age 68... likely another jump in 1 or 2 years time. age 70 probably another hike increase in rates because you may have crossed the age band. but crossing age band is a normal hike. so the 5.8k may have factored in this already.

the hike that is informed to you by Pru via this letter, is the "abnormal" hike or what they call revise/reprice of medical product. Usually they will send you a letter and start with "healthcare cost have been consistently rising...", (someone who kena also send me a copy of the letter) and please pay the revised premium and new premium is RMxxx, effective this date. this is expected to happen every 2 to 3 years (word of mouth in the insurance industry)

So option
1) Continue to pay RM5,100. In this scenario, the cash value will be used "more" to sustain the deduction of the new increased charges of your PMM3.

You mentioned you do not want to touch the funds but the idea of this policy IS that you have paid more upfront in the past so that at times like this, you can have some flexibility of paying less due to affordability issues (especially covid now, other people got no job ma).

so chances are in this situation, your cash value may decrease (or decrease faster) but that's just how things work. even if you increase your premium, your cash value may still decrease but at a slower rate.

2) option 1 but reduce some other benefit that can be removed. example, weekly indemnity (your mother not working jor, so maybe just delete, save few ringgit also good). weekly indemnity got provide coverage to your mother it's just that usually marketed for working people when they lose income due to can't work because of accident. ADD, can still ok can keep. AMR, can save few ringgit also i guess, erm, it's when if your mother fall down, visit clinic can claim because medical card dont cover out-patient).

The 40,000 under Pru Assurance, maybe can reduce. that one is death/disability coverage.

3) pay the RM5.8k. This does not mean it wont increase or you dont need to top up in later years, merely a projection to last until age 80 (i assume is the term for your mother's policy)

4) cancel and hope your mother stay healthy (i have been contemplating this option but no guts to do so)

PS: Option 2 is recommended very general based on an average woman of 68 retired and these insurance coverage dont really make a huge difference to her finances (except for the medical) and her children can sponsor few thousand when needed and her children not relying on her as the main income earner anymore or ever in the past. Hope dont take my recommendation as bible.

PS side note: if you feel like want to screw this agent, can complaint to Prudential about this agent. actually he get commission when you increase from 5100 to 5800 also, even though the amount is very small but it's still money. maybe not enough to pay petrol for their BMW kut.

This post has been edited by adele123: Oct 13 2020, 12:25 AM

If you're looking to revise the premium, I would recommend a standalone medical card maybe?

Room 250
Annual Limit 300k
No deductible/co-insurance
Age 68 - Yearly Premium 3,000

Yes I will do that if the agent did not come to visit us in a month's time

Since the letter mentioned the new premium will only have to be paid in December 2021, December 2020 will still be at existing premium I guess I can still wait until at least mid 2021 to visit the office hopefully after COVID-19 subsides

No worry, I will decide with reference to your info but finally it will be my recommendation / responsibility with her decision / consent, no we are not relying on her for income but in the past before we started work yes

We still can share her premium now but it sounds like no ending if every few years they jsut send a letter telling you a 15% hike like how are we gonna absorb that

Back to the letter, it was like what you mentioned that they said the hike is due to increase in medical cost, the same old story as the previous hikes

Option 1 you mentioned even if you increase your premium, your cash value may still decrease but at a slower rate. but I thought it was as simple as units of unit trust bought x unit price, or you are referring to the rate of increase after each premium might not be in par due to allocation?

Option 2 maybe the weekly indemnity but let's see how much will eb the impact to the premium. AMR will keep as with her CI touch wood she tend to fall

RM40k PRULink Assurance Plan, from the wording I guess it is only claimable due to natural death and illness disablement. But the difference with ADD? One is natural cause one is accident?

The letter also have a table of projection and it shows the amount will be like RM7k++ at age of 70+, means they will revise the premium towards RM7k++ according to the schedule?

To surrender the policy will be an option after 70yo but in this case we "rugi" because the PMM3 and Enhancer that we paid years before had already factored in additional $$$ for 70 - 80yo I believe?

We are following up at Gov facility for her CI and it was zero medical cost to date. Earlier we were with a private specialist but all he did was no difference with Gov Hospital, which is by using drugs to control & reduce the symtoms

Wonder if we could remove the agent totally as I was doing all the job even during her TKR surgery time. Of course the claim for surgery was submitted by the hospital but pre / post claim was submitted by me but luckily the staff at Prudential office filled the form herself for us. Thank goodness the office is not too far from me

Thanks a lot for your time

Honestly I do not think we need Room @ RM250 as her recent TKR staying at twin sharing was not even reaching RM100/day

However, since she is diagnosed with CI now I do not think RM3k will be the premium and again the premium might also be increased in future with just a letter away

Nevertheless, thanks for your info

This post has been edited by coolguy_0925: Oct 13 2020, 06:20 AM

i dont have the full letter myself so i have to guess certain aspect and just explain the concept for you

Option 1 you mentioned even if you increase your premium, your cash value may still decrease but at a slower rate. but I thought it was as simple as units of unit trust bought x unit price, or you are referring to the rate of increase after each premium might not be in par due to allocation?

Example, if you pay RM5100 but your charges is RM6000, then it decreases by RM900 every year, assuming unit trust make 0% return for the year

If you increase to RM5800 but your charges is RM6000, then it decreases by RM200 every year. Of course there is a possible scenario that you pay RM5100, charges is now RM5700, which is why they ask you to pay RM5800. I would not know which scenario it is, so this is a generalised explanation of it.

