That sounds just like every other insurance speak out there.

Even if one subscribe to an insurance at an earlier age, the cost of insurance is always tied to the current age of the policy holder. The difference in policy price that an older policy holder would pay lies on the fact that they would have started to pay for their policies a little later than the younger ones, thus contributing to their savings fund a little less. As such, it is still possible for 2 people, one older and the other younger to pay the same amount of premium (in my example below, RM2400 a year), the difference would be the amount of of cash value invested in their accounts.

Of course, agents will say that for an older person to pay the same amount of premium as the younger one, the cash value of their accounts would be less or in worst case scenario, depleted and thus they have to pay extra during their later years, I say so be it! It would be better for the clients to invest the money in a purely investment vehicle like UT than to do it on an insurance as part of the ILP due to the fact that the insurance companies are taking in up to 25% of the premium paid on the first 2 years of the policy inception, and a little less in the subsequent 4 years (but more than any other investment vehicles)

While I condone everyone taking their insurance at an earlier age, I am tired of the way the insurance agents are misrepresenting the information. To help illustrate, I've drawn these illustrations (not to scale):

p/s That is not blood on the scanned paper, that is sambal.



Take a good look and if anyone needs an explanation on it feel free to ask.

What is your age, gender, and do you smoke?

This post has been edited by wild_card_my: Nov 22 2014, 11:05 AM

Sambal... nice...

Hm.. U noticed that fellow LifeBalance & another forumer EmilyGoh that plays "wolf-in-sheep's clothing" (agent pretending to be customer) BOTH are newbies joined in Nov? Both also half-baked "agent" giving infomercial kaka insurance advice, which is exactly like a flower seller or jeweler advising on what to gift to your lover .

Hope your video helps NUKE these BS artists.
If need editing, subtitling etc. - let me know yar (FOC lar - i'm also "on a mission"). I'm a general worker doing all sorts, thus from Excel-Google Sheet to video editing pun boleh )

This post has been edited by wongmunkeong: Nov 22 2014, 12:02 PM

Good to know! I definitely need help. Ill contact you immediately right after I kemas my house (weekend is to kemas the house!). We can do this through PM. I'll PM you.

p/s As you see I know the idea to talk about but presentation is meh. I hand draw my illustrations or use basic excel

no problemo.
btw, i suck too @ power points / graphs/charts (formatting this/that they are such waste of time IMHO )

i feel U - weekdays, making $.
Weekends - house keeper
same here - but hey, it's good excercise and stress relief (i've OCD i think ).

Hm, this seems interesting but I don't really get it. Isn't the breakeven point is usually reached after 15 years of paying the insurance? (somewhere i read randomly before)
Or is this referring to a different kind of breakeven. Do you have tables based on actual insurance quotation to clarify the breakeven point?

1. Like I mentioned earlier, the graph was NOT to scale, all number and figures are randomly put together.

2. Whether or not the breakeven point is reached after xx years is determined SOLELY by:

a. Your cost of insurance (That is your age + the kinds of protection, coverage, medical cards, and other riders)

b. The amount of premium that you pay each month.

3. I will definitely get you all the tables from actual quotation soon. Thanks for the interest.

Bro, for life insurance, the premium really depends on your age, sex, occupation and smoking status.

Generally for age 20-30, ILP Life Insure RM200k only will be RM100/mth

But normally will suggest to have life insure for 5-10 years of annual income in order the breadwinner's family able to sustain their normal daily expenses for 5-10 years. So they no need to sudden tie up their belt & suffer terribly in rest of their life due to lost of breadwinner.
Just remind, when the breadwinner not around, the house loan, car loan, education fees, grocery expense, utilities and other commitment don't stop due to the loss.

Term policy to cover till your retirement age of 60.

sifu @wongmungkeong & @wild_card_my, any opinions on perkeso / SOCSO as replacement for Life/TPD insurance? I honestly have not much info, but the following is my situation and why I am considering to subscribe to perkeso

I am single, 27, non smoker, a bit overweight, working in oil & gas, no dependence (do give ~RM 500 to my mom a month for expenses but I have 3 other working siblings & my mom has a village house no loan etc), I also have an MRTA 400k home loan which I believe sorts of leaving behind that much (not liquid) money behind if/when I die. Some EPF also after 5 years of working, should be enough for short term.

As mentioned, working in O&G, good company medical card & coverage, so I have yet to get any medical card or insurance. That also puts me in high risk occupation (go offshore/on site). Last I checked with an agent that means I have to pay around twice of other office workers for same coverage.

Bottom line, should I subscribe for SOCSO & should I also look into life/ TPD of conventional insurance as well? I am just starting to increase my savings beyond the emergency fund right now. Any flaws in my assumption & potential trap/risk, disadvantages of SOCSO etc, thank you very much

SOCSO? It's sufficient if for most of your life you only go to work, or back from work, or is filled with work-related travels. It doesnt cover anything that occurred away from work, or non-work related: " “Employment Injury” means a personal injury to an employee caused by accident or an occupational disease arising out of an in the course of his employment in an industry to which this Act applies."

1. Now you mentioned that you are working for O&G, and like many other companies, it has a medical card policy for their employees, that's fine. But you also mentioned that you are a little overweight. Will you be able to keep yourself healthy for years to come? Insurance companies bar those with pre-existing condition from subscribing to almost any forms of health-and-life insurances.

2. Will you be working for the same company forever? Will the company lay-off their employees (Such as yourself) during a down turn? Will you leave the company for a different one or to start your own business? Consider that once you leave the company you will be without any coverage. As I mentioned earlier, if a medical condition were to appear from now until you leave the company you are currently working for, you would be ineligible to subscribe for any insurances - but of course you would be covered by the company you are CURRENTLY working for, but that would force you to tie yourself to them

3. The bottom line is you should think of insurance/medical card as part of your cost-of-living. It is never about investment, only a less-than-truthful agents would claim that their insurance is making their clients money! Whether or not to take it depends on how you want to live your life, how you want to manage your career, how healthy you think you will be, and if you think you will be immune from accidents going forward.

My rule of thumb is, get a coverage that you think you need (RM500,000 life, and a good medical card) and minimize the premium to be paid by reducing the investment portion of the insurance policy. The rest of the money you have save should go into your investment portfolio. Insurance agents on the other hand will solely increase your premium paid because they are paid commission based on the premium, and not the amount of coverage!

This post has been edited by wild_card_my: Nov 24 2014, 10:19 PM