Yes it can be done and it is also advisable to upgrade it on the same policy (if there are no major health complications at the time of upgrade).

You can even upgrade the life insurance/critical illness/accident (if it is insufficient with your current needs) on the same policy.

There is no 4 months Waiting Period as any claims 30 days after you done the upgrade, it is still claimable from the PruFlexi Med. If after 30 days, the claim will be under the PruMillion Med.

Be aware that starting a new policy means paying the agent commission (in full for 6 years all over again). The allocation rate for the funds investment also restarts from 60% onwards instead of 100% (if your old policy is > 7 years).

Cancelling an existing policy just to start a new one is never beneficial to the client but brings many 'extra' benefit to the agent.

Hi jianwei, what is the name of your policy? Perhaps roystevenung can help.

Hi sching, new policy is cheaper reason being the sustainability term is shorter than your current plan. If agent did explain this to you, then at least you are aware why it is "more worth" buying a new policy.

But like roystevenung mentioned, if can upgrade, then just upgrade in the existing plan.

I've just confirmed with my prudential officer *do take note it's public holiday today*

The policy can be upgraded.

As Roy pointed out, by upgrading you don't have to worry about the waiting period as anything happens, it'll still fall back to your current existing policy benefits.

However, I do believe your agent wanted to do the new policy and replace the old policy because he wants to earn the 6 years commission again.

But at your loss since you'll be paying 2 policies premium which you are also asked to hold 2 policies at the same time effectively doubling your cost.

I would say it's not ethical to do so but then again maybe you can reprimand your agent for advising you to do such action.

This post has been edited by lifebalance: Apr 29 2021, 08:35 AM

Thanks guys for your insights and helping to check even on a public holiday

The reason my agent mentioned is that it would cost higher for an upgrade compared to getting a new policy and also the old policy did not allow for newer features like comprehensive CI. The upgrade for medical part makes the final premium higher compared to new policy. Thus, he suggested a new policy. So does that mean I have to choose between a more expensive upgrade or a direct new policy (along with the cost of maintaining 2 policies and paying commission again for 6 years)? My old policy is already >7 years.

This post has been edited by sching: Apr 29 2021, 02:27 PM

☺️ You'll have to do your own homework then to see what's best for yourself

Not sure what you are talking about.

If the medical card is able to be upgrade, it means the policy can even add on Total Multi Crisis Cover (TMCC), aka comprehensive CI.

Perhaps get your agent to run the upgrade in front of you?

Thanks. This is the first time I am doing so much homework on my insurance. Still a lot to learn.

Yeah, this is what exactly my agent told me. Maybe what he meant was it is possible to upgrade but then the upgrade would cost more than the new policy. Perhaps I should check again with him in details on the upgrade.

Also, I took a look at my insurance schedule/table and noted that at the end of policy year 30, I would have zero value in my cash surrender account (due to increasing insurance charges). Does it mean that on year 31 onwards, I will need to pay for a higher premium? Is it normal for all policy or is it only for my specific plan? Sorry for the noob questions as I am still learning.

Thanks.

It's applicable to investment link policies as your policy will incur a continuous increasing cost of insurance charges as you get older.

Thus you can either do a top up on your regular premium or a single premium top up in order to prolong your policy sustainability.

Policies with medical benefit will have a tendency to get premium repricing due to the high medical inflation in Malaysia that will mostly affect the cost of insurance within the Hospitalization benefit.

This post has been edited by lifebalance: Apr 29 2021, 10:58 PM

hi i would like to ask about medical card repricing for ILP. Lets say insurance company decided to increase the COI of medical card by 40%, is the suggested premium increment 40% as well? Is % increase in COI = % increase in premium? thanks

Not necessary, the insurance company will have to recalculate based on what you have at the moment + the increased cost of insurance and then it'll be able to tell how long your policy can sustain until

ya if want to maintain the initial sustainability, then usually the % increase in premium will be higher or lower than the % increase in COI?

ILP will have your life policy, medical card and other attached riders. If everything increase by X%, then logically premiums should also increase by X% for the policy to remain sustainable.

However, if just the medical card increase by X% and no change for the other components, then the % increase in premiums should be lower. For example, 20% increase in medical card cost may result in 15% increase to the overall premium.

Any difference for medical card sold by general insurance companies compared to those sold by life insurance companies?

sching, the upgrade might cost more premium compared to buying a new plan (might ya), reason being is because your current plan default coverage term is up to 99 years old. So when you wanna do upgrade, the premium factored in must sustain until 99 (not sure whether you can opt to lower down premium with lower sustainability because Great Eastern can). For new policy, it is cheaper likely because agent quote you with lower coverage term... say up to age 70 years old? so if can and if you dont mind, you can share a lil bit more details what the new plan is and what it has.

yes you need to pay higher premium to let the policy sustain longer.

hi jhodyj, the premium increment % depends on the fund chosen and current ILP acount value. so when COI increased by x%, the premium increment depends and not necessary x%.

Doubt I got an answer for you on this.

To me, there is no difference. What difference do you have in mind?

I see

My new plan is until age 70. Annual limit 1.38m with no lifetime limit. Death/TPD 100k, CI 160 types 50k (up to 4 times claim)

hi jianwei90 for prudential payment online thru pruaccess or prudential.com.my . Advance premium is totally not allowed by system.
For example the screenshot below , if the premium due date is 1st May 2021 , and you want to make payment on 30 April . it is blocked by the system.
You need to wait until 1st May ONWARDS then only you can allow to tick the policy and make payment.




And one more important information is , for example lets say touchngo give Rm50 rebate for those to make policy payment online.
If you already sign up for credit card auto debit , you are not allow to pay using e-wallet , it is automatically blocked.
If you really insists want to pay using e-wallet , you need to request to convert your policy payment method to manual first.

This post has been edited by ping325: Apr 30 2021, 01:27 PM

Hi sching Its gonna be a long post if want to explain in details using word.
I suggest you can research by google [ ROP insurance malaysia / replacement of policies malaysia ]

Hmm....i dont think this is true , try to ask your agent to display the upgrade vs purchase new , the ipad calculation screen right in front of you.
So that you can 100% make sure what he say is true.

However based on my past experience , which i just done for my client two months ago , upgrading medical card from old card to new card [ old prudential policy purchase 10 years ago ] is much more cheaper compare with purchasing a brand new policy that have the same coverage + add that card.

What i mean is for example ALI is paying RM150 per month currently , after upgrade his medical card , the quotation system shows he need to top up another RM50 , therefore ALI have to start paying RM200 after upgrade.

If he don't upgrade and choose to purchase a brand new card + the exact same benefit which he is currently paying RM150.
I strongly believe this brand new policy package is more expensive. You need to watch the agent generate this two quotation in front of you.
*the above is just an assumption & actual difference may need to refer respective insurer quotation system*

For this part try to search back thread with keyword 'repricing / re-pricing' ;
when we purchase an insurance policy lets say RM200 in the beginning , the chances of it getting repricing in the future is very common.
how much and how often is really depend on a lot of factor such as medical bills rate , inflation... and so on....

UNLESS , there are some specific policy that mention ' GUARANTEED INSURANCE CHARGES' then its a different story ,
but these type of policy generally very expensive in the beginning already.

This post has been edited by ping325: Apr 30 2021, 02:37 PM

I received letter from the insurance company to increase the premium for my Medical card. Any issue if I just ignore it?

Which company you are referring to?

If it is from Prudential, the letter is simply a notification

So even if you ignore it the increase will still take effect as stated