Hello everybody,

Can anyone recommend a good Personal Accident Insurance?

I also have the following questions:

a) are PA insurance premium claimable under tax relief? If yes, does it falls into life/kswp RM 6K category or the medica/education RM 3K?

b) AIA Easy PA coverage requires premium of RM 217 per year for a coverage of RM 100K. Isn't that pricey as I understand PA insurance should be relatively cheap... some are even FOC! 

Appreciate some feedback. Thanks in advance. 

thanks for the info......

hv to really think about this... when broken down to daily... seemed little... teh o peng only:P but feel like coverage very high ler.. whether really need that high...

do you realy know what is life insurance?life insurance pay you due to nearly all courses if die and tpd happen.namely,deasease.a pa only pay if is due by accident,so it is wrong to compare life insurance with pa.

buy life insurance is not just for your family,but also for fear of tpd happen,anyway,i do agree with you that there is no need for super rich people to get life insurance.

Hi,

I am a 26 year old male currently working.
I don't have any policy with me for the time being.
My only dependants are my parents.

I am little confused with the insurance products out there.
What should I buy? Any advice and recommendations would be appreciated.

Thank you.

Hi hamster9,

Thanks for ur reply.

Sorry for my ignorance. What are the benefits of getting one earlier?
Isn't it getting more expensive for example, Critical Illness and Medical Card when one gets older?
Does it mean if one buy earlier, he will lock in the premium? 

Also, you did mention abt the clauses that one need to take note. For example?

Thank you.

FYI, Axa Affin Life Insurance have Critical Illness which doesnt increase. Mean, the younger you take, the lower u pay.

know what is super rich?uncle bill ,uncle buffer....last time lyn has also discuss this issue,this kind of people do not need insurance due to:

1)no company can afford to insured their life

2)premium for million or billion sum assured is high and not realy worth to buy this kind of plan.

3)their earning ,their company is many times greater than those insurance company.

do they need buy medical card when they already can hav personal doctor?don't get me wrong,they do buy insurance for their business,but they don't buy their own life and medical insurance.

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Added on August 8, 2008, 1:16 am

ilp are well known be super expensive when old,so if possible,do not continue after 55 years old.

i suggest you read the whole topic from post no 1,this topic is a good starter point .

1)medical card premium grow according to ur current age, not according to when you buy.

2)one of the early post have already state,buy insurance when you need it,not because of it be a little cheaper when you are young.

dont get confuse of buy early and it is cheaper

when you are young you have been paying the premium you need to pay when you are old and the compounding interest you have invested in. Insurance company are ten times smarter than you.

ILP is totally not worth it. If you want to invest, invest somewhere.

Medical insurance around age 30 will cost you around  500 while you were paying for ILP lets say 100 per month and total = 1200, where is the rest goes to? It goes to your investment and investment will pay for the increasde premium in the future years when you are old.

Touch wood investment tak jadi, you also have to fork out your pocket to pay for the increase premium.

You want medical card buy medical card
you want life insurance buy traditional type with bonus and critical illness and sum insured will increase every year type of life insurance
personal accident dont bind together with your life insurance, buy seperately from non big insurance company. Allianz has a good plan. other than that tune money also giving a good one. astro also got give free PA, AAM also got give, MAA also got give free.

Choose wisely.

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Added on August 8, 2008, 7:31 amwhere is the rest ILP premium goes to?

Insurance charges where they buta buta charge you every month.

Every month they buy sell buy sell unit trust, the different from it they are earning and laughing on the floor for big water fish swim in without need to do any effort.

yes, in fact one of my relatives who is selling insurance told me that the best is to buy term insurance, which the agents can't earn much(that's why they never promote this product to most of the clients).

what's the difference between life vs term insurance?

Permanent life insurance is a form of life insurance such as whole life or endowment, where the policy is for the life of the insured, the payout is assured at the end of the policy (assuming the policy is kept current) and the policy accrues cash value.

This is compared with Term life insurance where insurance is purchased for a specified period (typically a year, or for level periods such as 5, 10, 15, 20 even 25 and 30 years) where a death benefit is only paid to the beneficiary if the insured dies during the specified period.

