For traditional endowment policy, the total sum assured already added in your cash bonus and surrender value. Which means that if the payout is suppose RM50,000, by 15 years later it should be higher than RM50,000.

Your surrender value will never higher than your sum assured because your sum assured is always added the surrender value. Yes, saving will void once TPD occurs.

Did you mean if the initial sum assured is 50K, the sum assured will increase over the time because
increase in Surrender value and cash bonus. For Example,

Initial Sum Assured = 50K, Cash Bonus after 15 years = 5K , Surrender Value after 15 years = 30K .

The Sum assured (After 15 years) = 50K + 5K + 30K
= 85K

No no. doesn't work that way. I need to point out certain policy works differently due to design.

anyway... the usual scenario is just SV + Cash Bonus

What will be the best way to buy/top up insurance policy? Lets say I bought a policy at age 20.

At 30, obviously my insurance is "out dated" as medical and everything is up and up. Should I buy new insurance or top up?

At 40, obviously my insurance is "out dated" as medical and everything is up and up. Should I buy new insurance or top up?

At 50, obviously my insurance is "out dated" as medical and everything is up and up. Should I buy new insurance or top up?

Depends on your lifestyle at each of these phase and whether have your life improve since age 20? change of jobs, marital status, family, commitments etc

Based on all the above, the agent will recommend the suitable plan.

i don't think there's a hard and fast rule. you need to assess your 'liability' and determine how much insurance you should have. frankly, it's a neverending chase if you say you want to the best coverage. not to mention inflation is always there, hence you will be needing more coverage (especially so for medical)

Like someone said, the agent should plan/advise accordingly, but the problem being agent's commission is percentage dependent, so the more you buy, the more they earn.

It's very depending on the design of the plan, usually for endowment it is.
Total Sum assured: Basic sum assured + Additional Sum assured + Cash bonus + Basic Surrender value + Survival Benefit

That's the reason Total Sum assured are usually higher than your surrender value.

However, as @adele123 advise, this is just the usual scenario, you have to refer back to your policy book.

You have to top up according to your need at different life stages not age. For instance, if a person married, bought houses and have debt of RM1,000,000 at age 30, he needs the most coverage at that age. If he divorce(without children) and settled all debt at age 40, basically he doesn't need to increase the protection which he bought at age 30 or maybe he no need any protection at all.

However, this is not the usual case as most people will gain more and more responsibility over the age and adequate of protection to cover debt and your responsibility to your family.

So, how much protection we will need?
Figuring the number you should insured yourself requires a bit of thought. A rule of thumb suggest you get 5 to 10 times your annual salary. But if you want to be more precise about the number you should get yourself insured, think about how much money your family would need to cover the lack of your income.

Getting a life insurance isn't for everyone especially for one that have no dependent. If you have no parent, no sibling, no spouse and no children. What's the point of getting insurance right? However, most of the time, that's not the case as we will definitely have someone who we care when we are leaving the world.

Shall you are a married person, you need to know how much is your total debts as well as your mortgage so that your family doesn't have to worry about these obligations. If you have a spouse that doesn't work or are incompetent to find a job that could easily replace your position as breadwinner, you should take this into account seriously.

Furthermore, we need to take into account that how long does my partner will able to support the family without you as the source of income. You need to calculate the cost to raise your youngest son to age 18, a term or investment link would probably suits this situation.

Obviously there are other people in your life who are important to you and you may wonder if you should insure them. As a rule, you should only insure people whose death would mean a financial loss to you. The death of a child, while emotionally devastating, does not constitute a financial loss because children cost money to raise. The death of an income-earning spouse, however, does create a situation with both emotional and financial losses. This also goes for any business partners with which you have a financial relationship (for example, shared responsibility for mortgage payments on a co-owned property).

Summary (TLDR)
Life coverage = Total liabilities - asset + Family obligation(Parent/Wife/Child)
Critical Illness coverage = 5 times annual income + a medical card preferably half a million annual limit.

Usually top up is cheaper.
Also, if you have two medical policies, it can be more troublesome making claims.

I think you'll be quite surprised to find how many people that are exactly in that situation. Naturally, the main reason they won't be getting insurance is because it is an absolute torture to explain to agents how their state has come to be. Agents are so quick to assume everyone has a family. I also see those who grew up without one, will not feel the desire to start their own because they are very contented and fulfilled to live their lives either by themselves or among close friends. Think about it, if you're constantly by yourself as a kid, why would you suddenly feel the need to be surrounded by "loved ones" in old age? Though they may be alone, they are not lonely at all.

I am only putting out my 5 cents because I saw you saying that a couple of times now. I've spoken to those who are totally happy without any kind of a family at all and they can almost all agree that meeting insurance agents is an agony, simply because they can't quite find a way to explain their life choices.

You would be wrong to assume that if you have no dependent and just assume that since I have no obligation to anyone I need no insurance.

Insurance doesn't just cover death but disability, critics illness and personal accidents. Even if you are born alone in this world. Don't you think if you can't die and still need the pocket money to continue living if you don't happen to die ?

