Depends.

You can check out what Socso covers here: https://www.perkeso.gov.my/en/social-securi...nce-scheme.html

And decide if you need another PA yourself base in your situation.

Best,
Jiansheng

Personal Accident insurance is quite different from life/medical. After all, we're all guaranteed to leave this world someday, and it's a safe guess that we'll need some medical help somewhere in our lives. Whether we get into an accident or not is another issue, so it's a bit of a gamble/luck of sorts. PA isn't too expensive though, so it can be worth considering, depending on your situation.

Hope this helps.

Cheers,
Matt

What do you want to cover exactly instead of just saying I want to buy a personal accident without any purpose of protecting something?

My spouse and I are contemplating on whether or not we should purchase medical insurance for our 2.5 year old at this point in time.

Currently, our child is covered by our employer's insurance as part of our staff benefit. So, in any case there is a need for hospitalization, it will be fully covered. For spouse's employer, there is an annual limit, for my employer, there is no limit.

My spouse and I have different views on the objective of getting medical insurance

i) My view
- In case something happens to either myself / my spouse or both of us, the appointed guardian for our child will not have to worry about the medical expenses if the need arises as a medical insurance is already in place.

2) Spouse's concern
- To lock down the premium price while he is still young and healthy. This is with the belief that the premium will increase with age.

- As a form of investment for the child's future

Questions
1) Should we purchase now or wait until our child is >5 years old as was informed that the premium for children below 5 is higher due to the higher risk?

2) Our child is only 2.5 years old now. If lockdown now, probably 10-20 years down the road, the situation is going to be very different and what are the chances that the existing plan would be able to meet the needs in the future?

Figuring out how to strike a balance for our expenses mainly because of limited budget and don't want to over-insure (as currently fully covered by employer so won't be using personal insurance as long as we're alive and working)

To answer your question
1. Baby risk are the highest while age 0 - 5, which is why the premium is higher around this age, it's also important that you get a medical plan for them early because otherwise if they do succumb to life long disease, this will definitely burn a long term hole in your pocket while they might be unable to apply for a medical card or to be excluded on the pre-existing illness.

Although company insurance do cover for it but like you said, who is going to take care of them if you're no longer around (thus there is no employment insurance benefit to your children) and also who is going to continue to pay for the insurance premium ? the guardian ?

2. Policy can be reviewed from time to time, the value of money today will be different in 20 years time. Definitely it will need to be upgraded later on.

You can always get a life planner to sit down with you and discuss on how to strike a balance.

1) You may include a single or double parent payor and appoint a (third person) contingent assured to the child's policy. Touch wood, should the scenario where both parent's are not around, the policy premium payment will be waived and the contingent assured will be able to take over the policy until the child is 25 yo of age.

Once the child has attained 25, he/she will be able to take full control of the policy and decides if he/she wants to further continue or even upgrade the plan.

2) Yes, insurance is only available when we are healthy. One of the problems to get child policy is when the child gets older say 5-7 yo as many faced eating disorder causing over weight of which it may complicates getting medical insurance.

As for the investment for the child's future, it depends on whether do you include any savings to the policy or purely buying it for protection.

Knowing exactly how much you need for the child's education (including the inflation factor, spoken to a few colleges and it is most safe is to foresee an 7% inflation per year) when he/she hits 17/18 yo will definitely helps in planning.

Having said that, you don't have to put in everything into the insurance policy and diversify your investment portfolio, example property/ies.

As you had mentioned, the insurance policy is for just in case both parents are not around to care for the child, which is the worst case scenario.

3. For your info, a child's plan with medical (and no fancy riders) may cost in the range of RM150~RM180/mth. You may also add in small deductible (say RM300) to lower the premium. It is not always your child needs to be hospitalized and even if the child needs hospitalization, as you had mentioned will be using the employer's medical insurance.

If that premium amount is over your budget, then you may have to put the insurance plan aside, seriously.

4. Again this boils down to your budget. You may include riders that increases the medical limit once every year or two automatically if there is no claims, or you may choose to increase it along the way.

HTH

Hi Roy,

Just would like to clarify, my daughters are having PRU ILP + Med policies, it will be expiring at their age 25 (expiring date stated in the policies), can the policies "continue" or "upgrade" by my daughters when their age at 25? I was told to buy a new policy and drop the old one.

Btw, would also like to confirm...getting new proposal / underwriting a new policy, we need to pay the premium in full, before proceed the underwriting? I remember I was not pay anything until I accept the offer from insurance company previously.

Thanks.

