Welcome Guest ( Log In | Register )

Bump TopicReply to this topicRSS feed Start new topic Start Poll

Outline · [ Standard ] · Linear+

> Insurance Talk V4!, Anything and everything about Insurance

wild_card_my
post May 4 2017, 03:15 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(arilrifter @ May 3 2017, 12:13 AM)
yup, true, as i said as a muslim the source of the investment is better for takaful as the source is halal..

hmm, true about faraid.. but for my policy I've already stated who will recieve the money.. so i guess faraid would not be a problem? the same process goes to my wife prubsn.. she also named her own choice of nominee..

" I don't see there is any better coverage" ?? umm i meant that from the tons of quotes ive recieved on insurance products offered to me... i see that conventional insurance offers more in terms of annual limit, c.i and death.. the reason i chose prubsn takaful, simply because the agent that met me was more educated and convinced me he knows what he is doing.. dont get me wrong, there's a ton of agents that i met online that were excellent.. however the problem was they were mostly based in KL and im based in penang.. prefer agent easy to reach if anything happens
*
For PRU BSN, the nominee is considered as Hibah receiver, that is the money is not part of the faraid disbursements. If you do not nomiate anyone though, the person who claim the payout is considered as 'pemegang amanah' only, and will unlikely to get the whole payout for him/herself.
wild_card_my
post May 7 2017, 09:07 AM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(arilrifter @ May 6 2017, 10:34 PM)
umm thank you Roy and MNet for the advice..  i will take all of your advice into careful consideration.. but please lets keep the tone friendly smile.gif I dont really wanna be the cause of strife between you guys.. I love to read the low yat forum and gain knowledge because of how professional u guys are and how broad minded you guys are in your discussion
*
insurance agents and members of the public going at each other isn't unheard off. They work for their comms calculated based on the premium paid by the customers, so there is some ulterior motives to upsell and/or keep the premiums high. On the other hand, the public have a healthy level of mistrusts for insurances agents too, and it is just given all the flip flopping stories you read about in the news paper about unpaid claims... best is to go through all posts and learn as a whole, and then decide for yourself from whom to get the policies from.
wild_card_my
post May 31 2017, 01:26 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(Holocene @ May 31 2017, 12:25 PM)
Yes. In a way.

MLTA is a fancy way to say life insurance or how you put it personal insurance but specifically for your property loan.

Best,
Jiansheng
*
Agreed, but since the protection is level, and the mortgage outstanding reduces over time, the protection can be used for other purposes, like to cover the loans outstanding of a new BMW rclxms.gif

I like the fact that you are open about the nature of MLTA, it is a life insurance with the main purpose of covering a mortgage... MRTA is similar too, but it is absolutely assigned to the bank and you have to surrender it once you settle the loan.
wild_card_my
post Aug 15 2017, 01:56 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(ngks @ Aug 15 2017, 01:51 PM)
I disagree.
Years of service not always equal to service/knowledge level.

I met a UM who doesn't know what term life is, ask back the client some more.
*
the best agents are the ones that you can't guess how long he's been in the industry. you may think that he has 10 year industry, but turns out he only has 3, which means he knows his job really well
wild_card_my
post May 15 2018, 05:17 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(nova80 @ May 15 2018, 02:41 PM)
Thanks. How different are them? Need to buy them separately? No all-in package?
*
Be careful about these yearly renewable insurances though; because they are yearly renewable, the companies can choose to refuse your renewals. With PA it isn't that much of an issue, since most PA deals with accidents, death, and disability. But when it comes to medical cards, your claims this year may prevent you claiming next year and beyond
wild_card_my
post May 15 2018, 05:26 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(lifebalance @ May 15 2018, 05:24 PM)
To people who read this statement, kindly ignore what this person wrote above, this guy doesn't know his thing as an agent. Which is misleading.

There is no such clause anymore which suggest that your following year policy will no longer be eligible to claim for the same sickness you have claimed for this year. As long as you've paid for your insurance premium.

Cheers.
*
Wow, thank you for correcting me. Appreciate it. Do you have a news source pertaining to the changes of the policy?

edit: I did some digging around and found this: https://www.fundsupermart.com.my/insurance/...fe-insurance-35

"Plus, you may not allow to renew the policy for more than 1 time, so read the terms and clauses carefully. Besides, there is generally an age limit for the term renewal meaning you can no longer renew the term after a certain age."

