things,

1) whether its is guaranteed renewal

2) Make sure u take a higher limit coverage ( lifetime and annual limit)
This is because if your coverage is very low, what you want to do if your limit is finished? buy another one? No life insurance company would accept you by then.

3) Check the co-insurance charges and also the range of room and board fees.

Yea, Morning is true. Well, you might end up loading ( extra premium) or they will not accept you. From the same company? You just finished their limiits. Some dont even let you renew the medical card every year if they know your health are getting worse and do you think that time other company will accept you? Thats why guaranteed renewal is important also.

btw, 500k is already not a low coverage. If it happen that the person only encounter 3 accidents and after that he is fully recovered ( without any fractured or broken body parts), then the company might consider accept him. However, normally people will not use up so much in accident without serious permanent injury.

On the other hand, if it happens that the person used up the limits not because of accidents but illness such as leukemia, kidney dialysis, or cancer treatment, etc. Those illnesses need continuous treatments and when he used up all the limits, do you think any companies will sell him and then they need to prepare to settle the bills more than the patient ever pay? (lets say RM 500 a year, 50 years cost bout 25000, just a claim might cost away 30k).

Let say for the same situation you given above, company has right to not accept you, you have no legal binding that company has to accept you. It may just happen that no companies wanted to accept you. I have a lot of customers unable to buy medical cards because of that. Not that you need to buy the highest, but normally people always have the mindset that ' i just want the cheapest and lowest protection only'. More than 300k would be fine.

This post has been edited by weikian: Jan 4 2010, 01:30 AM

i think their company might already provide medical cover before 60.

Nice plan. Just make sure with the agent about the savings. Because i think the benefits they put in is quite a lot. And the insurance charges will increase with your age. Maybe your premium and savings will not be able to cover the high insurance charges at high age.

We are not supposed to say the plan is not good. The plan actually had its own benefits. The problem is whether is it what you need or want. PA and medical might be good enough but the protection is still not complete. Insurance is like umbrella, when raining heavily, you will hope that the umbrella would be bigger. However, when you do not have an umbrella then its already too late to go home and get one.

Get the most protection from what you can afford. Insurance is a lifetime commitment, so think twice.

H & S might able to pay for CI medical fees. But CI main purpose is to replace the income during the diagnosed or treatment of CI. Consider tha PA and Life only pay out when death. I wouldn't say that 50k is worthless cover, but 50k is definitely not enough. Besides, we should allocate 10% of our income for insurance.

Remember no body ever went bankrupt from paying premium, however people do went bankrupt for not paying the life insurance premium.

Pjusa, 10% is the maximum amount and all the insurance is included in it. As i know, we got 5 main parts to cover,

1) Death
2) Total Permanent Disability
3) Medical card or H&S
4) Critical illness
5) Personal Accident

Each parts are equally important and short of one you will still considered under insured. Some of the products in market cover all the protection with only RM 150 per month. Consider your income of 3k , RM 150 is only 5%. Although 10% might not enough but try to cover all with it.

Maybe you all prefer PA and Medical Card but my opinion is that even though the chances might be little, i wouldn't wan to gamble with my life. This is just my opinion and i totally respect your choice.



This post has been edited by weikian: Jan 11 2010, 10:54 PM

Separate investment and insurance is good provided that you have the discipline to invest the rest of the money and also if you were familiar with other investment method. My opinion. Term insurance and invest the rest would be good for those who have knowledge and time to do the investment.

Traditional and ILP both have their benefits.
ILP you can get big protection in young age with cheap premium. However, when we are getting older, the insurance charges will increase drastically. Thus, if you were paying quite a low premium for that, your cash value inside the policy might not sufficient to cover the insurance charges and riders.

Traditional policy might be more expensive compared to ILP. However, the premium is fix because it do not have insurance charges for that. Another benefits is that the death benefits will continue to increase with age. Lets say you buy 100k protection at age 30, the amount of protection will increase with the cash value and it might reached 400-500k, and with the same premium you pay. Like me i bought a life insurance at age 1 about RM20 per month, now i still paying RM 20 per month and the protection is massive.

Besides, traditional and ILP both have premium holiday. Means you still can do the same thing as your friend after paying for a certain years. After all, Traditional or ILP is both depends on your needs.

Insurance charges are charges that they charge on your protection and also riders attached. Lets say RM 100 monthly now and his age is 25. Insurance charges and commission will be deducted from the RM 100 and the left will be used to buy units for investment. Because his age now, his insurance charges will be lower than the premium, and therefore you can see some growth in your cash value as there are money left to buy investment units. However, insurance charges might increase with your age just like medical card. You can still continue to pay RM 100 premium, but if the insurance charges is more than RM 100 a month, then company will sell off your units to pay the insurance charges. So now, you can still pay RM 100 BUT your cash value will decreases consequentially until there are no more investment unit in your policy. That time, you can choose to pay higher premium or lapse your policy. That's why its better to pay higher premium now to build up your cash value.

ILP:
Pro- Able to enjoy higher protection with low premium at low age.
Cons- The insurance charges will increase along with age, and your value inside might be eroded.

Traditional :
Pro- The premium will never increase, no insurance charges incurred. The death benefits and cash value will increase with your age.
Cons- Premium of the same protection might be more expensive than the ILP

Conclusion, traditional and ILP run together would be the best. Just my opinion.

This post has been edited by weikian: Jan 13 2010, 05:13 PM

Yea, there are no best products in the market. Agents are the most important factor to cater a plan that will suit their clients' need and affordability. Most importantly, client should be able to get to the agent when they need them the most. That's why they get the commission for!