This post has been edited by clickNsnap: Jun 25 2017, 12:53 PM

It sounds kind of weird that a policy for a child would expire at 25 years old especially its an ILP with Medical Card

Food the sound of it it seems like your agent is encouraging to surrender the policy and buy a new one

You should be able to continue your current policy and upgrade from there

Unless it's stated clearly in your policy contract that your child Policy will not be renewed at 25 years old.

Thanks for the advise lifebalance. I will bring the policy and check with Prudential office.

How about...getting new proposal / underwriting a new policy, we need to pay the premium in full, before proceed the underwriting? I remember I was not pay anything until I accept the offer letter from insurance company previously.

Any one can confirm "pay first, before underwriting and accept the offer"?

yes u should to protect u and ur family
else u will work to pay doctor next time

The process is your case will be underwritten first, if approved without any check up requirement then only you will be billed by the insurance company for your premium

This post has been edited by lifebalance: Jun 25 2017, 03:03 PM

Thanks for your confirmation.

Older child education plans are only up to age 25, even though its ILP. If you want to upgrade it, then it has to be on a new policy up to age 100. You can request the agent to do a transfer of medical card to the new policy so that the waiting period is not imposed on the new medical card.

If there are health complications or uncertainties of whether the case will be accepted by UW, then you may submit the case first without 1st month premium payment. Agents like to collect the payment first cause they don't have to do double job of visiting you again just to collect the premium. You may tell your agent that you can now "Pay Thru Phone" if the case is accepted (new payment feature by Pru)

If you pay first and later the new case is not approved or you do not accept the conditional approval letter, you'll be reimbursed back of the said premium.

Guys, stay safe this Raya....

Boy playing with firecracker dies

Thanks Roy, looks like my daughters' plan are the old education plan with old Med card. Will consider replace it with new aldult plan.

while searching for pure medical card without investment & other protections, i found out few of the mainstream companies do not have such product, all of them are investment linked / compulsory to take up some sort of life insurance.

for what is worth mention is that BNM has enforced an initiative for Direct Distribution Channels for pure protection products, directly from the insurer without commission paid to intermediaries (agents) and possibly lower cost to consumer. such products are expected to be available 1 jan 2018
i believe this is gonna be similar initiative introduced years ago, for 10% discount on premium for renewal of motor insurance online with insurance company directly.

few areas that i think worth to highlight is clause 5.2, 7.2, 8.1 and 8.2
http://www.bnm.gov.my/index.php?ch=57&pg=140&ac=536&bb=file

so are looking for pure med card, and can afford to wait another half a year for lower premium, then this probably a good option to consider.

There are a lot of general insurance company offering it if you haven't notice. Don't mistaken, life insurance company do offer standalone medical card as well.

Sure you can afford to wait for another half a year if there is any lower premium.

Are you able to guarantee yourself nothing happens in the next 6 months ?

Let's calculate if you start 6 months from now, you pay RM150/mth for an insurance coverage, that's RM900 in 6 months time. Let's assume you desire to get your 10% discount, RM15 from RM150, that's RM135/mth. In total you'll pay RM810 in 6 month with 10% discount.

And suddenly within the 6 months time, you get into some medical condition which cost RM50,000 to fix the problem.

What's your total gain/loss?

There is a saying goes, penny wise, pound foolish.

This post has been edited by lifebalance: Jun 28 2017, 12:04 PM

oh crap, i'm so scared, almost piss my pants. let me quickly go buy a policy before i walk out of my office. lol.

Hi guys, I'm a life planner.
Yes, with AIA as well.

I'm sure many are here for advice, for options, sometimes even alternatives, all with regard to personal insurance and hopefully some insight into an important chunk in our finances.

I have used this forum as a "training ground" for myself, attempting the many questions and scenarios that the contributors here have so selflessly shared. Among them, I have learned a lot from mainly roystevenung from Prudential.

While it is true that I have also acquired some opportunities from forumers on this thread, I believe my real worth (and many agents soliciting business here) extends beyond just a cheap medical card, and my role in my customers lives goes much much further than the process of helping them acquire their insurance policies.

Yes, personal finance can be a sweet ride when done adequately. Yet the ramifications are unimaginable if ignored, especially to our immediate family and others that hold us dear to their hearts.

While the consequences may sound scary now, I believe it doesn't come close to capitalizing on others' fear of the future now.

Maybe we want to elevate our industry from selling fear to selling financial management, and above all things valuable, our service.

Thanks for the feedback lifebalance and roysteveung.

Yes, budget is the main concern here as my spouse and I are already spending almost RM700 a month in total on our own insurance policies.

Which is why was considering on whether to wait for another year or so before buying as currently already covered by employers insurance. By then some loans would have already been cleared which makes it less taxing on the pocket.