When surrendering your policy, make sure you know what you’re doing.

If you have any pre-existing illness that is covered under your previous medical card, may not be covered by the new medical card depending on how the underwriter takes in on your pre-existing condition.

And if your old policy medical card expires by 70, that must have been a very old card haha easily >10 years ago feature.

Then you should cover for 450k under the MLTA*

This post has been edited by lifebalance: Apr 19 2019, 11:21 PM

Yes, I took a shorter period. Loan tenure left: 20 more years to go

There are still medical riders and policies that end at the age of 70. Although not recommended to subscribe to one, it can be cheaper and thus allow the less-wealthy access to private medical cards.

When recommending coverage, it is important to know how long the liability will last. The nature of an MLTA is that it has a level coverage. Should this coverage be applied to a reducing balance loan? Professionally, i do not think so. Inefficiencies in coverage (over insured) will be an issue.

It is best practice to find out more about the liability and the applicant, especially the tenure of the loan.

Graph out the outstanding, and figure out an insurance policy that will cover the libility. MLTA is an easy choice, but it is a level coverage which means that you can be overinsured (and pay more than you need)

You may look into "personal MRTA". Most insurance companies, even Prudential have them. it is cost effective especially if you only want to cover the loan balance throughout the next 20 years.


This post has been edited by wild_card_my: Apr 19 2019, 11:27 PM

Dear sifus,

I also requested my agent to quote me a one million medical card (until 100 years old) .

I came across this 'Target sustainability option : age 70 '

(The Insurance Premium is determined based on this chosen target sustainability. Projected sustainability year or age under the Projected Investment Return X% and Y% will be ranging around this target. Actual sustainability of the policy may be before or after the projected age / years, depending on the actual investment return, policy benefits and charges. Please note that actual sustainability may reduce if you stop paying premium or making any withdrawal from your unit accounts.)

My agent claimed, if put age 100 or 80, the premium I need to pay will be 2x compared to the price she quoted to me now.

I am confused.

Please advice.

Thanks .

Thanks

err, which company is this? Is this ILP?

If it is... well... look at the graph below. If you extend your coverage till age of 80 and 100, the premium has to be increased to cover the area under the premium-line and above the cost-of-insurance. if the premium is not increased, that area would be too small.



yw

Prudential. Yes ILP

Well there you have it. If you dont increase the premium, there wont be enough "investment" to cover the bigger needs to cover your cost of insurance. So the system will automatically increase the premium that you would have to start paying today.

It's basically just the application computation where it will set a higher premium allocation in order to sustain the policy for a longer period.

However it may not reflect accurately as overtime cost of insurance may increase more than what is projected at the moment.

Thanks. I will think about it.

Hi guys, i saw from Ringgitplus there are two types of premium types, i tried to search around but to no avail cant figure what is it in details.
Any one can clarify?

Flat means you pay the same amount until maturity (provided premium and value is enough to sustain cost of insurance)
Progressive means you pay higher as you age, can either be yearly increase or by age bracket e.g. 30-34 premium rate A, 35-40 premium rate B

This post has been edited by roarus: Apr 20 2019, 12:43 AM

Any pros and cons for both?
As in the case of this, I would assume for sure Flat type is better than Progressive, as I saw a lot person is not aware of this and suddenly they got increase in premium price to pay.

If flat, you may pay into the policy ahead of time. Please refer to the illustration above. The cons that I can think of with flat is that:

1. you are paying your coverage ahead of time
2. is the insurance investment better than your own through unit trust?
3. sensitive topic: commission are calculated based on the premium, in the first 6 years, so if you combine (1) and (2), generally speaking you are paying a higher amount of commission, compared to taking a policy with a progressive/planned increment.

Case-to-case basis though, you have to compare these offers and read the fineprints.

I'd say no harm getting multiple quotes from different companies and comparing how much you'd be paying for lifetime of the policy. I got a no commitment free quote from fundsupermart for a progressive rate policy and decided to keep my current flat rate policy.

The reason is because i am comparing Prudential PRUwithyou with GE Smart Legacy in the moment, I am 26yo this year
Prudential PRUwithyo
GE Smart Legacy

thou from the surface, it seems that I would go for GE because GE has
1) RM500k Minimum Sum Assured (PRUwithyou is RM100k)
2) Loyalty Bonus: Up to 1% increase of the Basic Sum Assured every year up to a maximum of 30%
3) Flat rate. Stays the same throughout coverage term. (which I assume Flat > Progressive, as I wouldn't want to increase my commitment as I aging?)

which GE looks more appealing
thou GE Smart Legacy doesn't show including critical illness, but I researched and see critical illness should be included in their Smart Legacy MAX premium

I am not looking at the quotes and products per se but here is what you can also consider:

1. the progressive premium, does it start at a lower rate compared to the flat premium?
2. what is the expected total premium payable for both quotes?
3. what are the rate increment expectation/guarantees, are they even available?

1) Do you have dependents (e.g. spouse, children, parents without pension) to justify the need for 500k sum assured at your age?
2) Comes to total RM650k after 30 years. Again, do you need that much?
3) Flat is not a guarantee - sudden spike in cost of insurance and funds underperforming projection can easily screw anyone over.

Another thing to look at is if anywhere in the policy says renewal is guaranteed as long as policy is premiums are serviced on time

Dear sifus, wanna ask. Medical card with co insurance vs medical card without co insurance, which one better?

I seeing GE medical card with high annual limit but lifetime unlimited and no co insurance.

And I having pruvalue med with MVP RM1mil with med saver RM300, this is consider limitation of my this medical card? My agent told me my medical card does not have annual limit, I actually don’t quite understand what he meant by no annual limit when my this medical card does have a limit of MVP up to RM1mil only.

Any expertise can explain to me?

In general, given the same company, Medical card with co-insurance has a lower Cost-of-Insurance (COI) than ones without co-insurance. The RM300 co-insurance is definitely a limitation to the card, but if you had chosen a full-coverage (no co-insurance) the same card would have been doubly as expensive (more or less, you got to see the quotes)

There are all sorts of limits, and some agents can highlight one and hiding the others.