Version 3.00: 29Dec2015

Earlier thread will be closed by admin since it exceeds 2,500 posts.

Kindly reply to this thread if you have doubts in insurance. Thanks!


This post has been edited by roystevenung: Dec 29 2015, 01:35 PM

good one

and the journey continues...
v2 ref : https://forum.lowyat.net/topic/3050583/+2440

keep up the Good work TS roystevenung, our lyn Insurance Sifu

congratz on V3

Good work back there! Let's welcome people to V3.

That's quite fast moving into v3

This threat is running fast. Already V3.

Thanks Roy

To make sure you know how does insurance works, take a look at the youtube video below.


Insurance is actually a risk sharing medium among the a group of healthy people with the sick one because the group of healthy people knows that someday someone will help them when they need it.

So now let's talk about Life insurance vs medical insurance
Life insurance is the lump sum of payment given out when one diagnose with certain pre-defined covered event such as Death/Total&Permanent Disability and 36 Critical Illness.
Medical insurance is the coverage by the insurance company to pay for the medical bill from the hospital.

So why does one need both Medical and Life insurance?
Imagine that Mr.Lee poo poo got blood and went to hospital for checkup, he is diagnosed with bowel cancer stage 3 after the checkup. The medical bill cost up to RM70,000 for the surgery. This is not the whole amount yet, because for every chemotherapy in the future, the bill is claimable under his medical card too.

The story hasn't ended yet, since he is hospitalized for about 10 days, the doctor has certified that he is not fit to work for the next 6 months. The next thing he knows is his boss asked him to have a "good long rest". So, he loss his income generate power, and here comes the pay cheque from the insurance company to help him sustain his living expenses, car loan, property loan, others health product, Ogawa massage chair, practice Taichi or travel. Here comes the importance of Life insurance, especially Critical Illness coverage.

Medical card is to cover the medical expenses when one hospitalize in hospital whereas life insurance especially Critical Illness coverage is a lump sum compensation where you can use it to cover the lost of income during the period.

Besides this, you can use up to Life/KWSP RM6000 and Medical/Education RM3000 tax relief to lessen your burden when paying for Income Tax, it's a win-win situation for both policyholder and the company.

In general, you need to take both medical and life insurance in a moderate level on your twenties and there is no best company, there is only a company that suits you the most. Rule of thumb for a single youngster at age of 20', about 10% of your monthly income to insurance is sufficient to provide you all the basic protection.

Bro roystevenung, I am a 31 years old non smoker male

was asking agent to quote me stand alone life insurance for 100K & 200K

they quote me from RM130 & RM260

but "u for life" online quoting as below



how come so much different

Check the fine print on uforlife.

From what I can see from the online site the insurance payment is until 75 years old. Insurer would be Tokyo Marine.

100k would be doable for RM183 or RM15.92

No agent commission and the administrative fees are reduced

difference by 7 folds? just because of the fees?

what do you mean by "doable for RM183 or RM15.92"

agent told me they have various types

investment link, par plan, non par plan, endowment plan, term plan & single premium plan

am looking for the cheapest one just to cover my funeral expenses if anything happen

no dependent, the only debts i have is house loan which i already bought MRTA

Ic, if you just want it as a funeral expense then just get this policy will do. However if you're lying in hospital due to critical illness and can't die yet. You will not be eligible to get any claim unless you add on a critical illness rider.

I can't say AIA can offer you the cheapest and even as uforlife website had mentioned that rates that you see now in their proposal might be changed in the future. Of course by notifying in advance. This applies to all insurance company unless you can get a black and white staring the rates proposed will be fixed throughout the lifetime.

Just get what you need instead of fighting for the cheapest rate only.

uforlife premium is increasing over the age, whereas term/investment link/whole life policy premium are fixed.

If you want to do a head-to-head comparison, you have to add up all the uforlife premium and get the average of it.

Investment link premium may be looked fixed, but it is not guaranteed forever, as it depends on cash bonus or investment return from the investment portion to compensate.

If the investment is making a loss, insurance company may send "love" letter stated, not enough cash/investment portion to compensate the coverage premium, so need to top up...

This post has been edited by cherroy: Dec 30 2015, 01:45 PM

Perhaps taking the Cost of Insurance vs the uforlife premium will be a better comparison.

Thanks roystevenung. So only if it exceeds annual limit then only it makes sense to claim from both.

Any insurance company provide online account for insurance policy buyer to keep track their money paid record?

I know GE got the online account to keep track of all your insurance policies, annual statement and
transaction.

https://econnect-my.greateasternlife.com/eConnect2/


Alllianz also has.

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?

I don't know about others, usually I use ILP to fix the premiums, especially with medical/health insurance.

As for CI and Life insurance, you can go with a separate policy or include it into your ILP as well or buy separately on its own.
Best to meet up with your agent or contact any of us on your own and bring your former agent (your friend) along because he/she would best know about your existing policy, and how to complement it in your best interest.

