Yes inflation is perfectly fine and fair.

It is the insurance agents that either aren't well-trained to tell the client the fact, or just don't want to tell the client the fact. This is the irritating part.

Problem is in the actuarial calculation in arriving to medical premium. I bet you don't know that, lifebalance.
I believe you are not that open to your client too when you explain "you can get RMxx,xxx by 60 years old"

This post has been edited by kbandito: Jul 6 2021, 09:43 AM

The problem to all this is the scams carried out by the private hospitals.

Try this out:

Next time you pay by your insurance, ask for the cost compared with settling by cash or CC.

Look at the enormous difference.

That is the main reason why the medical insurance premiums are escalating.

Happily to be participated by the insurance companies and some existing policy holders...

don't be quick to assume everyone in the financial industry is just filled with incompetent advisors / agent.

And what makes you think I'm an insurance agent?

I don't think you know me much enough to give your generalized comment. Why do I say so ?
1. Do you have any evidence that I don't explain "you can get RMxx,xxx by 60 years old"?
2. Are you my current client?
3. Have you engaged for any consultation with me?

If all the answer to the above is No. Then you have no rights to judge or generalize me to your likes (just because you can remain anonymous online behind that computer screen). Sorry I just can't take someone insulting my profession too lightly. Just imagine I demean your profession/career by being a lowlife scam by generalizing everyone in your line of work. You wouldn't like it right? then don't do it unto others.


You say "Inflation is perfectly fine and fair" when you were just shooting down on insurance future cash value.


and your argument is "It is the insurance agents that either aren't well-trained to tell the client the fact, or just don't want to tell the client the fact. This is the irritating part."

I don't see how the relevancy is between insurance agents - not telling the truth links with inflation.

You might as well say "The bank is not truthful as well", do they tell you about the inflation when you bank in your fixed deposit ?

Do you think property agent talk to you about inflation? Oh the property you buy now, 10 years later, after inflation, actually you don't earn much + paying loan interest.

Do you expect your stock market agent or platform to tell you after inflation, actually your annualized return is only so much ?

You might as well say car salesman are the worse liar ? do they tell you, the car depreciates every year, on top of that, your car value after 7 years later with inflation is worth peanuts?

Let me summarize what I'm trying to say, you're buying the insurance policy today for the protection it gives you in the event of Death, Disability, Accident, Medical.

They offer you the product for Term policy or Investment Linked Policy. Neither one is better than the other, each of these plans serve their own purpose depending on your requirement.

Going back to this thread's topic on increase in premium/cost. Every goods & services are subject to change in their charges. (Unless STATED GUARANTEED). The purpose that such projection is given is to give you an estimate (Thus it's called PROJECTION). It's also stated clearly within your insurance policy that the cost of insurance may subject to changes. (UNLESS STATED OTHERWISE).

You may refer to my AMA on Life Insurance - https://forum.lowyat.net/index.php?showtopic=5163007&hl=

I've posted some of the reasons & how you can help to maintain the inflation cost low.

Poor and M40 can only choose either ONE unless you are those T20 who can pour out much more additional money into insurance

It has been stated very clearly that Insurance agent will take a commission of more than 100% of your annual insurance fees. so when will you investment start? at the 3rd year perhaps for most case.

buy what you need, not what those agent promise of nice returns once it mature

besides inflation, you probably may need to factor in ringgit depreciation too

Insurance product are affordable across the different income groups.

Premiums ranging from RM20 - RM300 monthly for starters is easily affordable with variety of plans provided out there.

If you can't even spend RM20 on insurance then perhaps something is wrong with your personal cash flow that needs adjustment. - Yes, talk about being able to afford Motor Insurance (I'm sure any adult in Malaysia would easily own at least a basic Motorbike/Car), they don't even want to spend RM20 for their healthcare. (Poor mentality).

Insurance savings plan is meant to lock in the money for a long period of time while it provides you with a fixed income over the long term.

If you are the person that ONLY wants:
1. High return
2. Risk Taker
3. Not Long Term
4. Growing your capital

Then putting your money in insurance is not for you.

But if you're looking for long term - stable income - pass on to your next generation - low risk taker - capital preservation

Then insurance product is for you.

