thanks for correcting, was replying on my phone so wasn't bothered to add on the +.

*edit alamak, my phone type "be" as "he", corrected spelling in the original post

This post has been edited by lifebalance: Apr 16 2021, 10:29 AM

No worries.

Let’s get in the habit of providing the complete and right information to fellow forum members.

Best,
Jiansheng

Likewise.

Hi there,

just curious, I was approached by an agent for Critical Illness insurance.

Its 300k life or 300k CI plan premium about RM230.

I asked another agent which I've bought from from a different company and they offer the same thing for RM177 only.

Both are pretty good insurance companies that start with "A"

just curious why is there a significant difference (RM50) in amount of the premium?

Premium differs because of the benefit included as well as the term of the coverage.

For Critical Illness, there are few category.
An accelerated CI will be cheaper than a non-accelerated CI, what does it mean by accelerated? - the payout will deplete the basic sum assure of the Death/TPD main plan.

Meaning if you had 300k Death & CI coverage (Accelerated), once a payout of 300k CI is paid, the plan terminates as there is no more payout for the basic plan upon death anymore.

Whereas for a non-accelerated CI plan, if you've done a claim for the 300k CI, and upon death, you'll get another 300k payout as well, total of 600k.

Hence the premium you're paying extra is for the additional benefit.

Another thing I've mentioned earlier which is the term of coverage. Certain agents will try to reduce the tenure of coverage in order to stay competitive in their premium or to portray a cheaper premium but in fact, your policy will last shorter as well which makes you require to pay more in the future if you wish to extend your coverage to a longer tenure.


If you want an apple-to-apple comparison, make sure
1. Term of coverage is the same
2. Similar / or almost similar benefits - some companies may show "A - 50 types, B-39 types, C-180 types of CI" make sure you're comparing a similar feature plan.

Lastly, choose a plan that meet your need besides comparing on premium alone.

This post has been edited by lifebalance: Apr 16 2021, 11:41 AM

Both the plans offered are Accelerated CI

The one with higher premium covers until age or 70, which is 40 years away. Does this mean no increase in premium until 70yrs old?

The one with lower premium have a coverage term of 21years, but auto-renewal but agent says premium will increase by then.

In this case, which one would be better? how much increase would I expect after 21 years for the lower premium one if I want to continue

Premiums are not guaranteed as the cost of insurance is not fixed, the insurance company may notify you the need to do top up in the future by serving you a notice.

I guess your statement proved my point where the other one is a shorter tenure.

For a auto-renewal basis, you may be required to pay more at the later stage. Something you may want to take note on. - Are you comfortable to pay a higher premium when you're much older or would you prefer to pay a slightly higher now and enjoy a lower premium when you're older?

This post has been edited by lifebalance: Apr 16 2021, 11:47 AM

For the higher premium side, it would be a fixed amount of premium until 70yrs old right?

for the lower premium side, the premium can start to increase after 21yrs of policy.

with that said, how much higher would the premium be after 21 years? and plus with inflation rate, 300k now may not be much 20years later.

Yes, you can say so (until any repricing)

No one knows, it will definitely be a step up or atleast 50% more because by then, your cost of insurance would have increased due to your age + you start from near 0 cash value.

This post has been edited by lifebalance: Apr 16 2021, 11:58 AM

What does repricing mean ya?

Which means the insurance company will adjust their cost of insurance on the basic plan or critical illness rider if there is a need to.

This will impact your policy term as the cost to maintain the policy had increased thus you may need to do a top up in order to maintain the same tenure.

A question to sifus:

I'm in my 30s currently employed in a company that covers my medical, which I'm unlikely to leave until retirement and the company is powerful enough to be unlikely to disappear/go bankrupt.

Is it financially wise and feasible to apply for a medical card when? What are the risks of applying a card when I'm older (say, in my 40s)?

This post has been edited by DragonReine: Apr 16 2021, 12:57 PM

No one has a crystal ball to tell when you'll fall sick. The purpose of the insurance is to cover for unforseen event.

You forgot that your company will probably not keep you if you're bedridden or no longer functional to perform your duties. Once you're unemployed, will you still be covered by your company?

It's advisable to keep one as a back up at all time. I have had customers from BAT, who has since lay off their staff at the factory in PJ, they cover 100% of their employees for medical but in the end, this happened. Most of their staff were either obese, diabetic or high blood pressure.

It's normal that as a person grow older, the risk is higher to get infected with diseases.

Hi all, wanna ask if a person working in very high risk job, what is the rough percentage he is expecting to overpay as compared to a person working in office (low risk)? Let's say both of them having same age, lifestyle and health condition. Thanks.

Hi do I still need Life Insurance if I already have MLTA? The MLTA covers 95% of my property price...

Ranges 0.25x - 15x

Depends on why you're still buying the additional life insurance for.

hi Batusai, few factors that determine the premium.

1. What is the coverage term? 70? 80? 90?
2. With the quoted premium, what is the sustainability age of both policies?
3. What are the risk of funds chosen?
4. For the CI, what is the detailed coverage? For eg, does it payout based on critical illness stages, does it payout multiple times? Also will the CI payout cancel off the life insurance amount, for eg: once 300k CI payout, there is no more 300k life insurance payout.

If you want a more certain answer, you can show some of the plan details (cross of any PnC details).



hi DragonReine, yes it is wise to get a personal medical card. At least you have ownership over this risk planning. I have a friend who works in CITI, if you saw ytd news, there is probability that CITI will pull themselves out from Msia market. one of the good benefit they give to their employees is the medical benefit. Getting medical card for yourself is at least something to secure yourself financially. So yea my advise is get one

the only risk of applying when we are older is... health uncertainty.

hi Oklahoma, MLTA is mainly to settle off mortgage loan. Do you have any other liability or dependent to take care off?

This post has been edited by ckdenion: Apr 16 2021, 03:18 PM

For the higher premium one, its only mentioned till age of 70, does it mean the premium will remain the same until age of 70? or do I have to find out from the agent?

The lower premium one does mention that its 21 years for coverage term.

You can find out from the agent ☺️

1. Higher premium one 70 yrs old. while lower premium one mentioned its auto renewal to 100yrs old but max coverage term for 21 years.
2. I believe sustainability age for the lower premium one allows after 21 yrs later for my current age of 30.
3. Was not briefed of the risks
4. Did not enquire on the payout method, was told 36 types of illness and 77 kind of illness respectively but I am aware the the general terms of the CI. And yes. both plans cancel off the life insurance amount.