The table of projection is probably mentioning that even though the charges is only RM6000 now, it will rise up to RM7000 because she is getting older. but this RM7000 excludes future repricing exercise which can possibly happen again in another 3 years. This RM7000 assume things stay the same, purely her getting older.

To surrender the policy will be an option after 70yo but in this case we "rugi" because the PMM3 and Enhancer that we paid years before had already factored in additional $$$ for 70 - 80yo I believe?

this part abit harder to explain, i try my best but really hard when can't draw. you pay more upfront is abit like menabung. it creates some money that you now call the cash value. if you surrender now (or at age 70), you get whatever that is the cash value. if you dont increase your premium, the cash value will be used for future deduction of charges of PMM3. so you can't say what you have paid caters for later ages. the charges for PMM3 not charged yet for later years. this is a "menabung" feature from Prudential.

supplementary reading from previous post

Prulink assurance is 40k, death / TPD only. ADD is 50k. if normal death, get 40k. if accidental death get 40k + 50k.

Weird that in your previous post you've mentioned that your mom has no pre-existing illness but over here you're talking about her claiming for some CI.

Which is which ?

Then again if she is diagnosed with any illness at the moment, you have no other choice but to stick on this one and only insurance plan. Whether it's still worth keeping it or self insure yourself is the next question.

Hi sifus, may i know what is the benefit for a young adult (25 to 30) to buy medical coverage till 80 yo instead of 60 yo?

Was told by one agent to go for coverage till 60 would be enough, as you are entitled to renewing anyway at 60yo, as long as you can handle the premiums.

You don't have to top up an exorbitant amount when it comes to 60 years old later to 80 years old.



This post has been edited by lifebalance: Oct 13 2020, 11:33 AM

Though you pay a higher premium, you are only charged the current Cost of Insurance, the balance sits as Cash Value. Thus no 'rugi;' just that like Unit Trust, the value of your units goes up/down based on Fund performance.


You will have less 'buffer' after you reach age 60 to sustain the policy if you opt for age 60. You may have to top up a higher amount if you want to keep the policy after age 60.

This post has been edited by Cyclopes: Oct 13 2020, 12:05 PM

just asking for knowledge,...
will it be lower cost to pay now, if for a young adult (25 to 30) to buy medical coverage till 60 yo instead of 80 yo?
if yes roughly how many % lower compared to 80 yo?

Yes, you will be paying a lower amount now. Can't comment on the % off hand.

estimate? agar agar will it be about 20%?

Very subjective, depends on coverage amount and types of coverage.

Okay so the table of projection is showing the COI that they are going to charge us every year which you used RM6,000 as an example in your explanation?

If so even if they do not increase our premium, like assuming the letter was not sent to us and allow us to keep paying RM5,100 continunously they will still deduct the shortfall from our fund? In this case, the fund units will decreased accordingly as unit price cannot be adjusted?

On part [b] I think I get what you are trying to say now. Meaning any excess we paid earlier was converted into the unit trust fund, right?

No illness when she bought the policy 15y ago, that was what you asked

Only diagnosed with CI like > 10y after the policy which was ~2 or 3 years ago

Okay thanks for the clarification, that sounds fair

i got the same letter/notification. but the policy is for myself. increment of 10% from the previous annual amount. bought this policy with 2.4k, then upgrade to 3k becuz of the extra benefit like coverage till 100 yo and 1mil claim per year. next year going to be 3.3k per annum.

their reasoning is that medical cost increased. if we maintain the amount, they will cut it from investment fund in the policy itself. so when policy mature that time the investment fund will have lesser amount.

my wife bought her medical from AIA and her policy should remain the same through the years by using the investment fund to cover the insurance premium. i initially also heard this from my prudential agent, looks like prudential want us to fork out more money in order to maintain the fund in investment.

it is normal for insurance companies to exercise increase in premium when it comes to medical coverage as it's one of the expensive item to maintain overtime. Hence LIAM is looking into how to curb such issue.

Alternatively if you would like to pay a lower premium, you may opt into deductible plans

This post has been edited by lifebalance: Oct 13 2020, 01:19 PM

So will Yr wife's aia policy will have the problem like Yr prudential policy's where if they take out the money from the investment fund to pay for the increases... Then in later yrs it may not be sustainable?

so far her policy still maintain the same premium whether AIA will revise it or not that is still unknown. my premium is still the same until next year onwards. I looked at the projection of the insurance premium, looks like they will adjust each 5 years as you get older. 76 yo will jump to more than 10k already for my case.

Will there be any more increases during the 5 yrs after having reached a higher age bracket?
Seem likely they can still increase the premium even after one had just reached a certain age bracket.
Possibly looks likely alot more than projected 10k when reaching 76 yo.

This post has been edited by MUM: Oct 13 2020, 01:56 PM

yes, they actually can, and i just found out they can do so after receive the notice.

The issue is even it said it covers until 100 but they can increase anytime in between. This really confused me. Then what kind of promise is that for covering us until 80, 90 or even 100? Whenever the cost increase they just said cannot sustain and please top up

Anyway, your RM3k for RM1mil annual limit sounds good for me but what is the lifetime limit? THe premium is only for medical or incl of others like CI, PA? And you bought at your 20s?

My own was started at RM1.5k and now slowly they increased to RM2k but the limit is only like RM200k lifetime but included crisis shield and accident