Most people don’t understand the purpose of ILP and think that it’s the best thing since white bread.

Rule of thumb, contribute just enough for the policy to sustain X number of years as per your needs. When the COI/premium increases, just pay accordingly.

Using ILP as an investment vehicle could be one of the worst financial decision an individual can make.

At the end of the day, it is your luck what kind of agent you meet. Such is everything in life.

Best,
Jiansheng

If insurers were to market their product mainly on protections instead of returns link, there will be less confusions in the market place to many of those less savvy about investments.

Until today, insurer cannot remove the taboo of death related to insurance policy and use 'investment' term to cover for it.

No doubt, today many informed and educated insured understand about insurance but not many understand the link part which is not explain clearly during the proposal stage.

That is why after sometime, many insured questions about the link benefits of a policy.

Is as simple to a layman that if a fund raiser invite a person to invest, it is 'expected' of him to generate returns. If he has to take risk with him, why bother to put money into his fund ?

Similarly to saving money in a bank. Can one imagine those depositors of Ambank having to share the risk of paying over a billion to the govt in MDB case.

Similarly to a IPO, no investors would want to dump in money if figures cannot convinced them.

The over emphasized of the investment and 'take back money if insured dont die or when old' part that cause many wrong perceptions to the general public.

Insurance is about PROTECTION and NEVER an investment.

For all insurance agents here, why not telling us how much commission you are getting for each policy you are selling ?

it's transparent. Stated in the policy. 45% of premium paid for first year and gradually reduce until the 6th year.
i think they share it among the team usually.

Even before you pay your 1st premium, the commission payable to the agent is transparently stated in the sales illustration.

So directly paying by medical card instead of reimbursement method(you pay out of pocket yourself then claim later from insurance) is more expensive?
Didn’t know that we can ask for cost of both(self payment vs medical card)
1 observation that I saw from my itemised billing
1. Registration fees seems higher compared to usual outpatient consultation
2. There are discounts on certain items except doctor fees

45 % ?. For my case I believe it was not written in the policy and my agent did not tell me during the sales illustration.

This post has been edited by Kanelam: Jul 14 2021, 12:39 AM

If not asked , they wont reveal it right ?

if it was in the policy,...it will be revealed there for you to see, review the full details of it and decide if you want to agree with it.
if you don't like it you have 15 days to return it without need to give any reason.

i am sure the agent would have told you about the rate if you ask him/her during the sales illustration pitch to you.

in 2014, it was published in the paper as
"The current commission structure in Malaysia is capped at 171% payable over six years for traditional insurance plans and 160% payable over the same period for investment-linked insurance products. Of the 171%, 110% goes to agent as basic commission and the balance for unit and district managers, etc."
in that article, it mentioned that commission rate were expected to change "“Discussions are still ongoing on the matter between the industry and the central bank,” said an industry official." ....(now 7 years later,...the rate should be different now)

mentioned too in that article for comparison: “For example, in Singapore the authorities have capped the commission of agents to a maximum 150%.
https://www.thestar.com.my/business/busines...n-line-with-ot/


Commissions on insurance products to be disclosed
The Editor/TheEdge
April 13, 2010
https://www.theedgemarkets.com/article/comm...ts-be-disclosed

"consumers will be told of the commissions they have to pay on most insurance products they intend to purchase.
The new ruling covers investment-linked insurance products and investment-linked takaful products, including any riders attached to the policies/certificates, general insurance/takaful, standalone medical and health insurance/takaful and group medical and health insurance/takaful."

This post has been edited by MUM: Jul 14 2021, 01:32 AM

This was related to me by my insurance agent!

His client was charrged Rm20k for some procedure by medical card.
After, he asked to pay by cash, the bill came to Rm9k! i think its the hospital charges which are exhorbitant, not that of the specialists.

Why would an insured pay cash instead of through medical card ? I dont see the connection of the 11k difference savings which the insured can take home and spend.

11k ? .... I dont think it will be that big difference. If total bill above 100k, I can understand the discount.

Upon claim by medical card, how much would the premium cost for next year? It's that worthy for the 11k saved?