Nowadays baby insurance are quite common and package may not differ much in my opinion.
Maybe you can get quotation and compare with few insurer first ?
Prudential & GE have it , but im not sure about AIA & Alianz.

based on my experience , suggest you to consider pre-born baby insurance somewhere between 18 weeks - 30 weeks
pre-born baby insurance for prudential submission steps is much more tedious compare after born
you must chase your doctor for the complete gynae report and got time frame limit for submission to avoid reject.
both mummy and baby have to be completely healthy as well.

one of the common case why rejected is due to mummy have pregnancy glucose issue , and need to wait until born only allow purchase.
most most common & worthy claim for pre-born policy is baby jaundice photo-therapy after born

If you need more info just google PRUMy Child Plus & Infant Care Plus
For infant care plus , the younger the mummy , the insurance cost is cheaper.

This post has been edited by ping325: Feb 26 2021, 10:51 AM

For a pre-born, I'll recommend Prudential as it has the best coverage & pioneer in that category compared to other insurers

Should I buy now or wait after deliver?

Recommend to buy now if you want to enjoy the pre born protection.

this is very subjective , because me myself just had my first baby, now he is two month old
i purchase after born , because mummy got some issue on glucose side which get rejected

my baby born healthy at sunway hospital , except with high jaundice [baby yellow] , the photo-theraphy caused me 1k burned
if i did purchase during pre-born , i can saved money on this phto-theraphy and this is just ONE of many of the coverage stated



maybe i explain two scenario below :
Assume Ahmad child born on september 2021
Assume Ahmad plan to purchase life insurance of RM100 per month for his baby with standard coverage [ life , medical card , accident .... ]

Scenario 1
Ahmad purchase insurance now for his baby inside stomach
march 2021 he need to start paying already
RM100 for march , april , may , june , july , august = RM 600
on top of that he need to purchase a rider [ addon ] to cover risk during pregnancy - infant care plus
Lets assume one time payment of RM800 [ this cost is depend on mummy age , the younger the cheaper ]
which mean he paid extra RM 600 + RM800 compare to scenario 2
the good things is he have piece of mind basically your baby is insured if anything happen;
most of the complication area already covered quite comprehensive, even after born still insured because you purchase pre-born
on top of that , the rm100 life he paid means standard life benefit coverage for his baby is secured after born as well

Scenario 2
Ahmad purchase insurance after baby born
He only start paying on september onwards RM100
He saved RM 1400 compare to scenario 1 , this money can buy baby accessorises already
however , if complication happens before or after birth , then he need to take the risk
which is bear all the medical fees or send to government hospital
if nothing happen of course this scenario saved him RM1400
*take note that he no longer can purchase infant care plus add on after baby born*

other sifu may add on your advise? of course purchase during pre-born is better , but also it costs more
how to assess or how much you willing to take the risk is really up to your budget

the true purpose of life insurance is to buy during healthy and claim when not healthy.
if baby something happens during pregnancy or after born , its very hard to purchase insurance anymore

This post has been edited by ping325: Feb 26 2021, 06:31 PM

In my perspective on your assessment, you did not bring up the other benefits that will come along with the policy besides the pregnancy benefit.

The baby will essentially be getting the following benefits @ RM188*
1. Infant Care Plus
2. Essential Child Plus
3. PRU value med
4. Acci Guard Plus
5. Acci Med Plus
6. Payor Basic & Saver
7. Parent Payor Basic & Saver
8. PRU saver kid

If you're purely assessing that paying RM200 monthly for X amount of months result in no claim on pregnancy complication, a layman would view it as an absurd amount to pay vs the benefit that it's getting from just one benefit (Infant Care Plus).

However, you're not giving the full picture on what you've describe to the questioner.

Then again, getting the insurance for the pre-born is just in-case the baby is born with any complication or health condition which may render it unable to get covered in the future if they're born with congenital defects. But if saving RMx amount could be trade off for the peace of mind that you need to pay for hefty long term medical bills in the long term, it's up to the person to think and decide if it's worth it.

thanks for the heads up , a bit long to write in my earlier post
yeah , forgot to mention life benefit for that baby on top of pregnancy risk
he still get medical card , accident , child illness coverage , payor etc
i checked again from system it can be RM38 up to few hundred depend on coverage choosen.

AIA do have prenatal insurance coverage too.

ANZ (1163): ALLIANZ MALAYSIA BHD



observatory @limyuwei,
Thanks for your explanation. I agree with kywoo. Your contribution is indeed very valuable to us who find the financial statements of insurance companies too technical.

I wonder if you follow Syarikat Takaful. The combined ratio of its general insurance business is much lower at 65% to 70% range (latest quarter 58%) as compared to Allianz at 85% to 95% (latest quarter 84%).


Any idea why such a large discrepancy could persist in a competitive market?

The other question is whether we can find the embedded value of Allianz life insurance business? The latest report from RHB put the estimate at RM3 billion. But it’s unclear how they arrived the figure.