Although it doesn't support my point earlier, it still stands that renewable insurances have limits to them being renewed. A few clauses here and there. Although I appreciate lifebalance in pointing possible errors in my posts, I would prefer that all agents/consultants/advisors work together and not simply comment to find errors in other people's ways. Be a good sport bro, you don't have to be so revenge-ful.

This post has been edited by wild_card_my: May 15 2018, 05:32 PM
wild_card_my
post May 15 2018, 06:09 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(Holocene @ May 15 2018, 05:56 PM)
Welcome back. You went missing for sometime. Good to have you back 😬
*
I had a big project, but I am back for good. Im about to publish my work so got some free time. I remember you face, you haven't changed your profile picture for a year now biggrin.gif
wild_card_my
post May 31 2018, 08:49 AM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(soules83 @ May 31 2018, 07:44 AM)
I decided to go for company that support easy self service because I faced bad experience with my agent. I changed twice to different agent but all are not responsive after 6 yrs if I didn't do upgrade. So, why should I pay agent for 6 yrs for free if they can't do their job when I need them? Insurance is a long term investment and its not limit to 6 yrs.
*
in the near future, if I heard right, the agents will get their commissions in 3 years, instead of 6 years as it is not. Which is good for the agent because they can get their comms sooner than later; but it spells bad news to the customers/client because they can be dropped by bad agents as soon as the commission payout period runs out


wild_card_my
post Jun 10 2018, 06:51 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(annachen @ Jun 10 2018, 06:37 PM)
Hi guys,

My dad bought me GE medical life and life insurance since young and now I'm 26 and decided to take over. And I've upgraded my medical annual limit and added some riders such as room board 300,hosp benefit 100/day. My question is... will the premium keep increasing by following our age? Or the premium payment will maintain the same unless I top up riders next time?
*
The short answer is that the cost-of-insurance will continue to go up, and that the premium will not be the same going forward decades into the future.

For a typical investment-linked comprehensive plan, the cost of insurance is made of the life table, and riders table. The riders table include the costs of your medical card, contribution coverage, all the bells and whistles, and these riders are usually not set in stone - the table is just a guide, but the insurance company has the rights to change it at any time, with notice.

So when the cost-of-insurance changes, the company will have no choice but to increase your premium provided that your agent did not provide enough "slack" between the premium paid and the cost-of-insurance. Regardless, the effect is still the same, the cost will likely to rise, and you will end up paying for it one way or another
wild_card_my
post Jun 11 2018, 11:17 AM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(ckdenion @ Jun 11 2018, 11:01 AM)
Hi annachen! Premium wont keep increasing by age but there is no guarantee that premium will not increase in any point in the future. Of course if you do upgrade (add riders/sum assured coverage), then premium will be revised.

Nevertheless, insurance charges will increase by age. smile.gif
*
Not necessarily, premium CAN increase with age when the condition is fitting. If the agent does not keep a good slack then you are bound to pay more premium a few years after the cost of insurance intersects the premium. Based on the example below, if the investment amount is depleted, a few years after subsidizing the premium (to keep it fixed at RM200/m as per the example), then you would need to start paying extra premium a month just to keep the insurance

user posted image


wild_card_my
post Jun 11 2018, 11:32 AM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(ckdenion @ Jun 11 2018, 11:27 AM)
yeap u r right. what i mean is it wont keep increase drastically like every year. when new premium is revised, i guess company will revise it and make sure it can sustain (of course not guaranteeing how long it can sustain). so long as policyholder is aware that premium is not guaranteed throughout the period then it is good enough. better still if we agents calculate the insurance charges then only come out with the quote that can sustain the policy longer. like u said, keep a good slack of insurance charge at the same time balance in between policyholders' premium and the amount for them to do their personal investment too.
*
I noticed that some products now dont even allow you to include slack, but slack is already factored in. So all you have to do is to input the protection amount and tenure, and the system will help you calculate the premium.

