The general advice is think 3 times before surrendering current policy.

It's usually not advantageous to buy new and surrender old ones. unless you buy online, sure, no commission then, you can change every year.

If buy via agent, initial expense is highest in the earliest years. when you buy a new policy, you incur the expense again.

medical card waiting period should be 30 days and 120 days. 30 days for most illness, 120 days for specific illnesses, you can lookup your contract.

but point here is dont simply surrender in the first place.

Perhaps agencies from the so called the best insurance companies can propose me with their best plan with best value.

main reason why I don't recommend you to surrender that policy is because of its 100% allocation even from the 1st year of the policy. unless it is a super obsolete medical plan. if you are looking to top up your life insurance and CI coverage, you can top up to that plan.

I opted to pay monthly. So wasted.some.money is ok in order to exchange better value product

I wouldn't say it's wasted, could be viewed as cutting losses sometimes.

This post has been edited by lifebalance: Oct 22 2020, 01:56 PM

Hi Sifu, my wife is looking for a upgrade from her existing insurance.

Her existing insurance is from Prudential as below:
Death Benefits - RM20K
Crisis Shield Plus - RM30K
Accidental Death & Disablement - RM50K
Accident Medical Reimbursement - RM2K

PHL 150:
- R&B - 150
- Annual Limit: RM62,500
- Lifetime Limit: RM625,000
- Term of Coverage: 70 years old

Total Monthly Premium: RM210.78
Total Annual Premium: RM2,529.36

I would like to know your opinions on both of these policies:

37F non-smoker Class 1

Prudential -
Death and Disability - RM50K
Crisis Shield Plus - RM50K
Accident Death and Disablement - RM50K
Accident Medical Reimbursement - RM2K

PRUmillion med 200:
- R&B - 200 (Deductible: RM300)
- Annual Limit: 1.38 mil
- Lifetime Limit: no limit
- Term of Coverage: 80 years old

Total Monthly Premium: RM320
Total Annual Premium: RM3,840

Allianz
Life/TPD - RM50K
Critcal Illness - RM50K (Covered 77 Critical Illness)
Personal Accident - RM50K

Medical Card : Plan 200
- R&B - 200
- Annual Limit: 1.5 mil
- Lifetime Limit: no limit
- Term of Coverage: 100 years old
Waiver of Premium: Yes

Total Monthly Premium: RM300
Total Annual Premium: RM3,600

Thanks

This post has been edited by kienloon: Oct 17 2020, 05:34 PM

What's your consideration?

I am looking to upgrade to 1mil Annual Limit & lifetime no limit.
But Prudential only cover up to 80 years old, is it enough?
And then I don't know the sustainability, normally how many years?

hi kienloon, just need to make sure both plans with such coverage can reach up to at least 80 years old. check the sustainability clause in the proposal illustration. both plans are very similar in terms of benefits. which is your pick?

I don't think the Allianz policy is term until 100 for that premium, so check again on the terms from the agent.

With that being said, Pru should be cheaper after the adjustments.

As for until 80, it's more than sufficient. Just top up in the future if you feel that it's not enough

Medical card cover up to 80 years old is enough? I saw some cover up to 90 years old and 100 years old.
If I upgrade from Prudential is it no need to pay both premium for a year?

Prudential policy can be until 100 years as well. What I'm talking about is the premium payable and sustainability of the policy.

The term of coverage is until 100, but the premium you're paying at 300 can only last you until 80 years old. It'll be triple the amount if you want to really last till 100

Oooh, Allianz agent told me the sustainability of the policy (RM300) is until 63 years old. After that might need to top-up premium.
But when we asked Prudential, he says can last until 80 years old no need to top up which I quite doubt.

Since both policies are similar, is it more advisable to go for the same provider to avoid paying both providers for a year?

Already told you Allianz won't be so cheap. Cause I sell both of this companies I know.

If you're comparing on price paid for benefits, Prudential will be cheaper unless you're willing to fork out the extra premium for it.

This post has been edited by lifebalance: Oct 17 2020, 06:39 PM

Coverage will be till Age 100 for most policies, but some only wants coverage sustain to a lower age, example Age 80.

I believe all upgrades will require premium from Day 1, just than some insurer may have promotions, which can be premium free for X months.

Like that I will just upgrading Prudential for policy RM320 based on your advise, thanks.

Cheers you're welcome

yea, so you need to differentiate between coverage term and sustainability. medical card now mostly has coverage until 100 years old but the plan may not be able to sustain up to xx years old. so check the proposal illustration to be safe.

Thank, I will check with the agent again.

Bolded the important statement for your own benefit.

Try checking if there are other ways to upgrade on your existing policy before you jump to buying a new policy