This is not "fixed", just bundled together so that it looks fixed.

If the investment part cannot generate enough to cover the cost of medical premium, policy holder still need to top up latter.

ILP premium is looked "fixed" due to bundled with investment of UT.

eg.
Standalone medical pa premium at age 30
Rm900, increasing every year due to age and cost of medical.

ILP package the medical together with UT investment with a projected fixed premium for 20 years
RM2000.
RM900 goes to pay the medical, Rm1100 goes to investment UT.

So the ILP can be fixed throughout many years at RM2000, as even the medical premium rise, it just allocated less into investment. Say next year RM1000 goes to medical, the rest RM1000 goes to investment. Another few year down the road.
RM1500 goes to medical and RM500 goes to investment.

While when the medical premium/cost goes beyond Rm2000, let say RM2500, insurance company still can allow the premium to be the same, as it can draw down the investment part of fund (be it accumulated capital or return) Rm500 to compensate, until one day, the investment part portion not enough to compensate, then insurance company may require one to top up.

You cannot cover medical until 90 with a fixed premium, as insurance company need to assess the medical cost rising from time to time, as well as policy holder risk due to age.

Insurance exist is not for charity, they need to assess the risk of policy holder as well as claims or medical rising cost they may need to pay which in return deciding the insurance premium.

You may opt for traditional policy, the policy will not lapse with fixed premium, but your premium paid will be 2x - 4x more.

Of course. If cost in the main factor, then you have no choice but to opt for ILP plan which are lower in premium as compared to traditional plans.

Hi All,

Need some advise.
Recently quoted with an Investment Linked Plan with all these products.
Is it necessary for me to purchase all riders?
Don't really understand what's all the riders for.
I do have an AIA medical card from my company.

AIA
A-Lifelink

Riders
-Disability Care
-CriticalCre
-WaiverExtra
-Med
-MedBooster
-Total AccidentShield
-RCC
-HospitalIncome Extra

Agent earned good commission from your premium, it should be the agent job and responsibility to explain it one by one with details.

As a rule of thumb,
Don't understand, don't commit until fully understand what it is about.

There is some criteria you need to assess in terms of your current living lifestyle, single or married, commitments and many more. Then what sort of basic coverage you have currently. Then work from that way upwards.

E.g cover basic necessity (medical card)
cover commitments (debts/liabilities)
cover cost of living

This post has been edited by lifebalance: Jan 4 2016, 06:23 PM

I hear what you're saying. But I pray that you can also hear what I am saying.

ILP package is meant to be sustainable till the insured attaining age 100. Not 20 policy years.
Shorter period means lower premiums to pay. Don't forget if you want cheap, cheap is what you'll get = shorter sustainability.
I apologize in advance because now you're sounding like a person who wants Grade A for the price of Grade C.
At best you'll get a nicer looking Grade C if you're paying at a Grade C price.
_____________________________________________________

I urge you to look into the cost of insurance between an ILP medical rider and a standalone policy.
The difference over the years is, i pray, a big enough a sum to be significant to you.

Secondly, I also would like for you to take a look into the fund performance of these insurance companies under their ILP. I can't guarantee the future performance, but tell me if these funds are so bad that they are bound to be doomed?

Thirdly, I would also ask if you invest into anything at all? UT? Property? Shares, derivatives, futures?
If you don't, then your arguments against ILP makes sense.
If you do, then for the benefit of all the forumers here, please share your portfolio (in ratio, picks, etc) without revealing your amount of monies with us? You seem to be getting guaranteed returns!

Ever encounter primary school students blaming the education system for their bad grades?
Come on, we're better than that here.

ILP "fixed premium" will be higher than standalone premium, eg.
if standalone medical premium is RM900, ILP could come out with RM1500 or even more.

As ILP needs some money to channel to investment part.

Yup, cost of medical coverage is lower than standalone one (as insurance company can make some money through investment portion, hence can provide cheaper cost of medical coverage).
There is no free lunch.

Pay grade A premium will get grade A coverage.
Nobody expected pay grade C premium to have grade A coverage, everyone know insurance company is not charity organisation.

The agent should be the one explain all what is ILP about, and not directing some one doesn't know well about insurance, by saying if one wants to have fixed premium for medical coverage, ILP is the one provide fixed premium for it.

This is not a right message to someone totally doesn't know about insurance. He/she may totally misunderstand it.

One day, if the investment portion performs so bad, and policy holder need to top up the discrepancy due to insufficient fund from the investment portion to compensate the cost of insurance, then how?
Blame the agent never said or can claim from agent?

Whatever posted, is just want to channel a correct understanding about ILP.

If something is unknown aka investment return of ILP portion is not guaranteed then just explain it to clients, what is about.

