I have one question. If an insurance policy for saving plan already paid for 15 years
and Net surrender value 15k. If TPD and insurance company paid out 50k, the Net surrender value still valid?The policy will void once TPD occurs?

No.

Yes, once full sum assured paid out upon TPD, policy will be void.

Thanks for your reply. Let's say we continue to pay the installment until Net Surrender
Value exceeding Sum assured 50K, once diagnosed with one of 36 critical illness,
will insurance company pay out sum assured or net surrender value?

Edited. Double posting

This post has been edited by netcrawler: Dec 31 2015, 03:38 PM

Since I don’t have any information to go with, the answer will be generic and assuming this savings plan is NOT investment-linked. Rightfully the surrender value should not exceed the sum assured payable.

In those circumstances that this does happen, insurance company will pay the higher amount.

This is not ILP. I'm noob in calculate the return.Is it impossible for the Net surrender value to
be exceeded Sum assured eventhough we continue paying after stipulated time till
maturity?

HLA dont have right?

HLA don't have .

i won't say impossible. can happen and i have seen some before. i don't know how to explain.

anyway, to keep it simple, rightfully in the case where surrender value do exceed the sum assured, the surrender value will be payable. anyhow, you can always refer to your policy contract, and read through to the terms and condition on what they will pay if death or TPD or CI.

AIA & GE has. For AIA, visit the website, and click on AIA@MyService and sign up accordingly.
If you're looking for money paid record, you will get it every year end/ new year where they'll send a life insurance premium statement to your corresponding address.
Just make sure your address is up to date.
Cheers.

Regards,
Jaclyn Tan

Are you looking to surrender your plan?

Is insurance premium going to be cheaper, considering the latest article attached?

http://www.thestar.com.my/news/nation/2016...oved-ones-will/

Yes, Life Insurance premium had went down. Such as Allianz PremiumLink (ILP) Life/TPD Sum Assured RM500,000 and premium only from RM100/monthly.

But as of Medical Insurance, the premium are much related to current medical cost. Only if the medical treatment cost reduce, then LIAM will have to lower the medical insurance premium to inline with the medical cost.

Some good quote from the articles:-

"Get sufficient medical coverage while you’re young and healthy instead of trying to buy insurance after you’ve been diagnosed with an illness, Liam’s Toi advises."

"Always add a zero to your annual income to gauge the protection amount needed, Kho offers, because this sum will give your family at least 10 years to adjust to the change in their financial situation."

“Unlike in other countries where consu­mers ask: ‘How much will the family get when I die?’, Malaysians want to know how much they will get back from the policy before they die.”

I don't know how you buy life insurance, but here's my take on buying life insurance (otherwise, it doesn't quite make sense to buy anything more than our liabilities):

There's an age-old saying from the far-east regarding wealth, that every 4th generation starts over from nothing.
There will be a first generation that works hard and builds something for himself.
Then comes the second generation that succeeds it, and expands the wealth.
Growing up rich, the third generation spends it, and likely spends it all.
Growing up rich, the fourth generation is built and trained to spend, but now has nothing to spend.

Life insurance can break this cycle but of course it cannot do it alone.
Some measures of control is needed to ensure a continuous flow in the pipelines into the right hands for the right purposes.

Your estate planning such as a will, trusts, are the pipes and joints. Life insurance would be the water tank full of water to last throughout the dry spell.
This sounds great but how many can actually afford it? That's true! Cost is real and the pinch is real!
But like all things progressive, everything started somewhere with the first step, which laid the foundations to the second step, the third step and beyond.

The important thing is for us to start. Equally important for our successors to continue to do the same, hopefully in a larger amount.

Hey y'all,

Been lurking here for a while. Thought I'll just pop in to say 'hi' and maybe put out some burning questions I've had for quite a while.

I am interested in medical, CI, personal accident insurance actually. Bought one before from college friend (ex-agent) more than 10 years ago but fren abscond so been feeling eeky about insurance ever since. But I am turning 39 soon, and before rates go up for me (heard that from the grapevine), I am getting interested again.

