As you mentioned, insurance is for protection, not investment. Life insurance is a form of protection as well, so there is no need to reduce the life insurance portion.

There are some benefits to have some form of life insurance:

1. Life insurance money will not be frozen and will be passed to your beneficiaries for use immediately.
2. Using small periodical payments to exchange for large payout.
3. Considering you are just age 35, life insurance is to make sure that your family can maintain the same standard of living (daily expenses, children's education fund, parents' expenses, etc) if you were to pass away tomorrow.
3. Rule of thumb is to have life insurance coverage 10 times your annual income.

Looking at your policies in medical card as well as GETC (without looking at the sum assured), it looks like you are covered quite well in terms of medical insurance as well as critical illness.

Yes you can do so buying multiple life insurance. Take note that online life insurance sometimes have different length of coverage. If you are looking for cash value return, you can look at investment-linked policies where the coverage can be extended to whole life.

I wouldn't advise to go for 10 times annual income life insurance at one go. It would be more balanced to increase life insurance as well as critical illness coverage to improve your protection from all angles.

Medical term insurance or standalone medical does not come with any life/critical illness coverage. It only covers for hospital bills. You will need to get separate policies for life/critical illness in this case. Standalone medical insurance tend to be cheaper in the short run but the premium will also increase according to age every 5 years.

For your first insurance policy, I would advise getting ILP medical insurance because the coverage is more comprehensive. Think of it as an all in one package including life, critical illness and medical. You can choose the coverage up to age 70 or up to age 90 depending on the budget.

Yes, this is usually referred to as Total Permanent Disability (TPD) or critical illness (CI) coverage. The benefits are usually paid in one lump sum to you as cash.

For CI coverage, ideal amount is to be 5 times your annual income to cover for approximately 5 years of annual expenses to recover from illnesses and get back to the workforce.

RM360 premium for your age is definitely on the high side. I will try to sum up your Prudential benefits as below:

Life: 100k
Critical Illness: 100k
Room & Board: RM300
Annual Limit: RM1.5 million with RM300 deductible
Waiver Rider

Any Prudential sifu, please correct me if I am wrong.

I think the reason for the expensive premium is probably due to your smoker status and the coverage is up to age 100.

Get medical insurance with a bit of life, critical illness and waiver coverage. Make sure the length of coverage and sustainability of the policy is up to the age you are comfortable with.

To answer your question, the medical card will pay for your consultation, treatment and tests when you are admitted to the panel hospital. In another example, if the result of the consultation does not require any further treatment, surgeries or hospitalisation, you will need to pay for the consultation by yourself.

To sum it up, medical insurance is used for the following 3 purposes:

1) Accidents treatment
2) Hospitalisation
3) Surgeries or Outpatient Treatment

Difference in the insurance companies are generally the same. Like you mentioned, the length of coverage for the policies can be different. You will need to look for whether waiver is included and whether you are comfortable with the projected sustainability of the policy.

I would advise you to add critical illness coverage to balance your protection portfolio considering you have a large budget for insurance.

$100 per month is in RM and the premium remains the same for 40 years?

If this is true, then it is a really good deal for 1M life and 300k CI. For ILP, it will take about RM400 a month for such benefits.

The medical checkup is to ensure that the person does not have any pre-existing conditions and have a smooth claim process in the process. The insurance company just want to have confirmation from the doctor side that the person is low intellectual in terms of IQ, rather than mental disorder or deterioration of mental capacity which could lead to Alzheimer's Disease.

As for whether the premium is expensive, we will need to look at the benefits of the policy and the monthly premium as well as the person's age.

I do have a client who has 1M insured by paying RM100 monthly (term insurance) who has similar age as you. However, he didn't know that the plan is yearly renewable which means that the plan will increase premium every year, so it's better for you to check on the premium schedule to set the expectations right. As for ILP, the premium will stay leveled and there is cash value at the end of the maturity depending on the design of the policy.

The rule of thumb is to have life insurance 10 times your annual income. In the future, if you are planning not to get married or have children, I would say that 1M is definitely on the high side, unless your objective is to leave this sum of money to your parents.

Having a higher critical illness coverage might be more suitable for you if you have no dependents and CI coverage is paid to you as cash lump sum if you are diagnosed with critical illness.

There are many ways to do this. Depending on your needs.

Do you only want to cover your most important years, i.e. working age up to age 55? Or you want to build an inheritance for your next of kin, then you should go for whole life. Of course, whole life's premium will be more expensive than the term coverage.

The next question to ask, is whether you want to go for term insurance (traditional) or investment-linked. Term insurance can be slightly cheaper now but the premium will increase according to age (some term insurance will stay leveled). Investment-linked will stay fixed until the sustainability runs out and has cash value to withdraw anytime.

1. For premium of RM200 per month, with 990k yearly and 50k life/CI, it is very unlikely that the sustainability can last until age 100. My estimation based on my experience is that the sustainability for your policy is around age 70 or even less due to the recent medical repricing.

What you are seeing is that the policy can last until age 100, it is probably the length of coverage of your policy. For Great Eastern, it is most likely to be age 90 with auto extension rather than age 100.


2. The projection is not guaranteed. There is a best case scenario (Y) and worst case scenario (X). It not guaranteed and the market can perform better than Y or worse than X.

You should be able to find the projection at your policy copy. At the page with the projected investment value for each year up to age 90 ++.

This post has been edited by GE-DavidK: Jun 30 2020, 04:05 PM

RM150 monthly for 500k coverage is extremely cheap, for a whole life policy it would cost at least RM200 per month for a person who are in their early twenties and this is with investment-linked.

