Hi cofin, I did a similar quotation. For your budget, you can get a pretty comprehensive coverage for your medical card which covers up to 90 years old. Whether or not your agent kelong you, I will need to have a look at your policy. One of the important fine prints in the policy is the sustainability factor. Usually in some insurance companies, they can quote a policy with low premium because their sustainability is low and policy holders will get surprise price hike when their cash value reaches 0.

Hi gooroojee, any outpatients (normal clinic visits without overnight in hospital) is not claimable under medical card unless the reason is caused by accident. Usually, for normal clinic visit, some companies you work for do offer panel clinic which you can claim under your company medical benefits.

1. Accident during riding motorbike without hospitalisation can claim under medical card. The maximum claimable amount is usually around RM3,000 in this scenario.

2. Yes, claimable. As long as admitted to hospital and stayed overnight. Any treatment within 90 days after hospitalisation is also claimable.

Interesting. That means you have 2 policies which function as income replacement/debt cancellation.

Total life/TPD: 800k
Critical Illness: 400k

I would say you are quite good in coverage if there is anything happen to you from now on. Do you happen to have family/loans which is the reason why you bought these policies?

Hi WeiLoonChuak, hmm, I'm a Great Eastern agent myself and I don't think that the annual medical coverage limit will increase by 10% every 3 years if there is no claim.

I believe it refers to another rider which increases the Room & Board by 10% every 3 years instead of increasing your annual medical coverage limit. Also, R&B RM150 per night is not eligible for this rider. I strongly advise to discuss this with your agent on this respect since there might be some misunderstanding. Or you may send me your policy summary for a review.

For your second policy, which functions as a income replacement/debt cancellation, I think it is alright. However, I usually quote 500k for life and 500k for critical illness. For Great Eastern SPLM policy, I don't think that Critical Illness is deductible from Life/TPD. Life and CI are independent of each other in this policy for GE.

Later leng lui agent kelong u kao kao oh

Usually you won't go wrong with the big 3 giants in insurance, i.e Great Eastern, AIA and Prudential. It depends on the agents because many agents simply don't understand their clients needs and the products well enough.

Great Eastern RM200 per month can be quoted for a comprehensive medical card with early stage CI included.

Sounds like you had a bad experience with insurance agents. Not all agents carry the intention to scam people.

I see. Without basic protection, you might need to fork out hefty medical fees (if anything happens to you) or buy even more expensive plans for yourself in the future.

If every month you are able to save around RM300, it’s better to buy yourself the most basic form of protection, i.e. medical card.

You need to know that the purpose of insurance mainly is for protection. The idea of getting returns on investment linked products is a wrong concept to begin with.

Also, eventually all cash value in ILP will become zero due to increasing insurance charges. How fast it goes to zero depends on the sustainability of the policy which is designed by your agent.

As for your case on why the cash value is not up to par, I suspect that 1) your agent designed a maximum protection policy for you, hence a lower portion for investment, 2) the fund performance of the insurance company is not doing well, 3) sustainability is too low, your premium of RM200 is not sufficient to cover the insurance charges, hence the cash in your ILP is used to cover the remaining cost.

Standalone medical card we usually propose to clients who have really low budget or already too old. In such medical card, there will be no life/TPD, no CI and no cash value. Clients will have to fork out another few hundred in the future to buy a life/CI insurance for this purpose. But if using ILP, at least you are getting a protection of everything included.

Co-insurance is something agents would propose to clients who are old with super limited budget. This is because in the future when clients need to do claims from hospital will get shocked by co-insurance bills and expected everything to be free.

I see. They are very good plans and you are very well protected if anything happens. You can use the money to get treated in the best hospitals in the world if you want to.

Hi Liamness, the plan you mentioned I believe it's a standalone medical card. GE also has such plans and can be done less than RM100 a month depending on age per individual with much higher annual limit. As argued above, agents won't usually propose such plans because the protection is just inadequate for today's individual needs.

The performance of unit trusts also depends on the type of unit trusts you bought. Some unit trusts are higher risk than others, (eg equity fund) and hence more volatile. There are agents who would opt for the highest risk unit trust without telling the client because they can quote a lower premium and close the deal.

Not necessarily same rate. Standalone medical card will increase price every 5 years.

Yes. Cash value for no matter which ILP from any insurance company will become 0 in the end. If the sustainability is high, that means the price hike will only come at 80 years old instead of 60 years old. Which is why cheaper insurance doesn't necessarily mean a good thing for the client. The client will have to pay for the difference in the end.

The cheapest standalone medical card for 70 years old, with 90k annual limit and no lifetime limit, is RM5k per year. For the next 5 years, it would be RM7.5k per year. And for the subsequent 5 years, it would be 11k per year. So this is how standalone medical card works without ILP. You can do the maths if the person continues to live.

This is why insurance is something a person must buy whenever is able to at the youngest age (Only applies to ILP due to compound interest in cash value).

It's true that GE doesn't have a family package. I believe the rationale behind this is that different people have different needs at different life stages. Some prefer to get more protection, some less.

Based on the AXA eMedic fact sheet, I think it's a great standalone medical card for its price. However, looking at the inflation rate in medical industry which is more than 10% every year, RM100k/year is not going to be sufficient for serious illnesses. GE can do the very same standalone card for less than RM100 per month for an individual but with 1.2 mil annual limit and no lifetime limit.

As for the inadequacy of a standalone medical card, I would say that it doesn't come with any life/TPD/CI coverage. If you happened to die in an accident, or you managed stay healthy up to old age without having the need to visit a hospital, the premium you paid for standalone medical card is wasted. At least with ILP, you are getting your sum assured back if you get CI or you can pass the money to your next of kin if you pass away.

I am just trying to explain, considering the number of misconceptions about insurance in this thread.

For the performance of unit trust, it's dependent on the type of unit trust. If the client cannot accept high risk with volatile returns, I would advise to go for a fixed income fund which is the most stable of all.

Yes, ILP will become 0 in the end to prevent the premium from increasing a few thousand RM every 5 years like the illustration above about standalone medical card. Because it is investment-based, it comes with flexibility that you can choose to withdraw some of the money if you have any emergency needs but for standalone, you must continue to pay whether you like it or not.

I have read the AXA eMedic fact sheet. The 49 years old refers to the age limit who can buy this policy. Any older than 49 will have to opt for other policies. AXA eMedic covers up to 80 years old only.

1 mil is usually the recommended annual limit nowadays. It is meant for future protection as medical inflation is increasing every year by at least 10%. Also, for cancer treatments it can go up to 400k for treatment. At least you will know that you have exhausted all the available options to survive if you had the right insurance. If only 100k, means you are choosing inferior medicine for yourself because of budget problems.

Yes. Thats the advantage of investment link. If a person bought a standalone at age 26, the premium per month is easily less than RM100 per month. But at age 70, it would skyrocket to RM1k per month. Also you won't be getting death benefit or any investment returns in standalone.

Yes it can be done. Refer to your agent to upgrade your policy.