Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

> Insurance Talk V6!, Everything about Insurance

views
     
tyenfei
post Yesterday, 12:35 PM

A Ku La Ma Tata
*******
Senior Member
2,092 posts

Joined: Jan 2006
From: K. L.


QUOTE(responsible poster @ May 25 2020, 12:10 PM)
hi guys, for life insurance i realised that the total payout is much cheaper for a 5 year plan instead of a 20-30 year old plan.

for example the yearly pay is higher on 5 years for example RM10k for 500k coverage, but RM4k for 20 years. however 10k for 5 years is only RM50k, while RM4k for 20 years is RM80k.

is it actually much more beneficial to get a shorter payment term?
*
If you taking RM500K sum assured for minimum 20 years coverage (sounds like GE SWP20 for me)
You have the options to pay by 5 years/ 10 years / 20 years.

System will calculate the annual premium need to sustain your coverage.
If you choose to pay 5 years, for sure annual premium higher.
If you choose to pay in 20 years, for sure annual premium can go lower.

The different will be the projection cash value by year 20th.

Then why paying 20 years total cost higher in your case?
One of the reason, waiver benefits. Insurer need to calculate the cost to cover your premium if waiver benefit kick in.

You can't count every single cent try to earn the maximum when deal with insurance against risk.
Understand the formula, choose within your conformable budget.

This post has been edited by tyenfei: Yesterday, 12:36 PM
GE-DavidK
post Yesterday, 12:38 PM

Getting Started
**
Junior Member
61 posts

Joined: Dec 2019


QUOTE(irving @ May 23 2020, 11:28 PM)
Hi there,

I am looking for Medical insurance for my dad.

Was quoted approx. RM8.3k with Life/TPD from Great Eastern. 990k annual limit with no lifetime limit. We didnt get to execute that because of MCO and his birthday just passed on May 2. Upon renewing the quote after his birthday(my dad is 65 this year) it has now risen to approx. RM13k annually which is a huge jump.

Life insurance/TPD is optional for me, medical is the priority. GE agent has quote me again approx. RM6k annually for medical only with the same 990k annual limit, no lifetime limit.

However seems that GE has the most negative claim experience so I am looking for options. Please PM!

Thanks
*
Using the information provided and only quoting for medical only, you can get a much lower premium. Maybe your agent quoted some life and CI coverage for your father as well.

QUOTE(irving @ May 25 2020, 12:02 AM)
Just doing some simple search on the forums:

https://forum.lowyat.net/index.php?showtopi...l=great+eastern

https://forum.lowyat.net/index.php?showtopi...l=great+eastern

https://forum.lowyat.net/topic/3123872/+100
I dont mean to undermine any GE agents just basing my opinion on what i've read. GE name seems to be coming up more than most
I am with Allianz now but my agent recently quit. So any Allianz agents out there do drop a PM please
*
GE claims have been ok for my clients as well so far. It's unfortunate that there are agents out there who are unaware of the fine prints before explaining to their clients. Non-invasive keyhole surgery or angioplasty is a common knowledge and only entitled for 10% of the critical illness coverage. As for the hospital bills such as surgeries and treatment costs incurred, it will be fully paid out.

QUOTE(jaredtay1994 @ May 25 2020, 10:45 AM)
Hi all, I am planning to get a life insurance with savings plan to maximise my tax relief. My friend recommended Great Eastern Flexi Plus. Do you guyz think it’s a good plan? Is there a better alternative? Thank you
*
Depends on what is your objective. You will need to pay for 20 years for Great Flexi Plus and the maturity is 30 years. You may consider Great Flexi Wealth which you can choose to pay for 5 or 10 years and maturity is 20 years.

Savings plan is good for:
1. Disciplined force savings
2. Low risk investment
3. Life insurance protection for accidental coverage

QUOTE(responsible poster @ May 25 2020, 12:10 PM)
hi guys, for life insurance i realised that the total payout is much cheaper for a 5 year plan instead of a 20-30 year old plan.

for example the yearly pay is higher on 5 years for example RM10k for 500k coverage, but RM4k for 20 years. however 10k for 5 years is only RM50k, while RM4k for 20 years is RM80k.

is it actually much more beneficial to get a shorter payment term?
*
Let me rephrase your statement to make it easier to understand:

Life: 500k
Payment Term: 5 Years
Annual Premium: 10k

Life: 500k
Payment Term: 20 Years
Annual Premium: 2k

Yes, you are correct. The shorter the payment term, the lower the premium is. This is because of the investment capital is larger in the first few years while the insurance charges is still low. Hence, the return on investment can cover for the sustainability of the policy. This is assuming the investment performance is up to benchmark. The waiver rider cost for a shorter payment term is lower as well, therefore the premium is cheaper for a shorter premium term.

