Hi,

I never thought about buying insurance. I don't think insurance is important. But I'm turning 35 next year. I've been thinking about a lot of things lately. Planning to buy insurance for me. I've been reading a lot about insurance for the past few weeks. Haven't decided yet.

So I'm seeking advice and input from agents and sifus here to help and guide me in making my decision.

My background:

34 years old
Male
Non-Smoker and Non-Drinker
IT Professional
Single

I'm not married and have no plans on getting married let alone to have children on my own. I do not provide financial support to my parents or siblings. In short, no one is relying on my income. That is why I think there is no point in me buying the life insurance. Well, I might be wrong here. I stand to be corrected.

I'm looking for medical and health insurance products focusing on protection. TPD + CI + Medical Card to be specific. As for the medical card, I'm leaning towards buying a standalone medical card.

Thanks.

Would terminating my current insurance plan (standalone medical card) makes it harder for me to engage with the same insurance company again in the future?

If I revise my existing ILP takaful plan, will my comissions reset back?

This the amount that goes to paying the agents, etc... that should be lower over time.

I'm looking for medical and health insurance products focusing on protection. TPD + CI + Medical Card to be specific. As for the medical card, I'm leaning towards buying a standalone medical card.

Thanks.

Would terminating my current insurance plan (standalone medical card) makes it harder for me to engage with the same insurance company again in the future?

Would terminating my current insurance plan (standalone medical card) makes it harder for me to engage with the same insurance company again in the future?

Before you terminate your medical card you have to take consideration of the below:
1. Have u undergo any major surgeries before? Because when you want to reaply any pre-existing illness will not be covered and will be in the exclusion list.
2. If you surrender now the charges of premium will be higher than before you first purchase it.

IMO you should try to apply for a medical card which gives you cash value in return even if the premium is rm100+ more expensive than your current one. In term of 20 years, you will get nothing back from your standalone medical card and i believe the coverage has annual/lifetime limit. Where else with new ILP medical card you have higher limit with no annual limit and you can get back at least 40% of total premium back you paid after more than 10 years in the cash value.

If I revise my existing ILP takaful plan, will my comissions reset back?

This the amount that goes to paying the agents, etc... that should be lower over time.

interesting ....
for an approximates similar coverage.....what is the yearly premium differential between the standalone and the 'new ILP medical card"?

Would terminating my current insurance plan (standalone medical card) makes it harder for me to engage with the same insurance company again in the future?

Before you terminate your medical card you have to take consideration of the below:
1. Have u undergo any major surgeries before? Because when you want to reaply any pre-existing illness will not be covered and will be in the exclusion list.
2. If you surrender now the charges of premium will be higher than before you first purchase it.

IMO you should try to apply for a medical card which gives you cash value in return even if the premium is rm100+ more expensive than your current one. In term of 20 years, you will get nothing back from your standalone medical card and i believe the coverage has annual/lifetime limit. Where else with new ILP medical card you have higher limit with no annual limit and you can get back at least 40% of total premium back you paid after more than 10 years in the cash value.

interesting ....
for an approximates similar coverage.....what is the yearly premium differential between the standalone and the 'new ILP medical card"?

This statement is misleading, quite obvious that he's using a standalone medical card at the moment which the premium charged is based on his age, occupation, gender and whether he's a smoker or not.

If he surrender now and purchase another next 10 years of the same standalone plan. The premium will be higher than before he first purchased it. Misleading ? Even if he surrender now the premium will be still be higher if he plan to repurchase it after 2 months because its already a few years logically thinking. The premium quoted was according to the age when he FIRST bought it

The Insurance premium charged for a Standalone Medical Card will not be HIGHER than before just because he bought it long time ago and he decided to cancel it and buy it again later. But it will only be charged higher if he had grown older, doing a riskier occupation or became a smoker from a non-smoker.
Again this can be misleading to mention Standalone medical card are inferior to ILP medical card. In fact both of them offers similar benefit besides a higher room and board and option to add on other riders within an ILP policy.

Do you know what exactly you are saying ? So means the premium will be CHEAPER after next 10 years if he plan to buy it ? Read again your own statement.If he buy it another 10 years later, his age will not increase?

Besides that, the extra amount put into an investment policy is being invested by the insurance company where as a Standalone medical card is akin to a car insurance if you don't make any claim for the year, there is no other extra compensation / cash back to the insured upon renewal. But customers don't have to purposely pay few thousand extra over the next 10 years in order to get that cash value if a person is on a tight budget but needs basic medical coverage.

The sole purpose of getting an insurance is not to make money out of it but to give customers the peace of mind that they're covered by insurance at the point of time. So I don't get why you would even suggest to get back "cash value" from the policy especially if it's an ILP involving Medical Card. So what happens to that client of yours once he fully cash out the 40% cash value 20 years later without the medical card. Are you going to sell him an even more expensive policy since he may already be in his retirement or 60s ' which he may not even be able to afford anymore?

