Hi EWill!

I'm an agent with Allianz. It is possible to get RM300 per month for 1.5 Million however the cash value is not going to look pretty and the chances of you doing a top premium in the next 20 years is high!

Really depends on what you are looking for.

1) High protection but potentially need a premium top up in the subsequent years or;

2) Lower protection but potentially no premium top up for the next 30 years

Perhaps you can check with your agent if it would be wiser to get a sum assured of RM1,000,000 for RM300 monthly.

Best,
Holocene

@lifebalance has done a very good job explaining what COI is.

To sum it up, here is a graph of what investment-linked insurance is and the purpose of the cash value in your policy

Difference between COI and premium will be deducted from your accumulated cash value.


Attached thumbnail(s)

Hi LostAndFound,

I would assume you already know why you are looking for life and medical insurance so these are 2 questions you need to ask yourself.

1) What are my monthly commitments
2) What is my budget

Scenario:

Mr. A
Age: 30 years old
Income: RM96,000 per annum
Monthly commitments: RM6,000

In the event that Mr. A is hit with a Critical Illness which takes him out of work for the next 24 months and has since not received any salary. RM6,000 x 24 months = RM144,000, then it would be for prudent for Mr. A to have a Critical Illness protection of RM200,000. Critical Illness protection also depends on the severity of the Critical Illness (ie: early, intermediate or late stage) as the percentage of claim for each Insurance Company is different.

That is an example of what you need to consider when deciding the amount of coverage for your Critical Illness protection.

As for life assured, the general guideline is 10 times of your annual income. Mr. A might need a life insurance of RM1,000,000. This is to ensure that should anything happen to Mr. A, his loved ones are able to maintain their current living standard at least for the next 10 years.

In the end, you really need to know what you need to cover in an unfortunate event and that if you currently have the budget to maintain your insurance policy. If you are able to share the information for the 2 question above with your agent, he/she should be able to assist.

Best,
Holocene

Wow lifebalance and JIUHWEI are quick to reply! We've got a lively community here!!

Glad you found my reply helpful LostAndFound!

1. You can definitely mainitain more than 1 policy however you need to understand how are they benefiting you. When we discuss about Medical insurance they can be split into 2, MEDICAL CARD and INCOME REPLACEMENT[SIZE=7] (Critical Illness protection).

For medical cards, if you have an annual limit > RM1,000,000 and No life time limit chances are you do not need 2 medical cards. Medical cards are there to absorb expenses relating to Hospitalisation & Surgical cost ie: Hospital Room & Board, Intensive Care Unit, Surgical Fees and etc AS CHARGED which is subjected to Reasonable & Customary Charges. What the hospital invoices, the Insurance Company pays.

For income replacements, you could have multiple policies. For example, Mr. A purchased a sum assured for Critical Illnesses of RM200,000 from Company A and Company B which gives Mr. A a sum assured of RM400,000, should any of the critical illness within the policies strike, Mr. A can claim from both Company.

I would like to reiterate what lifebalance has shared, if you bought both policy at the same time with no pre existing illness then it's fine. If you only have 1 policy and subsequently did a claim. Then you plan another policy to upgrade the old policy. It does not guarantee the new policy will cover what you've just gone for treatment depending on the underwriter discretion to approve your new policy application

2. You need to refer to your employee handbook or HR in regards to the terms and condition. In most cases, the sum assured is limited.

3. As mentioned by JIUHWEI, should you have the budget definitely go ahead as we are all exposed to life's risks however the family bread-winner should always be protected first.

I hope my explanation isn't too long winded XD

Well my reply got reported for due to soliciting charges. Hahaha newbie kena from some oldies here.

Anyways, depends on your age, sex, job and if you smoke it will determine the premium.

However if I am a 30 year old male accountant that does not smoke, I'll probably get a premium of RM1,600

Hopefully this info is helpful.

No soliciting intentions here.

The easy way to differentiate the difference is that, powerlink is what we allianz agents used for medical cards as the riders for Powerlink includes medical card, CI and various other riders whereas premierlink is a plan for life insurance.

It is possible to quote RM1200 for 500k however the reason would be the same as my reply to EWill.

Perhaps you can get a sales illustration for further details.

Best,
Holocene

Ah! Then you can go ahead if you do not mind topping up on the premium in the future. Given that you are a savvy investor, you could probably make enough returns in your other investment vehicles to cover the future premium increment!

Ask the guy to use premierlink instead!

Best,
Holocene

Yeap! In fact for someone who is 25 years old or so, rm1,200 for 500k is the benchmark. So to say XD

Best,
Holocene

Adding on on what lifebalance has mentioned, basically what It means is that should you experience a critical illness which is part of the waiting period, no coverage is provided.

Once the waiting period is over, coverage is as per policy terms.

Best,
Holocene

Hi zakiyunos,

How are you! Based on your question, it seems that your main concern is with the Premium. Perhaps you would like to share your budget and we can share with you what you can expect to get for that amount.

