why have to terminate it? how if da person no longer insurable?

For ILP, the insurance charges increase and are very high when we get older. Of course, we must buy another type of life insurance first before we terminate ILP...

good ideal....

dats mean it is good to buy ordinary life rather than ILP unless budget limitation when YOUNG, since ILP is increasing premium from time to time

Not necessarily so... It all depends on what a consumer wants to get from his insurance plans. But, I personally prefer traditional life plans to ILP.

When I study all the life plans offered by AIA Berhad, I find that each of the plans has strengths and weaknesses depending on the purposes of buying them like education, protection, retirement and others...

It is really hard to say which plan is the best one...

This post has been edited by lcl832002: Mar 31 2009, 03:41 PM

Ok, asking a specific question here because I don't keep in regular contact with the original agent who sold me my insurance.

I'm signed up to the AIA Excel Plus plan for many years now, but now I kinda regret it because I didn't realize that for whole life plans you really do need to pay until you die. My question is whether or not the plan has any surrender value at all and if so, what determines the surrender value?

For whole life insurance, it does have surrender value and it is guaranteed. However, it is not high. The value of your surrender value depends on how long it has been in force and when you bought it (your age when you bought it). Your agent should have told you about it.

In order to help you to calculate the surrender value, I need the following information:

1) Year and age when you bought it.
2) Riders, if any, like medical card, personal accident and 36 critical illnesses.
3) Occupation.
4) Your state of health when applying it.
5) Sum assured for whole life insurance and each of the riders, if any.

Ya, it is not good that your agent didn't tell you that you have to pay premium for your entire life for whole life insurance. But, if the plan does fulfil your insurance needs, you should not terminate it. It is a life policy with the second highest protection and the second lowest premium. So, it is a very good plan for protection at the same time you will not lose your money when you surrender it in the future. In addition, you can choose not to pay premium for your entire life.

If you don't like the existing agent, you can find another good agent to serve you.

Hi All

Just want to share with you guys some information on insurance

1) Everyone should have a life -insurance that covers medical, hospitalization etc. The amount of insurance is strongly related to your gender, age, income. If you are fresh from the university, with your meagre income, you can afford to have a basis policy only. As you grow in your career, you can top up or get another policy.

2) Another popular product promoting by insurance companies is children education. Generally it works this way. You pay certain amount of RM, your child will get protected and in return you get XYZ after number of years.

My personal opinion is this product is absolutely diverted from the original objective that is children education. Here is why
a) You pay premium for the insurance policy, so that you can have a lump sum when your child needs the money in let say 15 years time. The amount you paid will be compensated with a 4% max return(refer below)

b) If you invest the same amount of money in other investment (Certain risks), you can get more that 4% return in average...(Diclaimer here)

c) For your child protection, you absolutely do not need this. If you child is no longer around, why you need this insurance money for. I am sure everyone want their child to grow up in a health situation. Hence the argument that life insurance bundle into children education is redundant. You are paying for the agent commission.

PLEASE TAKE NOTE THAT INSURANCE IS PURELY MEANT for protection. As the industry grows, insurance companies came out with variety of products that bundle saving, retirement, education to allow agents to earn commission and survive. As far as we as a consumer is concerns, you buy insurance for protection, i repeat protection. If you objective is to saving, or retirement or children education, kindly look at other investment tools like unit trust, shares, gold, etf etc. which can give you many times return that your insurance policy...

Under Insurance Act 1996, Bank Negara has a very stright control of the premium received by the insurance companies. For life insurance premium received must be in a tabung called Life Fund for the company. For others it will be in another tabung called Investment Fund. These two tabungs exist in all insurance companies in Malaysia. For Life Fund, Bank Negara strictly stated that insurance companies needs to invest majority of the premium received in MGS and bonds that are very safe (giving a return of 3-4%). On the other tabung which is the Investment Tabung, insurance companies are strictly prohibited to invest in unregulated products.. Rata-rata they invest in KLCI and again MGS (M'sia gov bonds).

IF you understand this structure, there is no way, insurance company can give you 7-8% of return in your policies. they can only give you max of 4% or less..........Hence that is why if you want protection go to insurance, if you want to save for your retirement, saving, children education, go to invest in other methods.

Cheers
Andy

Some of it is correct. But, where do you get the info that they ONLY invest in KLCI & bonds? And if they invest in KLCI, isn't there opportunity to get return of more than 4%?

haha 1st of all like what bro bbjslee said is correct . . . investment in KLCI definately will have higher than 4%, also take into consideration that there is much higher risk involve

I agree with some of the points posted by honwhy05. But I don't think the same about life insurance for children's education purpose.

