Meeting up with my agent after he gets back and I'm currently paying myr 1500 for my life insurance, 280 medical insurance for my son and 250 medical for my son. Making it too costly 2k plus just for insurance.

I'm thinking to reduce allocation of my monthly life insurance which is currently giving a pay out of 4 million on my death to a monthly premium of myr 500 to 700.

Fingers cross he doesn't try to talk me out of it cuz I would be very upset if he hard sells something which I really dislike.

hi sifu, need some guidance on selecting insurance for my wife.

my wife 38 years old and she is a housewife. She is currently using my company corporate insurance (RM100K limit yearly hospitalization).

Seriously RM100k is not really enough. I am thinking to get medical plan for her with premium less than RM200 monthly (without Life and CI) . Which plan do you think is suitable for her?

When one is getting older, .... be prepare to allocate "enough" in your monthly budget in your retirement planning.  Some things will have high incremental increases.

How important it is to have a friend as the agent? Better or worst?
Looking for medical card and hibah

This is some passionate argument over …. Insurance. Wow.

If nominee get the money from insurance will go to estate. Then nominee get money from kwsp will hv to go to estate too?

I still believes nominee get the money from (insurance and /or kwsp) for themselves. They may not hv to transfer the money to the estate.

Btw, I don't know how aware readers are but they really need to know this. A trust nomination is bukan main main. It is very powerful. In my view, you might as well do an assignment if you want to go the trust nomination route.

A policy owner shall not deal with a policy to which subparagraph (1) applies by revoking a nomination or adding a nominee other than his spouse, child or parent under the policy, by varying or surrendering the policy, or by assigning or pledging the policy as security, without the written consent of the trustee.

Simple argument. An absolute assignment means you've (assignor) transferred all rights and interests including liabilities (premium payment) to the assignee. They are now the owners of the policy for all intents and purposes. Up to them to maintain it and all benefit proceeds accrue to the assignee and not the assignor. No question of estate issues etc. The assignor's debts and other obligations (familial etc.) do not have any relationship with the assigned policy. The assignor might now only be the insured life in the assigned policy.

There is another kind of assignment called partial assignment. A partially assigned policy, this needs to be confirmed so please do check with your insurer how they operationalize this, means the rights and interests in the policy are transferred to the assignee but the assignor still maintains the main liability (premium payment). In such an instance, any varying to the policy would need the partial assignee's okay before it can proceed.

Both partial and absolutely assigned policies do not form part of the assignor's estate and are not subject to creditors.

All nominee policies, unless they are trust nominee policies, are subject to creditors

My understanding is that stamp duty only costs RM 10. No other costs that I'm aware of. Oh, I think need to go to a Commisioner of oaths I think. This part I'm not sure. Have to confirm with the insurer's policy servicing department. The assignor will have to cover the costs.

Oh another thing. Families are complex or simple, depends on how you view it. Let's say you are the main breadwinner and you have a large family. You got grandparents, children and maybe nephew nieces to care for. You have a loving and caring wife but you want to ensure if something happens to you all will be taken care of.

If you don't want to do a full/partial assignment, put your wife as a nominee (the trust nominee) and all other family members, name them as nominees as well. Additionally, go to commisioner of oaths and sign a statement telling how you want each of the nominees to be taken care of and make sure you give this to the insurer upon policy application and make sure all other nominees have this info.

Ask your insurer to ensure all nominees are named in the policy document  (addendum). This way creditors cannot touch your policy and all nominees will be taken care of. This is how I think it works but please do check with your respective insurers..

Last time when I checked with the policy servicing department, I remember them telling me can put percentage of sum assured to be received for each nominee. I don't know if can do anything more complex than that, but if you have a way you think you want your nominees to be taken care of, go to commisioner of oaths put everything in paper, bring your main trust nominee along and ask her to sign an understanding.

Make sure you confirm with the insurer that your policy is a trust policy even though you have multiple other nominees who may be both beneficiaries/executors. Also confirm with the insurer that if the insurer  splits the claim benefit payment upfront according to the percentage you've assigned to each of the nominees that their portions will not be subject to your creditors.

I bought HLA 3 generation insurance more than 20yrs ago life insured my kids, me policy owner. Fully paid up, the policy is paying rm5k a year to me for life. 4kids i got rm20k a year.

Recently i assigned the policy to each of them, anything happens to me the policy belongs to my kid, they can go claim the policy from HLA as their own  and enjoy the rm5k yearly pay out

This assignment is partial? I am still the owner as long as i am around. HLA asked if i needed stamping then pay rm10, i said no need  still valid same, HLA said yes valid just the same So assignment foc

Assuming that there are those charges and if it is possible to do a trust nomination and ensure all beneficiaries are taken care off the way you want them to be taken care off, sure, why not. But are you certain those charges are there if it is a partial assignment? When did this come out, 2022?

I was referring to the sister as nominee situation. There is no auto trust nomination in a sister as nominee situation. The sister's receipt of benefit proceeds will still be subject to creditors. Only spouse/child/parent may be trust nominees.

So for all other non spouse/child/parent nominees, you need something more ironclad to shield them for creditors

This was in 2022. What in the world is going on.
I'm shocked. The industry better buck up. This is a regressive move.

In December 2021, the IRB implemented a new rate for stamp duty of assignments on life insurance policies, based on love and affection.

A nominal stamp duty of RM10 per assignment had previously been imposed. However, such assignments are now assessed based on an ad valorem rate.LIAM engaged a law firm to prepare a legal opinion for submission to BNM on the reasons for maintaining the stamp duty rate of RM10 for assignment of policy and requested BNM’s assistance to engage with the IRB to find a solution to this issue. The discussion and efforts to seek an amicable solution is on-going.

Cause the initial argument was on whether a sister as nominee would be a beneficiary and subject to creditors. To which I suggested doing assignment if they wanted the sister to be pure beneficiary and not subject to creditors. Then I also clarified that even in an trust policy situation, they are not pure beneficiaries but basically trustees of the moneys. And since there are all these restrictions on varying a policy in place for trust policies, might as well assign in that case.

I don't see any contradiction. You are just picking an issue to be snappy

Kaotim is offered by syarikat takaful malaysia. It's a licensed takaful operator.

The general perception would be cheap no good, good no cheap. The real and obvious con is there is no agent to help you claim when you need to masuk hospital.

On paper based on my cursory glance, it's just a typical medical plan like any other, with slightly different benefit, etc. So i feel it's a great simple medical plan that covers the necessary at a low cost. And the medical plan is not yearly renewable, so that means it will last however long they allow it which is until 85. Which i think is more than enough.

If you want to be sure, you gotta do your homework and open up the contract wording and compare one by one with probably what you have now.

And like any medical plans, repricing is certain in the future. This uncertainty will exist however it was purchased.