I do have a few questions if you guys don't mind:

1) How do you budget what the sum assured or payouts will be what you need? Would you look at costs of treatment (surgery, medication, consultations..etc) for the 36CIs + costs of staying in hospital bed per day ...etc.? (someone mentioned in v2 that factoring in 4% for inflation every 10 years is probably a good idea as well..)
2) How do you budget how much you would need in the event of early or advanced diagnosis of 36CI? Is this the one that is the norm to put a zero behind your annual salary?
3) Okay, a bit of a detour here. Someone did mention to me that GH actually has all the infrastructure in place to treat patients who are dignosed with any of the 36CI. That was his argument for not getting insurance. I assume most of the coverage for medical/health/36CI insurance is budgeted for private hospitals? So private hospitals are better than GH? really..?
4) If insurance is viewed as a form of hedge against potential risks, returns shouldn't be a consideration right? And yet I see many talking about cash value, cashbacks, discounts ..etc. being a factor in deciding the most suitable insurer or policy. What is more important here, the potential returns or the protection?
5) If you are getting a new policy, would you consider the guarantee that premium rates will never go up as a priority?


Actually I got plenty more, but I dun wanna hog the thread too much. Anyways, when I bought before I was never shown a sales illustration or product disclosure sheet. Never given any brochures either. Since I've had the experience of having a "close" friend who would quit her agency, I am prepared to deal direct with insurance companies if need be. Would help to have a reliable agent as well.

Any takers for my questions?

ETA: that 4% inflation thingy for my Question 1

This post has been edited by Tutter: Jan 4 2016, 02:43 PM

1) How do you budget what the sum assured or payouts will be what you need? Would you look at costs of treatment (surgery, medication, consultations..etc) for the 36CIs + costs of staying in hospital bed per day ...etc.? (someone mentioned in v2 that factoring in 4% for inflation every 10 years is probably a good idea as well..)
A: There some general strategies. In general, most people would use their liabilities as a benchmark of roughly how much sum assured they need. Some also go by their business annual turnover, in the hopes that cash is readily available to their wife and kids to keep the business running. Some just go by the going rate of funerals for the next x amount of years. To sum up, it's wealth retention, wealth creation, or simply just last expenses.
Medical inflation is different from everything else.
Medical inflation as reported by KKM is around 14%, while private sector is claiming it to be above 23%!

2) How do you budget how much you would need in the event of early or advanced diagnosis of 36CI? Is this the one that is the norm to put a zero behind your annual salary?
The norm is far from putting a zero behind your annual salary. In fact the norm is within the range of 30-50k, under-insured. It is different from yesterday's Star article simply because Malaysians in general do not value life insurance as much as the next iphone, the next property, etc.
10-times our annual salaries is a suggestion, a yard stick to which we can choose to follow or not to follow simply because our finances differ.

3) Okay, a bit of a detour here. Someone did mention to me that GH actually has all the infrastructure in place to treat patients who are dignosed with any of the 36CI. That was his argument for not getting insurance. I assume most of the coverage for medical/health/36CI insurance is budgeted for private hospitals? So private hospitals are better than GH? really..?
Yes, GH has all the necessary equipment to treat majority of our illnesses. In fact, whatever private hospitals can't provide, the patient will be referred to GH.
To best answer your question, I provide an illustration:
A can of Coke is RM2 at your local kedai kopi. But the same can of Coke is RM9-RM15 in a french restaurant or a hotel.

4) If insurance is viewed as a form of hedge against potential risks, returns shouldn't be a consideration right? And yet I see many talking about cash value, cashbacks, discounts ..etc. being a factor in deciding the most suitable insurer or policy. What is more important here, the potential returns or the protection?
Every life insurance policy comes with some kind of savings factor. It is a good feature but unfortunately the savings feature has caused many to confuse it with investment, and place the ROI at a higher priority than it should. In fact, your question is the question I personally ask my potential clients when it comes down to them biting on the potential returns.