While if the ILP fixed premium is not guaranteed to be fixed forever, and it only can be fixed if the investment return hit the projection, then just tell so.

It is as simple as that.

Why drag so many issues until need to show portfolio etc, and seems like so scare that people knowing the fixed premium is not guaranteed to be fixed forever?
It only fixed if everything fall into the projection or better than the projection.

ILP is a simple bundled or combo product. It is not a magical tool. It has its own strength, but has its own drawback as well.
I know ILP has good commission, but it is still agent responsibility to do the explanation about its mechanism especially for newbie in insurance, instead of just a simple statement ILP has fixed premium, you don't worry about raising premium like in standalone policy.

Aya!.... I was just informed it's not ong to talk about insurance right before chinese new year's.

I think I'll revisit this again some time in mid-feb. Thanks for chiming in people! 8-D

ILP premium is not fixed.

It is also being mentioned in the Sales Illustration that the insurer reserves the right to revise the fees and charges by giving a 90 days notice period.

The insurer will increase the fees and charges (which will directly affect the premium paying) if the claims gets out of hand and that is the only way to maintain that portfolio apart from increasing the pool by getting more sales.

This is on top of the insurance charges which will increase by as you grow older.

This is a professional and responsible advice come from a honest agent.

This statement is a crucial and important advice especially for newbie in insurance.

ILP "fixed premium" will be higher than standalone premium, eg.
if standalone medical premium is RM900, ILP could come out with RM1500 or even more.
As ILP needs some money to channel to investment part.
Yes, the premium is higher now. However, over the long term when accumulated, it is in actual fact, cheaper.

Yup, cost of medical coverage is lower than standalone one (as insurance company can make some money through investment portion, hence can provide cheaper cost of medical coverage).
There is no free lunch.
I would like to enlighten you about the few available insurance schemes.
1. Traditional Life Insurance - Not transparent, not flexible, very rigid.
2. Universal Life Insurance - Not transparent, fairly flexible with some options, still pretty rigid.
3. Investment-Linked Life Insurance - Complete transparency, very flexible, very accessible.

The money made from ILP investment portion goes directly to the customer's account value, which the customer can withdraw at any time for any purpose. After withdrawing, of course it affects the sustainability of the policy.
On the flip side, customers can also put more into the account to buy units for reasons such as insufficient value in the account to pay for the cost of insurance, which have to be paid anyway to sustain the policy. Or the customer can instruct the policy to not use the money from ad-hoc top-up to pay for the insurance costs.

Pay grade A premium will get grade A coverage.
Nobody expected pay grade C premium to have grade A coverage, everyone know insurance company is not charity organisation.
Welcome to the real world. I'm sure by now you've come to terms that an insurance policy does not equal to a social safety net.

The agent should be the one explain all what is ILP about, and not directing some one doesn't know well about insurance, by saying if one wants to have fixed premium for medical coverage, ILP is the one provide fixed premium for it.
And I completely agree that the agent should explain what ILP is all about, and the customer shouldn't buy unless they know well about the features and benefits. But my friend, can ILP give you a fixed premium for your medical coverage? You have to pay a bit more, but you will also get exactly what you want, which is a fixed amount of premium to commit so it is predictable, allowing for more definite plans with their money.

This is not a right message to someone totally doesn't know about insurance. He/she may totally misunderstand it.
Would it be better for me to match their budget now, and have them pay more as they age?
Why would anyone do that when a lower rate with better features is available right from the get go?
Would you do that?

One day, if the investment portion performs so bad, and policy holder need to top up the discrepancy due to insufficient fund from the investment portion to compensate the cost of insurance, then how?
Blame the agent never said or can claim from agent?
Should that ever happen, there are features in ILP to guarantee your coverage for at least 5 years on the condition that you have never missed a premium payment, or withdrawn from your policy account value.
You can blame the agent and IMO the agent should also bear the cost to top-up if the customer bought at the premium as recommended by the agent.

Whatever posted, is just want to channel a correct understanding about ILP.
Thank you for your kind initiative! All of us in the industry is forever indebted to you.

If something is unknown aka investment return of ILP portion is not guaranteed then just explain it to clients, what is about.
The industry has been doing that. And we go above and beyond just sharing about a product and show you exactly what ILP can do for you. It may or may not suit your management style, but it is the most transparent and the most flexible option in the market.

While if the ILP fixed premium is not guaranteed to be fixed forever, and it only can be fixed if the investment return hit the projection, then just tell so.
Fortunately it is not sold online isn't it? Don't you think it is such a blessing that you can have an agent for you to really grind and squeeze every bit of information in person?

It is as simple as that.

