Yes, that's what I'm telling.
What (policy) we can buy online is less than what agent can be selling

Correction. My medical insurance have no return. It's basically me burning my money.

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...

Cost of insurance deducted will increase every year simply due to age. That's different from medical repricing where there's a one off bump across the board for everyone.

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.

This post has been edited by gamenoob: Jan 11 2024, 11:35 AM

Yes. Burning money if you never use it. Like my friend. In his 60+. Never use his medical insurance.

I think those cost of insurance is not publicly shown. More like company secret?

What insurance company is that?

This post has been edited by Ramjade: Jan 11 2024, 11:12 AM

What if the illness happened on 3rd year.

Ayo.... insurance benefit is like unwanted lottery... rather have it burned than materialised it.... I know sounded ironic....

The cost of insurance on our policies statement... not their super secret internal cost....

Allianz

contestchris take note on bolded stuff.
1. Choose good fund
2. Ask to dump as many possible money into fund
3. Top-up every now and then

Then too bad. That time I think use govt hospital.

What you worry is the one in a million chance you hit a rare disease and it cost alot more than normal to get better. You can opt for a medical plan with high deductible, like 50k. So you cap your risk there.

This is where you buy a medical insurance with the high deductible. In the person's case if he has 50k, then he buys a 50k deductible medical insurance. His risk will be capped at 50k. So he does not have to worry about anything above 50k.

Of course deductible also have a basis. Example 50k per year, so the assurance that every year, touch wood if you get sick max is you pay 50k.

‐--‐---------------------------------------------------------------------------
I am gonna have field day answering or rebutting some of these

Lesson #1 (in no particular order of importance)

Medical insurance is not a free lunch. Insurance companies are FOR-PROFIT companies.

They will increase the price when claims exceed what they collect from you. This will not stop happening. What you know is the price will increase. How bad it is? Who knows...?

How many years or how frequent will it be? Depends on your insurance company.

The more frequent they do it, more likely smaller quantum.

The less frequent, the bigger the quantum.

How not to get influenced by this? /s but well... you can always go to government hospital and not buy medical insurance. But Honestly i dunno. This is a certainty but maybe there is an option that makes it more palatable but this... maybe look out for lesson #2

Isn't BNM doing something about this? Arent they aware? Yes, they are aware of these price increase. Because without BNM approval, you would not have received the letter telling you to pay more.

This post has been edited by adele123: Jan 11 2024, 05:21 PM

Yes many different deductible basis, some per year, some per disability, some per admission. 50k deductible only save you few hundreds per year depending on age, not worth.

And deductible isn’t for self cover, is by existing insurance such as company benefit. Imagine admitted for rm40k bill but cant claim because of deductible, yet still paying every month.

Read this thread before you sign up for an ILP. Reason I tagged you here is in the insurance thread there are some people who are easily trigger to report everything I post.

This post has been edited by Ramjade: Jan 11 2024, 06:32 PM

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.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 digress abit BUT i have talked to some people who know some people who is 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 employer coverage 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.

This post has been edited by adele123: Jan 11 2024, 06:27 PM

Wall of text. Later I slowly read. Actuaries with an s

I have also come to realize buy earlier is better because you accumulate some hocus pocus something statement is not 100% true. There are many sections of it.
You accumulate more funds, true. You accumulate more Cost of Insurance within Insurance company to make them give you more tolerance of premium increase? Absolutely NO.
My friend who is same age with me, had premium increase notice of about 100%. And the oddest thing is Medical plan remain the same. He later found out that even buying new plan from the same company, with 80% higher premium can get Medical AL 150k to 1.5mil. And Lifetime still unlimited.
Note: from reading replies in this thread will need to check coverage projection is up to 70 to 80 years old.

Early then no loading from pre-existing and also none covered item lo

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.

your example of 30% vs 15-20 is also in % rite?
percent of what? of payment right? so which payment is higher?

If you look at the insurance charge rates for life, CI, medical card for ILPs....they are all SIGNIFICANTLY lower than the equivalent standalone traditional plans.

The catch is:

1. Frontloaded commissions and expenses in the form of lowered allocation rate (used to be first 6 years, now its the first 9 years but at a lower quantum). If you cancel early on, the company and agents make bank.
2. Your bear the investment risk
3. You pay around 1% to 1.5% of your gross investment returns as management fees to the company
4. In the event the policy is not sustainable, your top up premiums will only get 95% allocation
5. In the event you upgrade your riders, the differential increase in premiums will be resubjected to the Y1 allocation rates
6. RM6 policy fees to insurance company every month

Others can chip in.

For proof, you can compare the insurance charges for SmartMedic Shield (ILP) with GreatMedic Shield (standalone).

This post has been edited by contestchris: Jan 13 2024, 04:17 PM