bbjslee,

yes, i asked my existing agent, but at times, hv doubts/trust issues...that's why want some re-confirmation

hello all, i'm a tertiary student, 22/male. I have few question regarding life insurance....I hope you guys can help me out... thank you...

i'm currently holding a ING policy. it's a purely medical plan/medical card (a life insurance with BSA of 5k and medical plan rider, IMP 3) with annual limit of RM110k. My current premium is about RM 700 p/a

i'm planning to get a 3D protection(Death, TPD, CI) as well. My budget is around RM 800 p/a.

1. Wat do you think about my current medical card? Is too much to pay RM700 p/a for a medical card?

2. Issit advisable/preferable that I upgrade my current ING policy or should I buy a seperate policy? I'm currently eyeing for GE's Supreme Living Care.

3. What is the protection that i can get from RM 800 p/a?

4. I've gotten a policy quotation (Supreme Living Care, traditional 3D policy) from my friend, a GE agent. With RM 1500 p/a, i'm offered BSA of RM55k, with cash bonus. The BSA is to increase every year. BSAs at every 10 policy years are 77k, 99k, 110k, 110k, 110k, 82.5k.

What do you guys think about this. At RM1500 p/a the BSA is Rm55k... is that too little? At RM800 p/a the BSA surely will be way lower.

5. In general... are policies upgradable? I plan to increase my life insurance protection once i've started working.

thank you....

thank you for your input.

1. co-insurance means both the insured and insurer have to share the cost right? isssit true that all medical card are term insurance?

2/3. hmmm... any ING agent here? can give me quotation for 3D protection, RM 800 p/a?

4. at least 3 years of expenses... that's alot ain't it. BSA of RM 150k? i think the premium is about RM 5k p/a already. I can't afford it... at least for now... coz i still leech from my parents.

5. Really? But I read on some thread, they say most likely traditional plan is not upgradeable.

6. Ah.... another question ah... what do you all think about investment-linked plans. If i were to go for investment-linked, i would get more BSA for RM800 p/a right? (compared to traditional plans).

1. Ok.. Get it...

2/3. I personally dunno this agent. It was my dad who bought this policy for me, 2 years ago. Do you knoe any ING agent?

4. I see your point... Thanks for enlightening me.

5. It's on this thread also. I might have interpret it wrongly though. Refer to the answer no. 1 on this post : http://forum.lowyat.net/index.php?showtopi...post&p=13986660

6. Harh... then why don't every1 buy term insurance since it's cheap? ILP's BSA is not guaranteed right? if GE's ILP can offer BSA of RM207k @ RM 1200 p/a, why would anyone buy SLC which only offers BSA of RM50k @ RM1500 p/a ?

Btw, ILP is a pure Life Insurance right? It doesn't come with medical card?

Thank you!!! I really appreciate ur reply, bbjslee

6. Ok assuming that I want to own both of them and I can only choose one of them at the moment. In your opinion, which one should I buy first, ILP or SLC?

And which one offers more protection, ILP or SLC?

7. Both ILP and SLC also can add riders right?

8. Can you adjust the protection:investment ratio/leverage in ILP? i.e. with the premium fixed, can i adjust the level of sum insured that i want? So it will be more protection, less investment. And can I allocate the premium on protection alone, and no investment?

9. I heard that starting next year, GE is not going to offer SLC anymore. Issit true?

Thank you!

Wow, so many pages already. My cheap 2 cents view (can't buy anything with 2 cents already..) is that if you're that young, you don't need to buy life insurance, unless you have dependants. The life insurance is for your wife or kids to survive, not yourself (you'll be dead already).

1) Also, not sure if this is mentioned, but about 70-80% of the first year's premiums go to the agency/agent. The 2nd year, 60%-70% and the 3rd, 50%-60% until the 5th or 6th year! So if your first year premium is RM1,000, your agent & his/her agency happily gets up to RM800 in their pocket. But nothing after the 5th to 6th year. That's when most agents "disappear"... never send you happy birthday cards anymore..... Or, they call you - to start a new policy or to increase your coverage! 99% of all agents don't tell you this commission structure that they get so fat on, but read your policy - it's in there. Now you know why agents so keen to call all their friends & relatives to buy.