Why drag so many issues until need to show portfolio etc, and seems like so scare that people knowing the fixed premium is not guaranteed to be fixed forever?
It only fixed if everything fall into the projection or better than the projection.
Well, to be frank you do appear to be giving the impression that non-guaranteed investment return was a foreign idea to you. Hence I became very interested in your portfolio.
The ILP plan and its mechanisms has been explained by many here in V2.
And here you are harping on "what if it fails? It's not guaranteed to be fixed forever! etc..."
Since you mentioned, i'll lay it down "when it fails":
1. If you have never missed a premium payment and never withdrawn from your account value, you will have 5 years of guaranteed coverage. After 5 years, you will have to pay the difference.
2. The cost of insurance for your medical rider will be lower than if you were to buy a standalone medical plan.
3. The accumulated total that you would have paid for your medical rider will be lower than if you bought a standalone medical plan.

Come on, we're way better than just "cheap" here in this forum. Unless "cheap" is what we are to you.

ILP is a simple bundled or combo product. It is not a magical tool. It has its own strength, but has its own drawback as well.
I know ILP has good commission, but it is still agent responsibility to do the explanation about its mechanism especially for newbie in insurance, instead of just a simple statement ILP has fixed premium, you don't worry about raising premium like in standalone policy.
Why would you think we are so eager to meet in person? What exactly do you think agents do in a presentation appointment? Before the agent says "sign here", we would have met at least once, I would know about your work, your spouse, your kids, your plans for the future, your worries and concerns along the way, and you would know all that about me as well. Trust me, I want to know who I am acquiring as a customer, and you would most definitely want to know your agent too. Want to know if your agent is a good agent with good advice? Just observe the people that he hangs out with because they are likely his customers. If they are doing well, he contributed to that in a greater or lesser way.
Every agent prefer 35% sales commission over 20%.
Traditional life insurance gives us 35%.
ILP gives us 20%.
But lots of agents sell ILP because many times it is just a better arrangement and it keeps a lot of options open and available for the customers too.

Looking for standalone medical card for a female aged 54, currently have a few quotes from GE, AXA, AIA. Also have from @Roysteven.. Anyone has any suggestions/quotations?

Looking at room and board of ard 200-250RM.

If a person got CI can buy PA or not?

PA coverage scope is different with CI.

So if i bought a PA now and died of CI i will not be compensated rite? But if i was in accident I can claim?

Yes, if the death is not due to accident, PA won't compensate.

As the name implied, Personal Accident insurance.

The scope of coverage is only accident related.
Sickness, natural death is not covered.

Can, you can buy PA even if you have CI currently.

You can also get cancer coverage with AIA should you have any CI non related to cancer.

PA is important aside from normal life insurance as it covers the person for accidental death.

This post has been edited by lifebalance: Jan 5 2016, 05:28 PM

Bro, sorry if offending for reality. We can take our time to compare what ever we like. But as of age 54, the chance of insurance company approve without loading and exclusion is quite low.

100% insurance company will require any applicant who above 50's to have medical check up and the medical report rarely will be perfect as those 20-30's health status. (If you know any insurance not require medical check up for 50s, I will be interested to know)

As many said, Insurance company are not a charity, even a minor health issue such as high cholesterol for a 50's, they will rather reject the applicant then taking the risk to accept. This might more stringent in standalone than ILP due to ILP is a life insurance.

When we have money, we can shop and buy anything we want. But this doesn't happen in health insurance, as they only accept those who still strong and healthy.

It is important to know that, get a medical plan when we are still young and healthy. Not when we are getting old and sick.

This post has been edited by conqu3ror: Jan 5 2016, 05:44 PM

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

That one only term life... the uforlife advert on lowyat lo.

can... if you are staff of the life insurance company lo...

or if you are family of the staff.

or the uforlife lo... considered direct la.

Wait for LIFE framework. But don't know whether it will ever be implemented

This is under BNM. Sure will be implemented. If under the goverment ministry I have my doubts too.

Uforlife correct ?

We know

i think the nearest will be uforlife because they are actively promoting it, also i have check on their price and is considered affordable... so for those who is looking for affordable simple package can go look for them...

what is the best motor insurance (based on own experience or feedback heard)? got another source which mentioned:

Good
1. Berjaya Sompo
2. Allianz
3. AIG
4. MSIG
5. Tokio Marine
6. Etiqa
7. AXA

Bad
1. Kurnia / AM Insurance
2. Ace Jerneh


RHB?
MAA?

This post has been edited by spreeeee: Jan 8 2016, 03:48 PM

Rate wise, frankly everybody also still in a "look-see" mode.

Claims wise, also pretty straight forward, have to submit required documents.

But roadside assistance, by far Allianz and AIG service providers are
As for towing service, Allianz towing distance by far is the furthest.

These two are the ones with the better feedback from my customers and I personally purchase Allianz.

normally, 24 Hours Road Assistance Service, if let's say battery flat or out of petrol middle of somewhere, any charges (except battery replacement)?