As to having a discount, as far as I am aware there are no discount for life products unless the agent himself/herself gives you a rebate, which is a big no no...

Best,
Holocene

Looks are definitely important but do you really want that to be the first criteria when it comes to choosing an insurance agent? My advise is get a feel of the insurance agent before choosing to buy from him/her. I have a new colleague who is a 7 times MDRT 3 times COT (these are titles awarded to agents that have a yearly sale of approximately RM478,000 and RM1,435,000) and she looks like a cute innocent aunty. But her servicing level is on a totally different scale, most agents would bring clients to makan, some would bring them to fancy restaurants. She brings her clients family to holidays.

Anyways, in my agency I'm labelled as a xiao xian rou, if you float that way 😂😂😂

1) Perhaps you'll want to think about the "happen before 65 yo" a scenario where Death/CI strikes after 65yo, what happens to my family and my financial well being then? I am going to assume that the CI covered are the 36 CI which covers intermediate to advance atage of CI given the large amount of coverage.

2) Without having the full details about your age, occupation, gender and etc we can really draw a conclusion from here but let's imagine you're 30, a male, accountant non smoker, a premium of RM6,000 for something similar would be sufficient.

3) Again, ends at 65 years old. Of course the prospect of eventually taking you money back at the end is tempting however you might want to consider if the coverage term is sufficient. Perhaps you would be better off, saving the additional 3k and invest in your other financial vehicles to generate better returns.

At the end of the day, go with the insurance agent you trust rather than purely based on the product. A large majority of insurance product in the market are more or less similar and largely depends on individual needs. An agents responsibility is to tailor make what the insurance company provides to each customer. If you feel comfortable with the plan you came across then I guess the next thing to do is pick up the phone and sign yourself on. Remember, CI generally have a waiting period.

Best,
Jiansheng/Holocene

Whether it is necessary to hold on to your ILP insurance depends on whether you require the coverage. If you don't need the insurance coverage provided by the ILP then you already know your answer. The portfolio value is only 60% as a majority of the premium for the first 6 years goes to commission and administration fees.

If you are asking if this ILP is going to make you money, chances are it might not as even the cash value generated are to be used to offset rising cost of insurance in the future.

There is a large misconception what ILP insurance is and how it should be managed. Partly due to agents misinforming clients and the clients' lack of education on ILP

Best,
Jiansheng/Holocene

Hey RoGuEWavVe,

You need to provide the following for an accurate quotation:

1) Date of birth
2) Sex
3) Occupation
4) Smoking/Non smoking

However, assuming that you are a 30 year old male accountant that does not smoke and would like to ensure the premium you pay would not increase for the next 30 years, you are looking at a premium of approximately RM3,600 per annum.

Best,
Holocene/Jiansheng

1) Yes but need to provide reason. Based on what you've said the agent might get warning on the Company but it depends also if you signed any document agreeing to what was done. Outcome is debateable.

2) It is possible. Request for increase in coverage.

3) Don't need to change credit card, and it is never encouraged to surrender a policy. But if it is due to misrepresentation or misselling by the agent you might be able to get a refund. Discuss with your agent.

I would also like to note the following. Investment Linked Plan (ILP) is not an investment vehicle for an individual to create wealth, in the traditional sense of wealth creation. Based on your information the "unit trust" that your agent helped you signed up is most likely a rider option to help you boost your cash value for your policy. Having a higher cash value is good as it means that it is likely that your premium, the money that you have to physically fork out remains the same for a longer time period as the incremental cost of insurance is offset by the cash value within the policy. Yes you read it right, the cost to insure you increases overtime. The downside is that you might be paying more in the present moment.

It might be a good note to perhaps check if you are currently under paying your premium for your medical insurance plan. If you are then perhaps the additional 150 per month wasn't a bad move after all. Sit down with your agent and explain what you really need. An insurance agent should be someone you can trust to put your interest before theirs, even if they are chasing for sales.

Best,
Jiansheng/Holocene

Hey RoGuEWaVe,

Are you still looking for life insurance only or would like to include medical and critical illness coverage also?

RM3,600 is based on your previous request for life insurance with a coverage starting from RM1,000,000

Best,
Jiansheng/Holocene

Have a look at the table that lifebalance has posted. Perhaps the best selling point is the flexibility and cash value. Insurance company nowadays also provide better features for investment linked.

Best,
Jiansheng/Holocene

I don't know, do we really need to discuss about this no commission news and how it would affect the agents? I believe when it really happens, it happens. Things change. I don't see where a discussion on this issue will bring about any usefulness. For those that are in the industry I'm sure they have their own contingency plans.

As I understand, this is only limited to specialist and it is optional. Not compulsory. Correct me if I'm wrong but please do not simply spread fear, again correct me if I'm wrong.

One of the benefits as I understand is that you get to choose your specialist and also upgrade the ward room to executive level. At times, these cost might even be more expensive compared to private hospital.

This is a great selling point however, perhaps as responsible and professional agent, we should gather the right facts and present it. Not spread half truths. That's not our job.