This post has been edited by GE-DavidK: Yesterday, 12:40 PM
lifebalance
post Yesterday, 12:44 PM

Life & Mortgage Planner
*******
Senior Member
7,093 posts

Joined: Nov 2014
QUOTE(responsible poster @ May 25 2020, 12:10 PM)
hi guys, for life insurance i realised that the total payout is much cheaper for a 5 year plan instead of a 20-30 year old plan.

for example the yearly pay is higher on 5 years for example RM10k for 500k coverage, but RM4k for 20 years. however 10k for 5 years is only RM50k, while RM4k for 20 years is RM80k.

is it actually much more beneficial to get a shorter payment term?
*
It's not necessary cheaper.

By having your policy being paid off at a shorter period, due to the investment capital is received in a shorter period rather than little by little over the long term, you may potential gain a higher return due to that factor.

However, when such funds are put into an investment fund, it's always best to pay it on a monthly basis over the long term due to the averaging cost to mitigate the investment risk of fluctuation.
Holocene
post Yesterday, 01:53 PM

On my way
****
Senior Member
649 posts

Joined: Jun 2012


QUOTE(responsible poster @ May 25 2020, 12:10 PM)
hi guys, for life insurance i realised that the total payout is much cheaper for a 5 year plan instead of a 20-30 year old plan.

for example the yearly pay is higher on 5 years for example RM10k for 500k coverage, but RM4k for 20 years. however 10k for 5 years is only RM50k, while RM4k for 20 years is RM80k.

is it actually much more beneficial to get a shorter payment term?
*
Most likely your 20 year pay term policy premium can be lower.

Request agent to quote you the lowest premium for X number of years coverage for both payment term option. You can also request for the Sales Illustration and check out the Cost of Insurance, from there you can determine which is cheaper.

Which term you go for is entirely dependent on your financial situation.

Personally, I'd go for the longer payment term as I do not need to fork out so much money upfront. I prefer to pay as little as possible right now as this will give me more flexibility in what I do with my cash.

Remember, cash value is purely base on projection and it would be prudent to look at the lower scenario projection.

Best,
Jiansheng
ckdenion
post Yesterday, 01:59 PM

Financial Practitioner
*******
Senior Member
2,528 posts

Joined: Sep 2008
From: Wangsa Maju, KL



QUOTE(irving @ May 25 2020, 12:02 AM)
» Click to show Spoiler - click again to hide... «
hi Irving, true enough every company got "negative" feedback on claims and customer service. i wouldn't comment much on those that i read online because i'm not involved and not so sure exactly what happen in between. I'd dealt with claims from AIA, Allianz, HLA, GE, Prudential, Manulife and AXA. so far there is not hiccups on my side (certain cases is due to policyowner's complaint and feedback on their agents and the company). so long i know what exactly is happening, then things can be easily resolved.

anyway you can pm holocene. my good buddy from Allianz biggrin.gif

QUOTE(jaredtay1994 @ May 25 2020, 10:45 AM)
» Click to show Spoiler - click again to hide... «
hey Jared, you can use GE Flexi Plus to max out the life insurance portion for tax relief. it will be better to prioritize on life insurance first then only savings. one more alternative to max out is putting in PRS.

Life Insurance RM3,000
Medical Insurance RM3,000
PRS RM3,000

QUOTE(responsible poster @ May 25 2020, 12:10 PM)
hi guys, for life insurance i realised that the total payout is much cheaper for a 5 year plan instead of a 20-30 year old plan.

for example the yearly pay is higher on 5 years for example RM10k for 500k coverage, but RM4k for 20 years. however 10k for 5 years is only RM50k, while RM4k for 20 years is RM80k.

is it actually much more beneficial to get a shorter payment term?
*
for the 20 years plan, is it possible to make it RM2,500? in this case cant comment much because the premium can actually be adjusted (of course there is a minimum based on the coverage term sustainability).
Cyclopes
post Yesterday, 02:08 PM

Getting Started
**
Junior Member
151 posts

Joined: Mar 2011
From: Kuala Lumpur


QUOTE(jaredtay1994 @ May 25 2020, 10:45 AM)
Hi all, I am planning to get a life insurance with savings plan to maximise my tax relief. My friend recommended Great Eastern Flexi Plus. Do you guyz think it’s a good plan? Is there a better alternative? Thank you
*
Hi Jaredtay,

In addition to maximising tax relief, you can also consider insurance for your financial risk management. There are alternatives that can be considered, each having its own benefits.

25 Pages « < 23 24 25Top
 

Switch to:
| Lo-Fi Version
0.0225sec    0.49    6 queries    GZIP Disabled
Time is now: 26th May 2020 - 02:03 AM