People buy insurance is to get protection and investment at the same time to cover the COI and also get some cash value in it.The cash value is to get some investment value depending of the fund performance. The Cash value is also to sustain the policy years when he in later years cannot afford to pay the premium when he retired at age 60. When you are healthy up to age 70. You can consider which company fund performance giving u best cash value. Given 2 companies A and P

Company A
After 70years plan cash value is 100k

Company P
After 70 years plan cash value is 150k

As a policy holder which one will you choose ?

What if they already have pre-existing illness at that point of time or their health status may not grant them another new medical card and they've already cancelled the medical card to get back their 40% cash value as you suggested ?
IMO it depends on your age, gender, occupation and smoker or not.

Standalone medical card are easily affordable nowadays within 100/mth. Whereas ILP starts from 150/mth

This statement is misleading, quite obvious that he's using a standalone medical card at the moment which the premium charged is based on his age, occupation, gender and whether he's a smoker or not.

If he surrrender now and purchase another next 10 years of the same standalone plan. The premium will be higher than before he first purchased it. Misleading ?

The Insurance premium charged for a Standalone Medical Card will not be HIGHER than before just because he bought it long time ago and he decided to cancel it and buy it again later. But it will only be charged higher if he had grown older, doing a riskier occupation or became a smoker from a non-smoker.
Again this can be misleading to mention Standalone medical card are inferior to ILP medical card. In fact both of them offers similar benefit besides a higher room and board and option to add on other riders within an ILP policy.

Do you know what exactly you are saying ? So means the premium will be CHEAPER after next 10 years if he plan to buy it ? Read again your own statement

Besides that, the extra amount put into an investment policy is being invested by the insurance company where as a Standalone medical card is akin to a car insurance if you don't make any claim for the year, there is no other extra compensation / cash back to the insured upon renewal. But customers don't have to purposely pay few thousand extra over the next 10 years in order to get that cash value if a person is on a tight budget but needs basic medical coverage.

The sole purpose of getting an insurance is not to make money out of it but to give customers the peace of mind that they're covered by insurance at the point of time. So I don't get why you would even suggest to get back "cash value" from the policy especially if it's an ILP involving Medical Card. So what happens to that client of yours once he fully cash out the 40% cash value 20 years later without the medical card. Are you going to sell him an even more expensive policy since he may already be in his retirement or 60s ' which he may not even be able to afford anymore?

People buy insurance is to get protection and investment at the same time to cover the COI and also get some cash value in it. When you are healthy up to age 70. You can consider which company fund performance giving u best cash value. Given 2 companies A and P

Company A
After 80years plan cash value is 100k

Company P
After 80 years plan cash value is 150k

As a policy holder which one will you choose ?

What if they already have pre-existing illness at that point of time or their health status may not grant them another new medical card and they've already cancelled the medical card to get back their 40% cash value as you suggested ?
IMO it depends on your age, gender, occupation and smoker or not.

Standalone medical card are easily affordable nowadays within 100/mth. Whereas ILP starts from 150/mth

2. If you surrender now the charges of premium will be higher than before you first purchase it.

If he surrrender now and purchase another next 10 years of the same standalone plan. The premium will be higher than before he first purchased it. Misleading ?

People buy insurance is to get protection and investment at the same time to cover the COI and also get some cash value in it. When you are healthy up to age 70. You can consider which company fund performance giving u best cash value. Given 2 companies A and P

Company A
After 80years plan cash value is 100k

Company P
After 80 years plan cash value is 150k

As a policy holder which one will you choose ?

If he surrender now and purchase another next 10 years of the same standalone plan. The premium will be higher than before he first purchased it. Misleading ? Even if he surrender now the premium will be still be higher if he plan to repurchase it after 2 months because its already a few years logically thinking. The premium quoted was according to the age when he FIRST bought it

What I'm trying to point out to you when you said "Premium will be higher than you first purchase" - It sounded like the premium that the client paid is based on the age he first bought the policy and thereafter if he cancel now, he will not enjoy the lower premium charged and your 2nd statement now which further explains what you meant earlier.

Anyways I've highlighted on the area of the premium charged to further clarify how much the Cost of Insurance (COI) will increases as a client ages.
Sorry to say, if insurance is for investment, a lot of people may disagree on this especially pure investment tools out there would do much more fantastic return compared to an insurance product if you're talking from Investment perspective.

You are still trying to dodge the question, what happens to your customer after they cash out the full amount from the ILP policy @ age 70 and a few months later needs to undergo a surgery that cost RM300,000?

This is not a matter of which insurance company gives a higher return if you're trying to switch topic nor did I ask about anything related to cash value return.

And you're correct on that part that part of the purpose of insurance company accumulate the cash value is to pay the Cost of Insurance (COI). Cashing out all the money will immediately lapse the policy and client will no longer be able to enjoy the insurance benefits.
It seems you've edited further to add on

I think you're confused urself, 2 months ? then "it's already a few years" ?

Hi,

I never thought about buying insurance. I don't think insurance is important. But I'm turning 35 next year. I've been thinking about a lot of things lately. Planning to buy insurance for me. I've been reading a lot about insurance for the past few weeks. Haven't decided yet.