My guess is that your policy could either be:

1. Investment-linked policy with 20 year coverage
2. Or, it is simply a traditional policy (without investment-linked)

Do you know what is the name of your life policy?

Personal accident will only pay due to accidental causes (Fell down, car accidents, etc.). Non-accidental causes like illness, stroke, cancer, you won't be able to claim under personal accident insurance.

Yes, you can increase the life insurance amount in your policy in the future or get another life insurance policy separately. This is assuming you remain healthy in the future.

CI will be paid upon diagnosis of CI. For Great Eastern, the survival period is 14 days, which means upon diagnosis of CI, you will need to survive for 14 days then only the CI will be paid to you.

For female specific illnesses such as facial/breast reconstructive surgery due to accidents, pregnancy/infant related complications, you may add this separately to your medical policy. This type of female specific illnesses are not covered under the normal medical insurance. Cancers such as breast cancer will still be covered under the normal medical insurance.

This is a medical card for your daughter. The policy benefits looks ok to me for the premium you are paying. You are getting very small investment return because I believe the policy is designed with maximum benefits rather than investment due to the low premium of RM190.

To sum up, the benefits of your daughter's policy is as below:

Life: 50k
CI: 50k
Child Specific Illness: 50k
Personal Accident: 50k
Room & Board: RM200 per day

Very likely the life, CI and child specific illness are sharing the same 50k. Will need to check the policy to confirm.

As for whether it is advisable to terminate this policy and get a new one, you might need to increase the premium to get the same benefits or downgrade the benefits for the same premium. Some insurance company does have a larger requirement to invest more of the premium in the investment to ensure the sustainability can last longer.

This post has been edited by GE-DavidK: Jul 2 2020, 03:36 PM

I would say decide on which agent is serving you better and provide a more professional service. You can compare on the fund performance between the two companies as well.

My estimation for both policies are around age 50 which is a bit short due to the large benefits for low premium. This means that the premium will increase once the sustainability runs out. I advise you to check with your agents regarding the sustainability.

Like lifebalance said, it's better to have sustainability of the policy to be projected until age 70 ++ which is the average life expectancy.

Some insurance companies allow their policies to have a shorter sustainability at around age 50 with a much larger benefits. So if you prefer more benefits and willing to pay more at around age 50, then you can go for a shorter sustainability.

For annual premium, the policy must have RM3,600 annual premium and the policy must be in force before 31 July 2020. Also, only selected policy products like SPE3, SPJ, SPLM, SPW20 and SPS are qualified for this 5% cashback promotion.

To check whether your policy is in force, you can check with your agent and the agent has access with the GE internal system. If you have no medical problems, then the policy should be in force in less than a week.

May I know which policy are you getting?

For GE, the premium is RM450 per month with projected sustainability up to age 73. You are entitled to 5% cashback of annual premium if you sign up with GE before 31st July.

Father with history of diabetic will be more challenging and depending on the underwriting results. Annual premium for a healthy person at age 63 is minimum at 4k per year.

For mother at age 59, it would be around RM2k ++ per year.

Since you mentioned that your mother in law has a bit of life insurance in the medical card, I am assuming this is an investment-linked policy. You may get cheaper policy with standalone medical card but the premium will increase according to age.

For standalone medical card, you are looking at around RM6k per year depending on the room and board/annual limit you prefer.

Standalone medical for your age is estimated to be around, RM800 per annum. This premium will increase according to age, hence the affordability.

As long as you understand that standalone does not come with any life, critical illness and waiver (All of these are important coverages which makes your protection complete), you may go for standalone. You can consider to sign up other policies which provide coverage for life and critical illness to cover the loopholes in your protection.

I would advise getting medical coverage is a must. You may choose between standalone medical or investment-linked depending on your budget.

Investment-linked will be more expensive because more coverage like life insurance, critical illness or waiver can be added. Standalone medical is just medical coverage (cover for hospital bills only) alone and the premium will increase every 5 years according to the schedule.

Standalone medical you are looking at around RM4,000 per annum but the premium will increase every 5 years based on age. Investment-linked with life insurance coverage (RM30k) will be around RM12,000 per annum and this premium will stay fixed until the sustainability runs out which is estimated at around age 90.

If you think that life insurance is more important, you may go for pure life insurance policy for your mother. There are people who prefer general hospitals over private hospitals.

Take note that the maximum entry age for any insurance is age 70 so please get all the insurance coverage you need for your mom as soon as possible.

This post has been edited by GE-DavidK: Jul 16 2020, 10:54 PM

Premium will increase approximately RM3,000 every 5 years. Coverage is up to age 100 as long as you are continuing paying the premium.

Standalone for male age 49, 1971, is estimated to be around RM1.7k annually with 1 million annual limit.

There are a few ways to do this.

1) You cancel this policy and get a second medical policy. Remember to pay for both policies for at least 120 days for the waiting period just to be safe.
2) You keep this policy and get a second policy with deductible of RM50k. The first 50k hospital expenses would be paid by the first policy and the remaining would be paid by the second. This option might be cheaper than the first option.

For life insurance, the ideal coverage is roughly to be 10 times of your annual income. If your budget allows you to continue these life insurance policies, then you should continue. I agree with you that your medical insurance is on the low side considering 50k annual limit is very limited in today's medical expenses.

RHB Medical insurance is most likely need to buy through agent. Because if agent free, you should be able to buy directly through website rather than submitting enquiry at the website.

You are looking for standalone medical insurance for age 61 - 65?

Usually agents who is at KL is easier to pass forms to the HQ office for processing. Currently, most forms can be submitted via online or email.

This post has been edited by GE-DavidK: Jul 28 2020, 03:15 PM