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 Insurance Talk V6!, Everything about Insurance

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Yamcookies66 P
post Jul 2 2020, 04:41 PM

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QUOTE(tyenfei @ Mar 10 2020, 08:54 AM)
Halo Anwa,

Most of the medical plan now "renewable, valid till" till 99yo / 100yo.
But doesn't mean your current premium sustainable till that age. Insurance charge will raise from time to time.
Some of my friend's plan only sustainable till age 60 but policy renewable till age 99. Meaning to say company will ask for premium top up soon. If he refuse to top up... by age 60 he got to pay a lot more higher premium.

My personal preference to quote buyer sustainable plan till 80yo with certain amount of estimated cash value by that time. In order to have room against raise of insurance cost / slow investment market return.

Get any agent to help review for you will do smile.gif
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Hi,
I am still quite unfamilliar with the terms used in insurance policies.
An insurance agent proposed to me sustainibility until age 60. May I know what are the bad sides of it?
In your friend's example, you said that the company will ask to top up the premium. Under what condition?
Yamcookies66 P
post Jul 2 2020, 04:53 PM

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QUOTE(lifebalance @ Jul 2 2020, 04:44 PM)
A lower sustainability I.e age 60 would mean by 60 years old , you may be asked to do top up premium in order to continue your coverage which is normally much higher when you’re at 60 years old.

I won’t say it’s a bad side, it just meant that you’ll be asked to pay a premium top up different earlier.

If you chose a longer sustainability I.e 70 years old then maybe you can get to enjoy another 10 year coverage without being asked to top up.
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Thanks for the short but clear answer!
Could you also please help me understand the meaning of cash value? The agent said upon the age of 60, I can increase my term, provided if my cash value is enough. This is an ILP plan.
Yamcookies66 P
post Jul 2 2020, 05:08 PM

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QUOTE(lifebalance @ Jul 2 2020, 04:58 PM)
Cash Value within an investment link policy is the value of the units that the insurance company have invested in for you while you are paying your insurance premium.

If the policy had 1,000 units and the unit price is RM2 for each unit, then you have cash value worth RM2,000

As I've explained earlier, that you need a top up. Assuming you were paying your premium all these while and by 60, you are left with RM2,000 cash value, the following year, the insurance company charges RM3,000 for your coverage, which means you need to do a top of RM1,000 to maintain your insurance coverage. (Of course this is a very layman explanation although it may not depict the real-life mechanic).

This is because insurance company increases their price as you grow older due to mortality and morbidity risk factor.

tongue.gif seems like I'm doing your agent's job, maybe he/she should share 50% of the commission haha j/k
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I see! Wow I will need some time to digest all of these.
Haha thanks for your generosity in sharing the knowledge!
Yamcookies66 P
post Jul 3 2020, 08:26 AM

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Hi, I need a third unbiased opinion.

So I have two agents from two different companies proposing me ILP plans. Which one do you think will be worth it for my long-term commitment?

Company A:
Monthly premium: RM180
Life: RM100k
CI: RM50k (multiple claims including early stages etc.)
PA: 50k
Medical card: Co-insurance RM300
(The agent reasoned with me that since their medical card is cheaper than the rest, actually I could save more and use the saved money to pay RM300 when I need to use the medical card)

Company B:
Monthly premium RM210
Life: RM100k
CI: RM50k (including diabetes benefits & etc.)
PA: RM50k
Medical card: Zero deductible

At first I was going for Company A but the difference between A and B is only RM30. So if I go for Company A, I would only save RM30x12 months = RM360 per year. Whereas I could use that money to buy plan from Company B with cashless admission. However, Company A reasoned that I won't be going to the hospital every year.

I think that it's like a gamble.
Company B: I pay annually an extra of RM360 more than Company A's premium but I can use the medical card hassle-free, but also I may be healthy and not have to use the medical card
OR
Company A: I can save RM360 for a few years if I never do any claims.

Which one is worth the risk/gamble?
I'm leaning towards Company B but I have to hear an unbiased opinion.
Yamcookies66 P
post Jul 3 2020, 08:45 AM

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QUOTE(lifebalance @ Jul 3 2020, 08:32 AM)
Up to you to decide whether with or without the deductible.

Having deductible saves 10% on the cost of insurance by just having to pay extra rm300 upon admission. May not be a huge savings now but over the years, that would add up.

But if you prefer something hassle free then zero Deductible should be your choice.

If both sustainability are the same age then go with zero deductible. *edit* forgot that you've mentioned the premium, I believe they have adjust it until age 70. RM30 difference isn't a hard choice to make lol
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Haha you're right. RM30 difference seems little, but the premium will increase a bit from time to time right...

Also, I'm working full time now and my company provides insurance benefits of RM5,000 per year, but after 2 years I plan to quit my job and work as a freelancer. Thus, I'm thinking of taking RM5,000 deductible for these 2 years and I plan to not make any claims for 2 years. However the agent from Company B advised me to take non-deductible now. He said if I take deductible for these 2 years, and then upon switching back to non-deductible, the premium will be higher.
I could not make any sense of it. Is it true?
Yamcookies66 P
post Jul 3 2020, 09:56 AM

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QUOTE(lifebalance @ Jul 3 2020, 09:42 AM)
When you change your plan from deductible to non-deductible, you have to re-declare your health status, if you got health problem by then so sorry you won't be able to make the changes and have to stick with your deductible plan, if your deductible is very high then you have to always fork out that amount whenever you get admitted before the balance is paid by the insurance company.

Let me guess Company A - Pru, Company B - Allianz
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OMG I think you're a sorcerer. How did you know LOL
Yamcookies66 P
post Jul 3 2020, 11:28 PM

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QUOTE(ckdenion @ Jul 3 2020, 01:40 PM)
hi Yamcookies66, what are the sustainability of both proposed plan? I will actually pick Company B in this scenario. It has a non-claim discount if no claims are made. also the diabetes coverage is something extra whereby company A doesn't have.
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Both plans offer sustainability until age 60..
I only want to cover for unexpected accidents and CI. But I read a lot of comments saying that ILP plan is not that good as compared to term insurance.
Should I be concerned?
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