Permanent life insurance originally was offered as a fixed premium fixed return product known as whole life insurance also known as cash surrender life insurance. This offered consumers guaranteed cash value accumulation and a consistent premium. Consumers later wanted more flexibility which was offered in the form of universal life insurance. Universal life insurance allows consumers flexibility in when premiums are to be paid and the amount that they would be. Universal life policies also allowed consumers to permanently withdraw cash from the policy without the interest associated with the loan provisions in whole life policies. Universal life policies retained the fixed investment performance of whole life policies. Variable life insurance follows the mold of whole or universal life, but it shifts the investment risk to the consumer along with the potential for greater returns. Variable universal life insurance combines this with the flexibility in premium structure of universal life to create the most free form option for consumers to manage their own money (at their own risk). Variable universal life insurance policies are considered more favorable to other permanent life insurance alternatives due to the favorable tax treatment of all permanent life insurance policies and their potential for greater returns than other permanent life insurance products.

wow ...so many terms here    but basically it's actually a product. Life insurance is only divided into 3, which is endowment, term and wholelife 

Payout likelihood

Because Permanent life insurance programs must always pay out, the cost of insurance is considerably higher than term insurance. Term insurance is referred to as pure death benefit with no cash accumulation vehicle tied to it. Because of this, term programs remain 8 to 10 times less expensive than a permanent program for the same coverage. Most people are drawn to term insurance for the low cost and the ability to invest the difference in separate financial products. Doing so has a severe drawback in some cases because all term policies eventually expire and the client would then have to pay a higher premium based on his attained age or he may not be able to qualify for a new policy at that point. In these situations, money earned from investments may not measure up to the coverage the policy would have provided.

what you meant is traditional life insurance? If yes, inside the policy will state how much guaranteed value you will get. Does not depend on whatever happened to the economy. There are also the non-guaranteed value you would get too, ranging depends on the economy in Malaysia. That, the risk is minute. Unless you are talking about ILP. 

Sorry to say that Life insurance is like paying money to those insurance agents ('goyang kaki makan gaji buta') and at the end you might not get what you really want if something happen (choi choi...)
I don't know about you but I treat my job as a noble job. When the time comes to claiming, let's see who is goyang kaki and who is running around helping to get the doctor's report/death cert (choi choi... )   

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Added on August 8, 2008, 9:33 am
A lot of people got misconception that after you have bought life insurance, you are power safe. Pls make sure that you read through all the clauses in the premium contract. The insurance company may not pay you a single bloody cents if something really happen, depends on the clauses.

For a young man who is having more risk on the road with motor vehicle accident, i should say its more worthwhile for him to buy accident insurance first, which is much cheaper, and cost effective. The life insurance can be bought a bit later after he is financially stable.

I do not define it as power safe but the sense of security is there. For the very least you do not burden anybody for the funeral expenses (if you are single with no dependants except your parents) or a peace of mind your loved ones are not burdened.

come to think about it, many thanks to my long dead uncle who left me a house which I have to continue paying since his family can't afford to continue the loan coz no insurance 

But what's worse is not dying and stuck being a crippled for the rest of your lives or maybe activate an auto-immune disease where medication and constant healthcheck is required. I've seen people with SLE, rheumatoid arthritis, etc that needs constant medical attention.

Total cost of insurance should not exceed 10% of your income. that's all. You are paying more, then too bad that you did not engaged with an experienced financial planner. How do you define financially stable?
Which type are you?
A. INCOME - EXPENSES = SAVINGS

-OR-

B. INCOME - SAVINGS = EXPENSES

this is what dreamer 101 been emphasizing. Savings come first before expenses.   

1)term life insurance that sell in malaysia nowaday are mostly 2d,that is death and tpd,now there are not much people still interested on the purely death term life.

2)yes,term insurance may be not easy to get claim,howewer,if you know insurance company enough,it happen to the accidental insurance too
.

quota:

Doing so has a severe drawback in some cases because all term policies eventually expire and the client would then have to pay a higher premium based on his attained age or he may not be able to qualify for a new policy at that point. In these situations, money earned from investments may not measure up to the coverage the policy would have provided.'

this is a mis concept a lot asian ppl towards life and term life insurance, last time lyn senior like dreamer and other are already state,we actualy don't need life insurance when we are old,due to life insurance in old age is expensive and no more caver your tpd,only cover death,we better safe the cost for medical need.

lyn seniors are also not encourage buy whole life insurance,because whole life is actualy charge your insurance premium by  averaging your total cost of life insurance from young to old,that why whole life insurance are always refer as high premium,low coverage.

quota:

'when you are young you have been paying the premium you need to pay when you are old and the compounding interest you have invested in. Insurance company are ten times smarter than you.'

yes,this is happen on the whole life with cash bonus plan you say.

ilp is another story,it premium increase according to your age,regardless when you buy the plan.it work like medical card.yes,ilp is not a good investment tool,howewer,if you study their cost totaly ,for young people who buy it at young and surrender it before age 55,it is actualy a most cost effective insurance,even cheaper than term.

the moral of the story is,we need to choose life insurance according to what we need and our condition.