This is, in my opinion is good. Why let the agents control the slack, who are they to decide the slack - and worst of all, unscrupulous agents can manipulate the slack so they can earn more by giving too much excuses for the extra slack

For example, for a 25 year old (figures may be off):

a. Death/TPD RM200k can be had for RM110 with 10% of the premium as slack

b. Death/TPD RM200k can be had for RM200 with 100% of the premium as slack (good returns, but the client is better off investing in UT directly)

c. Death/TPD RM100k can be had for ~RM100 with 100% of the premium as slack (lower protection amount but better investment, what is the point? You buy insurance for protection, not investment)
wild_card_my
post Jun 11 2018, 12:06 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(ckdenion @ Jun 11 2018, 12:00 PM)
yeap u r right. most importantly is customers buy the protection they need and with the premium that they are paying, make sure they are aware with how long can that policy sustain. at least they need to be told that with the minimum premium for that amount of protection (client always request for the most minimal premium to have that amount of protection), how long can the policy runs. so long they know what they are paying for, i think thats very good enough. normally what i do is proposing the lowest premium (for example term insurance) plan and tell them whats in it for them, then at the same time give them alternatives if they looking for additional riders.

anyway, your info is very educative! rclxms.gif hope can meet up and learn more from u eh!
*
Thank you. I am a coach, so I tend to make sure that the fundamentals are covered before going into the details.

We can all learn from each other~!

wild_card_my
post Jun 11 2018, 12:15 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(ckdenion @ Jun 11 2018, 12:11 PM)
basically we need to be our customers' coach. educate them to be smarter consumers.
*
I mean, I am an actual coach; I get invited for workshops/classes and what not laugh.gif

But I get what you mean
wild_card_my
post Jun 11 2018, 12:20 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(Holocene @ Jun 11 2018, 12:17 PM)
Open house invite la!
*
For raya is it? Nah I x buat open house, looking forward to go to Mahathir's though
wild_card_my
post Jun 15 2018, 12:07 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(ckdenion @ Jun 14 2018, 10:08 AM)
hey got chance come we sit down together with wild_card_my and have a chat. i think i saw u ytd at wisma... hah!
*
Id be happy to have a sit down with you guys. Just drop a message

QUOTE(ckdenion @ Jun 14 2018, 02:34 PM)
yeap that one is a compulsory test before you can be contracted as an life insurance agent with a company. it seems like a sales job but trust me, it brings more meaning compared to any other sales out there. dont see it as a sales job. very difficult to explain through text. anyway, you will learn more when you are in the field. enjoy! wink.gif
*
Well you are providing a solution, no different to a consultation. The more you know about the industry as a whole, the more intriguing it gets. But the issue that I noticed is that, for any given personal-finance issue, there are multiple solutions to solve them. Insurance is just one way, but we may be too focused on that as opposed to tackling them as a whole.

That needs to be addressed. I remember that insurance agents will soon be allowed to sell UT or was it the other way around? That the tests would be revamped since ILP and UT are related anyway.
wild_card_my
post Jul 3 2018, 01:55 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(Unkelpipit @ Jul 2 2018, 01:57 PM)
Hi Guys, im planning to purchase life insurance for my wife, 38yrs old this year. Probably gonna get term life up till 65. You guys got any recommendations?
*
There are products that extends only to the age of 70, you can decide to terminate the policy and get the cash out at anytime, including by the age of 65

QUOTE(JIUHWEI @ Jul 3 2018, 12:05 PM)
Why do you want to purchase life insurance for my wife, 38yrs old up till 65?
*
The monthly premium for a shorter policy is usually (not always) lower than a policy extended all the way to age 100. While the cost of insurance may be the same for the years leading up to the maturity point of the shorter policy, the premium required by the insurance companies are usually higher for a "legacy" policy than a "retirement" policy

E.g. for a lady working as an executive, aged 30, looking for a basic protection of RM1,000,000:

a. 40-year policy (until age of 70) the premium may be RM400 per month
b. 70-year policy (until age of 100) the premium may be RM700 per month

This is because longer policies require higher amount of premium that will be used as investment to cover the difference between the cost-of-insurance (COI) vs. the payable premium. Look at the graph below, if the cost-of-insurance is extended longer, then the area below the COI and above the premium (let's call it shortfall area) will be also be bigger. The "investment" area may not be enough to cover the shortfall area. As such, one solution is to increase the premium, so the area of the "investment" gets bigger, the transaction point between the COI and premium is delayed, and the area of the shortfall is contained.