Why is life insurance (endowment plan) for education purpose very important?

There is a newly born baby. If his parents die when he is only one years old, the banks will not help the baby to do saving for him. The unit trust agent will not help the baby to do fund switching to maximize his return. But, insurance companies will help him to save money provided that his parents attach a rider called payor benefit to the life insurance. In other words, the baby doesn't have to pay premium (insurance companies pay it) and the saving process will continue until the plan matures in the future. I can't think of a financial product that provides this benefit except insurance.

Unit trust is a very good investment provided that we are quite familiar with it. I don't think unit trust can be used as an education fund for our children. Unit trust involves risk. So, we can't guarantee that we can sell it at a good price by the time we want to use the money for our children's education. We can't guarantee that the recession happening now is not going to happen again in the future.

If the parents will not die or become disabled for sure for any reason, I think insurance is not important at all. They are able to earn income to take care of their child forever until he becomes independent. Unfortunately, we don't know what will happen to us tomorrow or later. If they die in a road accident and they buy life insurance for their child, I think it will be the last and the most precious gift they can give to their child before they leave the world.

Full-time insurance agents depend heavily on commission. I don't think it is wrong to sell life insurance and other types of insurance to consumers as long as the consumers know and understand what they buy and the agents have done all their duties responsibly.

=============

I coming from this angle.

Is the parent that needs to buy the insurance for his family hence that the first step is to protect the main breadwinner (mother or father). That is why 1st step of any financial planning is to make sure that the bread winner is well -covered before even talking about other things like retirement, children education and others.

If the breadwinner no longer around the insurance money received can help the child(ren). End of story.


With this point, we need not buy insurance for the children. Why you need to pay endownment that covers the child? Well i suggest you buys life insurance for your child, and tranferred to him/her when she reaches age of maturity or when she/he comes out to work.He/she can continue from there onward...


cheers

Ya, I agree that the breadwinner is the most important person to be insured in a family.
But insurance for children is equally important. It is just that we use it with different purpose, instead of protection. We can use it as the children's saving.

well, from my point of view, i do agree that insurance that covered parents may help their child(ren), but what if the unfortunate incident happened on the kid? if die(touchwood), then end of story. but if not die(e.g. CI, TPD), this will heavily burden the parents. for endowment, what if the CI & TPD is happened on parents? all the claims will be used to support parents' life. then how about kid's education, medical?

Being a new father, and as the mother is a school teacher, we decided to take advantage of the facilities provided by the government for health services accorded to a Malaysian (or more or less everybody) for my daughter.

Here's what I found :-

A. We arrived at the clinic at 7.00 am, and it is not in a big town like KL. Lines were already forming, with nearly 30 people waiting in line.

B. We left at 11.00 AM. 4 hours spent at the clinic, with a baby.

Lucky enough her dad is an insurance agent, and now she has a medical card. We'll send her to KPJ from now on. Its not that the government hospitals are bad, its that too many people are using them.

honwhy05 listed exactly the priority should be.

If you are rich enough, you can buy whatever insurance you want to, from endowment plan to 1 years old child accident policy or TPD or whatever.

Agents surely will tell you this A insurance is a must, B insurance is needed, what if something happened on your child then another C insurance also needed. No offence.

But in the end of the day, it is your disposal income dictate which one is needed. Want to take all the insurance then burden yourself and struggling to pay up insurance premium every month or annually? While left with no saving is not a wise idea. Also, discontinue the insurance policy or surrender it halfway due to cashflow ability might lead to more losses as well.

Life is not perfect, and cruel sometimes, you cannot have whatever protection you needed. So need to prioritise which one is more or most important. Just like a couple have a newly born baby or kids, the most important is to insure on the one that is the financial supporting pillar, not the child or baby. If the child passed away, the parent won't suffer (financially as insurance is about financially issue), but if one of the parent which is the main earner passed away, then we have 2 people are suffering.

hi all ..i didnt browse through every pages here..but i wan to know how much do i have to fork out for a BASIC insurance dat includes medical card?
im 30 dis year...thanks all

bout 1k will do for stand alone
but of course if you are buying with attach of a traditional plan or link policy it will require additional

Do you already have other Insurance Policy?

For a basic Insurance policy which include Medical Card R&B 200. About 180/month.

To encounter the problem you mentioned, financial planning is very important. From financial planning, we know how much income a person earns and what kinds of insurance he has. Then, from there we can try our best to find a solution for him based on his needs and affordability...