You receive the utility of medical coverage. Is that considered burning money?

Out of curiosity on all these cost of insurance increase, do you all check your annual statement to compare the cost of insurance increase?... Not refering the premium paid but actual cost of insurance deducted after your paid premium is converted to funds unit.

My overall cost have creep up slowly over years but did not recall a dramatic jump but expecting a big one when hit 60...

Yes... But this repricing will translate into actual cost of insurance which is to be paid...

I have not seen a dramatic repricing notification thus far for many years that I need to top up. Maybe the cash reserve was able to sustain it as I intentionally have spec an extra investment contribution so I don't get caught out unexpectedly down the road which for sure an ever upward trajectory...

And I have also refreshed my 4 years back when the insurer offer an upgrade without medical check leveraging same submission back 10yrs+ ago. Yes there was some increased premium but also massively increase my coverage limit is unlimited lifetime which was capped previously.

Yes... But this repricing will translate into actual cost of insurance which is to be paid...

I have not seen a dramatic repricing notification thus far for many years that I need to top up. Maybe the cash reserve was able to sustain it as I intentionally have spec an extra investment contribution so I don't get caught out unexpectedly down the road which for sure an ever upward trajectory...

And I have also refreshed my policy 4 years back when the insurer offer an upgrade without medical check leveraging same submission back 10yrs+ ago. Yes there was some increased premium but also massively increase my coverage limit to unlimited lifetime which was capped previously.

What if the illness happened on 3rd year.

Hey All,

Can I please get some opinion from SIFUs here. I am super newbie to the insurance world, but I roughly understand a couple of items here and there.

Current – I previously bought Life & Medical insurance from Alliance (back in 2012) and I think I am due for an upgrade.

Profile – 36yo, non-smoker, never made any insurance claim since purchase, currently paying insurance +/- RM5.16k

Policy:
Life – Life [500k], TPD [500k], CI [500k]
Premium : Yearly RM3k
Expires : 2042 (age  54. purchased 2012)
Remark : Life & TPD either one, payor cover, depend on sustainability

Medical:
Life – Life [85k], TPD [85k], R&B [200], A/L [120k], Lifetime [1.2mil]
Premium : Yearly RM2.16k
Expires : 2045 (age  57, purchased 2015)
Remark : Life & TPD either one, payor cover, depend on sustainability

Recently I wanted to review my policy as I am looking to increase some coverage up to Age 80.
This was the renewed policy shared/discussed, and now my annual payment increases to 12k:
Policy:
Life – Life [500k], TPD [500k], CI [300k]
Premium : Yearly RM7.8k (pays for 20years)
Expires : Age  80
Remark : Life & TPD either one, depend on sustainability

Medical:
Life – Life [100k], TPD [100k], R&B [200], A/L [2mil], Lifetime [Unlimited]
Premium : Yearly RM4.2k (pay until age 80)
Expires : Age  57
Remark : Life & TPD either one, payor cover, depend on sustainability

Questions to Sifus:
1) Are the new plans justifiable, at this point I am quite certain of protection to age 80. Does anyone has (or know of) better plan or can point me to better value for money plans? 12k do seem a lot.
2) What other items should I consider?
Both new plans require me to cancel the old plan, but the idea is that I do not have to pay the old plans (cause I some “cash value?”) and just pay for the current new one.

Note : I find it funny, that insurance doesnt give benefits for upgrade for long-term policyholder that never claimed since purchased since they already have data. But this could also be like a tactic to get new comm or something.

Thank you everyone.

so actuary or actuaries depending on singular or plural typically works in an insurance company.

if bank staff get better interest rate for home loan, telco companies get telco benefits, and F&B staff get probably some F&B benefit, what do insurance company staff get? you guessed it staff discount or any form of staff privilege when they self-buy insurance plan (well most companies who care about their staff anyway).

i dont want to go down the route of ILP vs standalone yet... it's a lesson by itself, but i want to rebutt what actuaries will buy? whatever most value for money. if they say can buy, then should be ok la. if they really buy, then you better follow la...

But i want to highlight, actuaries do buy ILP. they just happily use their staff privilege to buy.

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Lesson #2: Buy Medical Insurance with Deductible and Co-insurance

I can loosely tell you what most actuaries will recommend you to buy.
1) Buy simple, cheapest of whatever you can get. if life insurance, buy term life or the simplest form of whatever life insurance you can get, AND DONT EXPECT any return. 
2) if medical, buy with deductible or co-insurance.

So, why Buy Medical Insurance with Deductible and Co-insurance?
Mainly, it is to lower the premium or insurance charge that you pay to the insurance company. Medical insurance with 0 deductible is being on purposed priced in a very expensive manner. So buy one with deductible. With Co-insurance of 10% and 20%, even better. the premium for these are typically cheaper. in the past there were instances i heard that the medical insurance with co-insurance get repriced less because they do claim less. THIS however, i cannot guarantee will continue to hold true. but if you do get some savings from the premium you pay.