So I'm seeking advice and input from agents and sifus here to help and guide me in making my decision.

My background:

34 years old
Male
Non-Smoker and Non-Drinker
IT Professional
Single

I'm not married and have no plans on getting married let alone to have children on my own. I do not provide financial support to my parents or siblings. In short, no one is relying on my income. That is why I think there is no point in me buying the life insurance. Well, I might be wrong here. I stand to be corrected.

I'm looking for medical and health insurance products focusing on protection. TPD + CI + Medical Card to be specific. As for the medical card, I'm leaning towards buying a standalone medical card.

Thanks.

Looks good for the premium. Lets do a case study.
Plan 1 age 30 - 60
739.88 x 6 = 4439.28
903.12 x 4 = 3612.48
961.42 x 1 = 961.42
1038.27 x 5 = 5191.35
1483.47 x 5 = 7417.35
1801.47 x 4 = 3205.88
2394.54 x 4 = 9578.16

Total Premium
34,405.92

plan 1 Annual Limit/Lifetime - 100k

What if your bill is 400k for big C ? Do you think as a wealth planner yourself 100k can sustain for 30 years?

Save now and fork out RM300k later ? This is one thing we as wealth planner must not advise people to buy standalone  medical card not because they have no interest in investment but to have protection what will happen in future. I do not advise my client to go for term insurance and standalone medical card. In the long run the cons is at greater risk. You secure your health now but not future.

You did mentioned about

100k annual and lifetime limit. Do you think is enough ? BTW our discussion is about standalone medical card why have other riders to add on ? Is it still considered as standalone by the word itself? Can you please explain more details? why standalone have riders? Is the premium guaranteed wont increased every year  or every 5 years ?

I do not advise my client to go for term insurance and standalone medical card.

In the long run the cons is at greater risk. You secure your health now but not future.

100k annual and lifetime limit. Do you think is enough ? BTW our discussion is about standalone medical card why have other riders to add on ? Is it still considered as standalone by the word itself? Can you please explain more details? why standalone have riders? Is the premium guaranteed wont increased every year  or every 5 years ?

Is the premium guaranteed wont increased every year  or every 5 years ?

what happens to your customer after they cash out the full amount from the ILP policy @ age 70 as per your advise to enjoy the 40% cash value or what u said 100k - 150k cash value and a few months later needs to undergo a surgery that cost RM300,000?

Why there is a 100k limit when it said its NO- Lifetime limit? can you please clarify on this?

You forgot the big brother of the medical plan rider that enhances it to RM1,100,000 annually for just fraction of the cost, try add that up for me and tell me again.

https://www.aia.com.my/content/dam/my/en/do..._MedBooster.pdf
You just highlighted yourself as just another life insurance agent who just goes after big commission by selling big policies and not understanding each of your client's need.

Do you mean selling more Life / Critical Illness protection means not understanding the client`s need? If the family breadwinner passed away. How is the wife going to sustain their lifestyle?  Are you the agent feel happy for not selling them ILP insurance and afford to see his family and children suffer because of your "good" advice?

Honestly Term insurance and Standalone Medical Card still exist in this industry for a purpose, which is to meet the people's need, you can't be a proper wealth planner if you only sell certain products even if you claim to "Understand" your client telling you that his budget maybe limited but you refuse to tell them that there is actually another affordable plan.
There will be no future for your client at all if you can't secure his health now to pay your future premium when he can't afford to pay you the premium that you advise him because you stubbornly do not recommend any standalone policy at all which is within his budget. Not everyone can afford to pay insurance premium nowadays.
Are you even serious about asking this.

what if your client suddenly need to undergo an operation cost about rm 200k and your plan only cover 100k Annually. How would you advise on that ? I would like to know if they cant afford rm 200 a month , what if they would need rm200k instantly for an operation and the plan only covers 100k where will they fork out another 100k to sum up the hospital bills ?

Why not let me ask you this. What is a Standalone Medical Card to you?

standalone medical card is a non participating  term medical card which will you only pay the the  actual cost to insure you at your age without other riders with a capped limit.

Why Standalone have a rider? because AIA's standalone plan allow to add on the rider, is there even a problem on that in the first?

So basically u said standalone is to reduce the premium due to not all client can afford the high premium? Why care to add on Rider or Booster ? How much will the premium sum up to? RM 200 and above? If standalone plan why force client to pay more for rider when there will be no investment value in it ? Misleading into paying more for nothing ? Beside is there any LIFE/critical illness on your standalone medical card ??

No problem on that because if there is rider it means more money will be wasted since no investment. No cash value.Not good for the client

Hello, Captain Obvious, As a insurance agent urself, should knows that Premium for standalone policies are not guaranteed the same every year by any insurance company unless stated otherwise, if your company does offer, do let me know, I'm willing to buy from you.

[Get A quotation from me  you can get a quotation from this website
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I'm still waiting for your answer

what happens to your customer after they cash out the full amount from the ILP policy @ age 70 as per your advise to enjoy the 40% cash value or what u said 100k - 150k cash value and a few months later needs to undergo a surgery that cost RM300,000?