That's a very shallow view.

We just couldn't disagree that someone prefer to stay alone without family. Some will just said die then die lah, what to worry so much, better just spend the money myself then give to insurance company.

Pathetically, he may be short sighted and miserable and maybe selfish, as he never thought about future is still bright.
"No man can be an island"

Someone can ignore insurance and have 101 reason to reject insurance when he still single and young, but just hope it won't be too late for him to get insurance, especially heart diseases, cancer, kidney failure are so common these day.

Insurance just not a charity, they will just reject a illness person.

I never said I don't need insurance. I said this notion that everyone is by nature a social creature makes this process a bit more daunting for people who are by default without family.

Meeting agents who would automatically assume that EVERYONE on this planet wants to have a family (probably prompted by products that are designed to cater primarily to those with familial situations) is a hassle.

I have a fren who was traumatized after meeting two agents from two different companies. Both of them started their pre-accelerated Char Kar Chap grilling without even bothering to understand that he is someone who has a plan to live his life by himself.

For people like that, it is a huge challenge to meet insurance agents who are strangers because the explanation of the life situation part is always uncomfortable and awkward. Fending off suggestions that there will be a "future family" tucked away in some corner destined to come their way can get tiring at times.

This is exactly the sentiment that I was talking about. For those who would prefer to have no family at all, their lives are already bright and they are looking forward to living a fulfilling life with their own dreams by themselves. If you ask them, they would tell you that All Man Is an Island. They are having trouble finding the time to do all that they want to do. Planning for a family is the last thing they would do.

I am also telling you this because say if you meet a stranger/potential client that came an orphaned background, chances are they are very happy with their own goals and aspirations for the future. If you start advising them to actually start a family because that is your own yardstick of what fulfillment is, then don't be surprised if they are unresponsive during the sales meeting and you never hear from them again.

I think secretly they pity those are unhappily married.

Anyways, the only reason this is hitting a nerve with me is this assumption that everyone must have a family may have influenced the way insurance products are designed. That is why looking for the right product is more frustrating to some than others.


p/s: On the topic of selfishness, look up Ayn Rand. You'll see that selfishness is actually a good thing. I can assure you that almost all Randians or Objectivists are very happy and positive individuals living very meaningful lives. I've met plenty of them.

You're right to say that insurance is primarily catered for people with a family. And quite frankly it makes sense for the breadwinners to take care of the family members they leave behind.

But there is so much more than just protecting the family members, preparing some funds for them, etc.

For single people with their unique backgrounds and life experiences, the objectives can be different, or in some cases, VERY different. While a medical insurance, PA, and Critical Illness cover would make sense, a life insurance appears to be of no purpose. And for some, betul-betul no need for a life insurance.

Among my better clients is a single male heading for retirement. Chartered accountant.
Never married, no wife, just him. I had a good relationship with him selling, reviewing, and maintaining his insurance portfolio. We happen to play badminton at the same badminton court, and one day he approached me with a question on his mind, asked me if life insurance can do that for him.
The answer was yes, with some help from his input, yes.

Possible to get life insurance directly from insurance company without agent? I am working in general insurance company, but life insurance product is better in some protection.

Hi I am reviewing my medical plan and below are what I got:

Allianz - 79K Life, Medical 850K Annual Limit, No Life Limit. No CI waiver. Cost RM266.66 per month.
GEL - 12K Life, Basic Medical 90K Annual Limit, 900K Life Limit. Deductible Medical 90K, 900K Annual Limit, No Life Limit. With CI waiver. Cost RM210 per month.
Manulife - 10K Life, Basic Medical 150K Annual Limit, No Life Limit. Deductible Medical 150K, No Annual Limit (mean as long as within Life Limit), 850K Life Limit. No CI waiver. Cost RM216.66 per month.

Allianz looks good to me as it's a non-deductible plan with high annual limit and no life limit. And the premium doesn't really jerk up a lot with the benefits. But I always remember what u pay is what u get, I am afraid that I may overlook something or some drawback which I have yet to discover. Or could it be Allianz started with a much lower premium but increase drastically years later?

Can sifu sekalian help to provide some insights please?

In view with the plan, I believe you are in 40's

As many said, the premium amount are not guarantee to be fixed for life. For in depth comparison, you can check with the Cost of Insurance, the Term & Condition and Company profile and history.

Certainly we don't want a company which have claim issue, unable to sustain or no renewable guarantee, or worst if they have the right to withdraw the rider/medical plan.

Not possible to get life insurance directly from company

You have a very detailed comparison of your own, you already can make a decision yourself. Perhaps as you said, some companies are tend to have higher past record of increasing the cost of insurance and some don't, and the agent's attitude and professionalism should be in your consideration as well.

Not possible, insurance companies had been using agents all these while as the medium between the company & the clients.

Although some insurance company are trying some other ways to cut off the agents.

Saw it online there is Tokio Marine Life offering insurance directly though. Not sure if u all are aware of this