How much deductible is enough though? Not sure, honestly at the end of the day, it's up to you. i have talked to some people saying RM300 deductible also can't afford to pay. i'm sorry, but life is such. you want to masuk hospital, you gotta pay. if you can't i am proud to say, you wont die in Malaysia because you are sick and poor. our government hospital, our KKM, really try our best to treat the patients. This one i genuinely believe so.

i have mentioned this in different post, my own deductible is 15k. i just have to stomach the 1st 15k on my own, after that it's paid by the insurance company. i do save alot since i was a fresh grad. having said that, i do work for an MNC, hence my employer coverage is sufficient. even if i dont have, i do have this and i can afford to pay RM15k on my own.

what if 15k is too high for you? you can look for around 1k, 3k, 5k. or recently AIA has one 20% co insurance up to RM3k. which is like having a 3k deductible, sort of. would this mean you wont get repriced? No, but HOPEFULLY it should impact you less. IN my case, the 15k deductible also get repriced. i'm NOT sure and i dont know if the % of increase is lesser compare to someone without deductible. i hope so...? the quantum of the increase is definitely very acceptable.

Do i have any proof my word is to be trusted? Nope. Am i an actuary? Nope.

Do i think you can trust me? Yes, most of the time, if I dont mistype cause i worked 9 to 6 everyday or if im tired from gym.

You are one of the few alert insurance policy buyers. Some ktards insist on buying standalone 'because' they assumed it has lower commissions and ILP are scams, they have not seen the commission rates in the proposal/quotation.

Long run probably ILP is less, short run obviously standalone is less

Why keep changing ILP is maybe cheaper? Any trick?

Hi, may I know what do you mean with review? Like coverage? or the fund they put in?

review your coverage; switch / move coverage details; add or drop riders etc

better if your insurance agent is also a wealth planner

perhaps those wealth planner you met really insurance agent ... wealth planner looks at holistic view of you expenditure and future income and give you proper financial advise; and how much should spend on insurance etc...

too bad you met those 'fancy' insurance agent that masked themselves as wealth planner

A non qualified or non certified persons can have a vast different of opinions/views/ideas to gives while a qualified or certified persons cannot gives due to what they knew and qualified to gives

And as long as they have something to sell after analysing your portfolio....its a clouded judgment...  its somehow conflicting interests no...?

Good for you,
Luckily there are regulations imposed recently relating to giving unqualified advise relating to investment....Good for majority of the population

I have another AIA investment linked insurance including medical card 1 million and life worth 430k. Premium monthly RM300 for now, and premium only guaranteed up to 60 yo only. after that premium will be rocket high I guess since my premium not enough to cover after 60 yo. I am getting this extra 500k life insurance to make up 1 million coverage. Useful when buying property, no need subscribe MRTA or MLTA. I have been getting standalone life insurance quotation from AIA too, but premium is far higher than etiqa.

I see a lot of post calculating the worthiness of insurance by the premium cost vs fund performance and never get to utilize them etc, just sharing my experience here

When I started working I was sort of pressured into taking a medical insurance (200k limit PA), had to pay about 200+ per month. Then about 3rd or 4th year of working, I had spinal injuries which translate into 40k+ medical bill (Gov hospital waiting period is about 9months+ for the surgery)

Then my kid came along and I took out another medical plan for him once he is 1month old, and within 3 years of his life he had 2 surgeries (Due to accident + illness), 30k+ medical bills

Also since my own medical plan had kinda low limit, I did bought another medical plan but it has exclusion regarding the previous conditions (i.e spinal thingy), so yeah I'd like to think getting a high limit medical card when you are still healthy is important

Same thing applies when you are the sole income earner in your family, and you still have mortgage/car loan etc, some sort of insurance like Life/CI/MRTA is no brainer

Everything want to increase.

Please share more details. What's your medical card? How much is the quantum of increase?

for new medical plan introduce, is it having new pool of fund? i'm curious...
if like that, isn't it advantageous for healthy older people to join new plan? while young and latecomer participant will bear higher cost when they get older due to the plan no longer in the market and early participant may already 6 feet under or end their policy already...

I am wondering if anyone notice this effect.

Say one is 36 years old, male, healthy: pay around 180rm pm for coverage.
But at age 76, which i dare say really needed the insurance, the cost is at least 2K rm pm for coverage. (lets not kid ourselves, it will most probably be way more than that when the time comes).

Can one afford to continue the coverage just when one is old, most probably not working and needed the coverage the most?

A great way to hook on "loyal" customer for life... 

That's the catch 22... continue the coverage if one can afford by the time one aged, or basically "wasted" all the payments up until that breaking point where one no longer can continue to pay the coverage.

Does it not seem, subconsciously, a little like a nefarious scheme that is not sustainable.... maybe that's why some layman liken it to a ponzi scheme of sorts.    

One more observation to note: all these recent no limit lifetime coverage policies look good on paper... but in reality, the medical premium fees will skyrocket as time passes.
(insurance is a pooled risk sharing scheme... pretty much no stats yet for age 70 to 80 under these unlimited lifetime coverage policies yet).

the motto is always get as much insurance as you can afford.... or something like that by agents...
(and they get like 50% of your first year premium paid... ).

oh well... for those who can, its better to earmark/set aside like a million ringgit (have to revise this number every 5 years yourself) to cover old age medical treatment than throw into some super expensive ILP or medical card.

I had heard stories of waiting lists of some normal emergencies like stent procedures can be long in govt hospital

Is there a insurance company in M'sia that has the least increase in the past 10 years. This is for ILP medical policy.
If we could poll the data from internet users for their medical insurance premium hike for the past few years then we could present it as a comparison table. This will be a valuable info especially for people that is shopping for one