2) They always tell you, the earlier you buy, the cheaper it is. This is very misleading. If you don't need it, don't buy it yet - you are just wasting your money and keeping the agents very rich. Keep the money in FD or gold etc first, or when the stock market is better, invest in unit trusts or directly into blue-chip stocks (some pay good dividends too). When you need life insurance, ie get married to a wife with no income, or have kids, THEN buy insurance. In the long run, it's much cheaper this way.

a) Agents try to convince you that the premium is "cheaper" when you buy earlier. Sure, you might pay RM1,000/year at 20 instead of RM1,500/year at 25. But you would have wasted RM5,000 from 20 to 25 for coverage that you don't need!

b) They also try to say that part of the RM5,000 will be invested and you will have returns. When they show you the impressive chart of returns, it's usually based on some fantastic estimated figure like annual 10-20% returns (which will be impossible this year, look at the stock market.). Also, the returns will have many fees deducted - administrative fee, policy fee, management fee. Check for these extra charges. Prudential lists these, not sure about others, they might not be listed, but they're there. It might add up to a whopping 4%-6% off your "returns".

c) And, the actual cost of coverage always increases with age. It's just mathematical - when you get older, you are more likely to die. They just "hide" it by keeping your premium the same. As mentioned, they invest a portion of your premium, and the returns are used to offset the higher cost of covering you. But if the returns are not enough, then expect that they will increase your premium as you get older. They might be some "guarantees" that the premiums will never increase - but of course, you don't get a free lunch. These premiums are higher to begin with. Much like your bank "capital-guaranteed" structured products.


I have nothing against life insurance though. It's a lifeline for dependents. But if you don't have dependents yet, you really don't need it. It's like buying baby powder 5 years before you even have a kid.

There is a very special situation where life insurance might come in handy even if you don't need it - as a tax saver. If you know your taxable income every year is RM75,999 after all the deductions you can take (books, sports equipment etc) - then just buy a RM6,000 policy. Wham! You are knocked down from the RM70,000 tax bracket (24%) to the RM50,000 one (19%). You pay 5% less tax on RM69,999, and essentially don't have to pay 24% on that RM6,000. Of course, if every year you make RM70,500, then no sense to buy insurance, just donate RM501 to charity and save 5% on tax. Cheem, right? Check with your accountant though, don't let these rotten people take your money and waste it on angkasawans or stupid projects.

Medical insurance is a different matter...

Any dissenting views?

life insurance is only a tool for us to reduce income tax. Frankly speaking who likes to be death and let the relatives to get the insurance money (even the relatives got it - the value might shrink tremendously due to heavy inflation)

hi guy i know this thread has been stop in Sep 08,

but i need some advice here pertaining Term Insurance,

i am married with 2 child. Hence, i would like to have protection against Death/TPD or maybe 36CI.

Having say i read thru the thread and bit consufed on which to choose. as i am not looking for return nor investment type( which i can do it better in stock/forex/properties).

And i happen to found out Bank is also offering Term Insurance thru their Insurance arm.

Here is one from etiqa, daily rm25, Death -200k, TPD-200k.

URL : http://www.etiqa.com.my/index.php?ch=isrpe...list&ac=9&tpt=4
I found this is way cheaper than all you guys is debating from GE SLC product. Can someone mind to tell what the main diff and pros/cons.



Thx ahead

Thx nevertheless, but i am opting for pure protection aka insurance. I try to use other alternatives for saving $$$

bbjslee, i dun really get your point here, cna you elaborate more, pls correct me if i am wrong
1. Term & Life (Insurance Comp like GE, AIA, Pru, etc)
2. Covers 2D only(Bank Policy), covers 3D (Same as 1.)

Thx

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

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