This is a valid reason to increase the premium, but only if the clients needs it. The higher premium may render the insurance too burdensome, for many, living in the now with a backup to age of retirement is more important than having a "legacy" insurance. Let me know if you have further questions on this.

user posted image

This post has been edited by wild_card_my: Jul 3 2018, 04:54 PM
wild_card_my
post Jul 4 2018, 09:22 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(Michael_Light @ Jul 4 2018, 08:58 PM)
Hi all, need advise on unit fund value for investment-liked policy.

So, i have paid 4x quater payment of RM750 amounting to RM3k. But i realize that my fund value only worth around RM400++. Knowing that the allocation rate for first year is about 40%, and premium should be allocated to funds before deducting cost of insurance, i find that the fund value is far below my expectation. Further, my selected fund is 100% on balanced fund which i expect it to perform moderately without drastic movement. Anyone mind to advise on this?
*
Please check your quotation or policy, there is a table that you can refer to. In the first year alone, about 60% of your premium is allocated to the insurance company as revenue to pay their own costs, including agent distribution fees (commission)

Balanced fund is fine, but as per any funds, you would only see a lot of movements after a few years, if you are lucky. Remember, you don't buy insurance for the sake of the investments. The investment portion is used to cover the costs of insurance that would increase beyond the annual premium paid, as shown previously here

» Click to show Spoiler - click again to hide... «



wild_card_my
post Jul 5 2018, 08:57 AM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(JIUHWEI @ Jul 5 2018, 08:45 AM)
Thank you for the unnecessarily long but informative post.
While it is informative, it doesn't cover the reason why Unkelpipit wants a life insurance for his wife for that very specific time period.
That was my question.
*
Oh sorry, I can go overboard at times when I am explaining things. The question that you asked can only be answered by him; but I covered the pros/cons of shorter/longer life insurances anyway. Illustrations and fundamentals are always important for the client. Have a great day ahead.
wild_card_my
post Jul 5 2018, 09:12 AM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(JIUHWEI @ Jul 5 2018, 09:10 AM)
Thank you for understanding the question now, and whom it was for.  rclxms.gif
*
Fixed it for your future reference. Have a great day rclxms.gif
wild_card_my
post Jul 8 2018, 10:00 PM

Financier Gone Wild +60133693993
*******
Group: Senior Member
Posts: 4,586

Joined: Jan 2003
From: Kuala Lumpur


QUOTE(rayragu89 @ Jul 8 2018, 06:38 PM)
Hi guys, in need of some expert advice here.
I've been a traditional policy holder for the past 11yrs, recently I requested to be changed to an investment linked policy.

However, I was told that in order to proceed with this, I will have to continue paying my existing traditional policy for the next 1yr before I could cancel/surrender.

So my question here is, why do I need to pay for 1yr, by right I could surrender my old policy once new policy activated upon reaching 120days, right?

Please advise.

*PS I've contacted my service provider Hq yet they couldn't give me a convincing answer for this 'mysterious' 1yr term.
*
If I can chime in, based on my somewhat limited knowledge in the insurance industry, I have a few assumptions and theories as to why you need to wait for the 1 year period

Assumption:

1. the 11-year traditional policy is most likely taken from a different agent, may be wrong about this though
2. the company for that 11-year policy is the same as the one you are applying to change to
3. It was the agent for the new policy that told you about continuing paying for the old policy for 1 year

Theory:

1. The agent wants to avoid "replacement of policy"


Again, based on my somewhat limited knowledge on this, the new agent (or could be same agent, but for the new policy) wants to avoid being penalized through ROP. ROP is triggered when you surrender a policy within 1 year of taking a new policy; in this case, the commission that is due to the agent for the new old policy is directed to the agent for the 11-year policy. As far as I can tell, this is the reason why the agent for the new policy wants you to continue paying the old policy for 1-year. The insurance industry is taking care of themselves, they do not want agents cari makan by destroying other people's rice bowl.

If I am not mistaken though, the ROP is not fully enforced between different companies. So for example if the 11-year policy was taken with GAGAK, and you replace it with a policy from KUCING, then the ROP may not even be detected. it is when the replacement is done between the same company that ROP is triggered.

I may be wrong, if I am, feel free to correct me.

This post has been edited by wild_card_my: Jul 8 2018, 10:03 PM

2 Pages  1 2 >Top
Bump TopicReply to this topicTopic OptionsStart new topic
 

Switch to:
| Lo-Fi Version
0.1752sec    7.21    7 queries    GZIP Disabled
Time is now: 16th July 2018 - 02:20 PM