This is reply to hamster9 on post 182:

1)please don't try to explain people post,you are manipulate my post dear.

2)please read my post properly before you reply.

quota:

'then what happens after age 55?

what you mentioned are partially true especially the surrender the ILP or mayb just convert them into purely unit trust. '

i say,a ilp is very expensive to hold after you reach 55 years old,so better terminate it,i not saving don't buy insurance after age 55.(post 169)


yes, understood and noted. i'm just curios to know what happens after age 55. It would bring a misconception to people that after terminate, no more coverage at all for them.

quota:

'So what happens if you are not dead but half dead? That's what I am asking. Still need money to pay for medical bills and probably some adult diapers and urine catheters? I've been a medical assistant for sometime back then during college times, helping doctors doing housecall for stroke or diabetic patients who has bed sores, replacing rice tube and urine catheters every week. Every visit, before the petrol hike would be around RM100. Imagine for month, or maybe a year? I would rather be dead than to be a nuisance to my family. I believe those who actually have taken care of relatives like that would know.'

1)as a insurance seller,i think you know better than me,no life insurance cover tpd after 65 years old in M'sia.

yes, TPD will cover to age 65. what about stroke? what about diabetes? those critical illness are the cause of their tpd. See the logic? people don't go TPD all of a sudden. there must be a cause, can be due to accident or illness.


senior dreamer and other senior are questioning why should we buy whole life insurance that include the charge very expensive and not cover tpd old age life insurance,me and they never say don't buy medical insurance dear.i remember that you hav also debate with dreamer before,how come you forget his point?
Have you not forgot the 36CI attached to life or your agent did not educate you on that and solely sold you the life with tpd only? insurance is a business. So does insurance company want to do a failing business? They have actuarial studies on Malaysian lifespan statistics. Which actually sums to people age as young as 50 now already have signs of stroke. I have debate with dreamer which made me more interested to be an insurance agent and take up CFP . 


quota:

'your normal concept is always bill gates and warren buffet...no other people to talk about issit? tongue.gif

why not look at the people in Malaysia? Look so far for what...'

senior hamster,post 163 and 169,we are talking about super rich people ,as a future cfp,i don't think u need i named who are those super rich people in M'sia right?
then unc buffet is in Malaysia now? Is unc bill in Malaysia now? No right? I even have a customer who is listed in the Forbes top 25 richest in Malaysia. Would that be enough? 
Quota:

'I wont reveal who but i presumed owning a Ferrari 550 as a leisure car would sound RICH ENOUGH in the definition in Malaysia or owning 2 units of Marc Residency behind KLCC would also be RICH enough eh? No need until Warren Buffet, our Sultan/Agong not even as rich as Thai King, so let's get back to earth on the richest few people in Malaysia. I believe you too couldn't afford the above, correct?

They still get insurance. Nuff said wink.gif

Company is company, personal is personal... insurance is risk transferring

Just because you have not deal with the rich and famous does not mean that others wont either. Of course there are special premier packages to cater such people. Not the normal medical card of room and board RM150/day package laugh.gif

Wow... I wonder which company in MALAYSIA has higher earning than PLC(Public Listed Company) like Prudential and AIA who are worldwide wink.gif See...you are not comparing apple with apple.'

ofcourse they will be super rich people buy personal life and accident insurance,but does this prove that they realy need it?does it prove that they worth to buy it?

have i contac with the super rich people is not important,please debate on facts senior,the important thing is,i know they are 2 kind of people do not need personal insurance,they are:

1)super rich people,where their asset far more than enough to cover their whole life and medical bill even they stop working .

2)our nation leader like Pak Lah,Najib,Agong and sultan,goverment have guarantee take care their whole life.

true,either me and you are not that group,but did you forgot our previous post is only debate on is that every one need insurance?if you forgot,please read them again.

facts is as above... your mindset is already fixed. Probably once you learn about risk management you would know. It's up to the people to judge it anyway. I have stated my point as true and happened.