5) If you are getting a new policy, would you consider the guarantee that premium rates will never go up as a priority?
Yes I would especially with medical insurance. I won't want to wonder if my funds can stomach my medical insurance premiums when I'm 70!
I have better, happier plans for my money
Besides that, fixed premium payments makes it easier for me to budget myself.

Too bad, there is no such thing of fixed premium for medical insurance.
If there is, I reckon it will be the hottest selling insurance already.

The premiums can be fixed with an ILP. Yes, the cost still will increase but I can effectively fix my premiums at a certain level.

1) How do you budget what the sum assured or payouts will be what you need? Would you look at costs of treatment (surgery, medication, consultations..etc) for the 36CIs + costs of staying in hospital bed per day ...etc.? (someone mentioned in v2 that factoring in 4% for inflation every 10 years is probably a good idea as well..)
- Sum assured should always factor in all the inflation in terms of cost of living increased in the next 10, 20 or 30 years. It should also factor in all the commitment that you have right now that you need to pay off in the event you are no longer able to work due to critical illness or worse, death. Which your immediate family will have to take on your burden.

2) How do you budget how much you would need in the event of early or advanced diagnosis of 36CI? Is this the one that is the norm to put a zero behind your annual salary?
- Putting another zero on top of your annual salary is a rule of thumb. Of course there is no right and wrong going 5 years or 10 years. It really depends on how long would you want your money to last upon death, disability or a critical illness. Ideally we would want atleast 10 years of income to make sure we don't have to worry about money for a period of time.

3) Okay, a bit of a detour here. Someone did mention to me that GH actually has all the infrastructure in place to treat patients who are dignosed with any of the 36CI. That was his argument for not getting insurance. I assume most of the coverage for medical/health/36CI insurance is budgeted for private hospitals? So private hospitals are better than GH? really..?
- GH has all the facility available. Whatever the Private Hospital can't provide, they will refer to GH, vice versa if GH hospital is full, they will refer to private hospital if you can afford. Else have to wait for your turn.


4) If insurance is viewed as a form of hedge against potential risks, returns shouldn't be a consideration right? And yet I see many talking about cash value, cashbacks, discounts ..etc. being a factor in deciding the most suitable insurer or policy. What is more important here, the potential returns or the protection?
- protection is the key point because the cash value is not guaranteed (Investment linked plan) unless you opt for traditional policy. You have to understand that insurance function is to restore one's financial back to its original should they fall into any risk (death, tpd, CI). It's not a mean to make "money" out of it like a saving plan.

5) If you are getting a new policy, would you consider the guarantee that premium rates will never go up as a priority?
- You need to get it right, premium (the amount you pay) is fixed if it's an investment linked product (meaning if you opt to pay RM200 each month until 100 yr old, it's RM200 all the way) , however it's the COST OF INSURANCE (COI) is the one that will keep increasing. Which is why the fixed amount of premium that you pay to the insurance company is used to purchase units in an investment fund to generate return. With this return, it's used to offset the cost of insurance overtime.

Which comes back to your question 4 which the cash value is actually used to pay off the cost of insurance. Taking out the money from the cash value might result in your policy not having enough funds to reinvest and generate enough return and you might need to top up in the future.

Again, no investment is guaranteed.

I hope that answered your question.

This post has been edited by lifebalance: Jan 4 2016, 04:21 PM

^^^ You guys are superstars. Thanks for the replies.

I might have confused a couple of things. If I am solely interested in medical/health/36CI/TPD/personal accident only with NO ILP or investments attached, that means my premiums (the amount I am paying every month/year) should not increase at all?

Assuming I am getting a new policy now that will cover me until I am 90. I guess I will be paying the same amount every month/year until I am 90? Is this standard practice across the board for all insurers or do they differ by policy?