26/02/2021 1:45 AM

limyuwei Shouldn't just purely look at combined ratio. You can try to look at claims ratio by product. Generally motor has a higher claims ratio, while non-motor has a lower claims ratio.
e.g. Allianz Q4 2020, overall claims ratio 55.5%, motor claims ratio = 59.6%

Given motor is about 66% of Allianz GI product mix, 0.66 * 59.6% + 0.34 * non-motor claims ratio = 55.5, you can get non-motor claims ratio is about 47.5%.

STMB (GI side), motor is approximately 45% of its business mix only, hence overall naturally will see a lower claims ratio for STMB.




Another thing about high combined ratio for Allianz GI is, you will notice, Allianz GI, despite being number 1 motor insurer, doesn't offer direct purchase.


Hence, almost all motor insurance sold, will come with commission, this will also explain the higher than average commission ratio, which also part of the total combined ratio.

However, it is very important to note the key difference between Allianz (conventional) and STMB (takaful).


Say if both pay 100mil lesser claims in 2020 due to Covid, Allianz can pocket the 100mil directly, but STMB, due to the takaful surplus sharing, can only pocket 20-50mil (depends on the risk sharing %).

I not sure if Allianz Life ever publicly disclosure its embedded value. It does however disclosure its new business value (i.e. embedded value for NB sold).


26/02/2021 9:05 AM

Papayashot Hi Suwei, apart from the syariah-compliance investment & profit-sharing scheme in Takaful Insurance, what is the other notable difference between the business models between takaful vs conventional insurance?

And, is the market (potential customer) of takaful and conventional insurance well distinguished? For example, why certain peoples prefer to buy takaful insurance, instead of choosing the medical insurance offered by a conventional insurance player?
26/02/2021 2:12 PM

limyuwei Takaful concept essentially take away the insurance risk component from the Takaful operator (hence the name operator). The source of profit for Takaful operator (e.g. STMB, Takaful Ikhlas, Etiqa), mainly from

wakalah fee (more front end)


, rather than the risk surplus sharing (more long term), but this can vary by companies.

You see, Takaful products can't be priced at the same level as conventional products, as conceptually Takaful products need to be more expensive, due to the additional risk sharing portion.

However, due to market competition, Takaful products have to be priced at the same level as conventional products, coupled with risk sharing, takaful operators can't earn as much as conventional insurers from the insurance portion. So, less insurance risk, less profitable, profit usually front loaded (which will change under IFRS17).

Potential customers for takaful and conventional are obviously very different, especially for Life side. However, this actually doesn't matter much, as Takaful don't really seek to profit from underwriting profit.

Product mix also varies a lot across takaful. Most of them do have ILP products, but not really selling well, except for PruBSN and Etiqa.


Key products for other Takaful (e.g. STMB) are MRTA, which itself is another product with high day 1 profit (due to single premium), and will impact a lot under IFRS17.


26/02/2021 3:12 PM


Anyone know well about takaful????

hi prescott2006, it is better to buy during pregnancy. too many uncertainties during pregnancy and also post-deliver. at least you have something now to secure and buy peace. i will personally recommend Prudential pre-natal plan for the baby especially.

Have just done a self-review on the policies bought and there is particularly one that I think needs to be updated and would appreciate it if fellow sifus can shed some light on this.

I currently pay 7.4k per year for a participating policy (Allianz PowerLife) with the coverage of Life 250k, TPD 250k, Critical Illness 150k.
I am now considering surrendering this and replace it with term insurance with higher coverage. I am now more inclined towards a term policy as I am looking purely for protection purposes.

Comments?

Term policies will have a limitation of maximum 500k coverage.

It shouldn't replace a whole life / investment link policy as it's meant to be a term coverage where you would like to have a higher coverage for a fixed period which you can't renew once the period has expired.

If you're just looking purely for protection without any other elements then you're right to choose the term policies however it has its limitations.

Keith, thanks for your response.

I noticed the limit as well, particularly with insurers that give an instant quote on their website.

Just thinking if there are insurers out there without this limit.

hi fast_coder, firstly you identify what you actually need (which i think you'd already done so since you also reviewed your own policy). then find the plan that suits your need the most. can't comment much on term policy since don't really know what your concerns really are here.

hi fast_coder, maybe you can give more info ?
current age & how long you want for this term period ? 10 years ? 20 years ?


why not perform editing on your current policy by adding coverage & reduce sustainability to lowest ?
instead of purchasing a new policy all over again

This post has been edited by ping325: Mar 1 2021, 12:27 AM

I'm 33..paying about 350/month for 160k life insurance, 500k annual limit for medical, 150k critical illness and 300k accident p.a dunno wat...
is that normal? average?

mind asking,...this RM350 pm is how many % of your use able income pm? (income after MINUS all other needed expenses)?

the annual limit for medical a bit low....
if still healthy, suggest to take another medical card with limit of minimum 1Mil / year.


Just some illus how quick can 500k is done for a year

I can say no one can really tell, there are other factors to consider such as
1. When the policy was bought
2. What are you comparing as an average ?
3. The purpose of buying the coverage in the first place

thanks guys for the quick replies...the purpose i'm asking on the average is.. like if someone else is paying same amount of rm350/month, same age but gets better coverage for each life insurance, critical illness, medical etc...