Just for own thinking...
why would someone want to liquidify their own assets just to cover their medical bills and with liquidify their assets, to sustain their wholelife when they know back then money was hard earned? again simple... risk management.

well...you made the assumptions on rich people which is not true and i am just showing that your point is irrelevant because you do not know how big companies run.

quota:

'It's common sense my dear...
age increase, higher the risk of a person to fall sick/ have disease. Ask any old people around. Seriously ask them... they would say HEALTHCARE expenses is their main priority now.

There's a saying in insurance industry, when you NEED insurance is when you CAN'T have insurance. Just ask anybody in the hospital, they would surely say insurance is very important. I wish I could just sell insurance in hospital, surely many will sign up but unfortunately they can't. sad.gif '

1)you have say the same thing in early post senior.since both party have give their facts on should buy insurance when they actualy no need,if no new reason or supporting facts,i suggest we stop and let other reader to choose,if both party ended up keep on repeating the same thing,it will just be waste of time and create an non stop non finished argue.

2)there something i want to add,i and other senior never say people don't need insurance,we say that you don't buy insurance when you don't 'need'.the ward 'need' here we refer you buy insurance when you begin need insurance to protect you,we did not say you buy insurance when you realy need the insurance money to pay you medical bill or when tpd happen.as senior hamster you also have seen,senior dreamer also buy insurance,what we try to point out is,people need to buy the right insurance at the right time.and as you post 182 also agree,we don't buy insurance we not need.

ward?    I didn;t say you. I only remember i replying to muscaa and wufei about it. The fact I have againts you is on super rich people don't need insurance. 

3)your above quota is assum something must happen to a person,in that case,even he buy a 1 billion coverage is still too little ,while i can also assum that person sure nothing happen and live healthy untill 100 years old,then even he pay RM1 for insurance is a waste.ofcourse as a future cfp,you should know better than i,we dont buy insurance base on this 2 assuming,too risky,a better way is through a rasional planning,example for personal insurance,use 10% of your income to buy a coverage 10 times your yearly salery,this formula,i do agree with you.

like mentioned, coverage for wholife as mentioned earlier is more expensive. Why? Coz there are savings element in it. So will the money burn? No.

My turn in giving you a rationale thinking. Find me 3 old people who have reached 100 years old who has never been admitted to the hospital and still alive.

With our current lifestyles of bah kut teh, nasi lemak and roti tissue, my prime issue is now, how long we can live? Have you checked your cholesterol and sugar level already?

quota:

'Medical card will increase exponentially when after the age 40 onwards. Those who have ILP (Investment Linked Product), their premium stays(provided not much rider on the ILP). Secondly because ILP is made into the same policy, if a person suffers from disease A, he/she claims from the medical card...then next 2 years if the disease A is recurrent type of disease, he/she can still claim for it. This would differ if the person brought a standalone medical card. It would exclude disease A after being claimed.'

it depend on which insurance company.GE give more benefit to the ilp plan's medical card riderthan its stand alone medical card holder.,a lot company actualy no different between ilp rider or stand alone medical card.

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Added on August 28, 2008, 3:57 amby the way,other than super rich people and country leader,which are too far for most of us,their 1 more group people actualy don't need life insurance too

they are the retire goverment servant who enjoy their pension scheme.

let me give you 2 scenario which happened (true story)

A:
Staff nurse almost reaching pension age went for Hormone Replacement Therapy in which the healthcheck revealed that she is having 3rd stage breast cancer. Luckily she is still under the government which chemotherapy is fully sponsored. That's all. She couldn't work now and there is nothing paid to her and her family except for free treatment.

B:
Old man who was an ex-gov servant. He receives 1/3 of his previous salary as accordance to the gov pension scheme. Do you think it's enough for him? No. What happened now? He has to lower down his standard of living and earn some extra income from collecting aluminium cans to support the family. And one day, he needs a knee cap replacement surgery. The gov will only pay for the surgical cost while the knee cap which is imported from UK have to be fully borne by his own goodself  (RM30K) So do you call it enjoy their pension scheme? This old man retired back then in 1991 and still alive and kicking. Back then his salary was only RM900 which is quite a lot back then. With pension of RM300 per month, do you think it's enough now? gardenia back then was only RM1, now    He has to use the savings investment he made in ASB (back then unit trust wasn;t around) to pay for his knee cap replacement.