life insurance objective is to provide you protection but the choice is yours.

life insurance is to provide your dependent coverage
it's only covered when someone is death or diagnose with TPD ( total permenant disability

for personal coverage it's important to have a medical card/crictical illness as we know the medical bills are sky high nowdays

dont get mix up


the min is guaranteed. However, the max is not. Why? Because it is a livestment link, it can gove you more return compare to Life insurance(fixed 4~5%). U wan more, then u need to take the risk.

Investment-link does not guaranteed any percentage of return. . . normally insurance company project a lower returns compare to the actual
fund performance to the clients. Only endowment plan provide guaranteed returns for 3-4% + dividen declare on yearly basis depending on company performance.

Worst case senario A: If Samy Velu is to be Malaysia PM tmr, RM1 per unit drop till RM0.5 cents, initially your savings/investment from
RM10,000 will be RM5,000. Dont worry will not happen

Senario B: Over a 3-5 years period of time, if the unit price increase from RM1 per unit to RM1.50, initially you gain 50% from ur savings/investment

This post has been edited by Colaboy: May 13 2008, 02:41 PM

I beg to differ since i just started work here... i encountered many cases based on investment linked products from certain companies need customer to top up coz it does not cover their protection now since the market went down.

Actually every insurance plan is good.
It will give u something to compensate ur loss of uncertain event,
so it is better to have 1 for it.
If u think that u need to cover more areas n want to have more sum insured.
Then just go n bought it base on ur afford ability.
No free luncheon for pay little amount n can give u more sum insured.
N just remember insurance is something u cant buy it when u need it.
So u all should get it BEFORE u need it, when u are in healthy status.
Thats all.

Wah,,,! 1 yr RM700 for PA??? I can get u a million protection PA liao...! PA for RM100k normally is <RM200. dun b cheated by lfe agent, they surviving on commission. sure push high premium product la....

This is an example of a"Bankrupt Policy" which if cusomer pass away, the dependent of the customer could not survive long or will have a very hard time.From what I see,no point reducing the plan, the difference will not help to buy a house.Alternative? Do part time or become an insurance agent part time and learn more about the products and you get to buy at a cheaper price.

Humbble

I don't recommend someone to buy investment linked plans (ILP) because we are the ones who bear the risk, not insurance companies. When we buy insurance, we want our risk to be transferred to the insurance companies. ILP can't achieve this objective. However, I never say that ILP is not good. It is just that you have to take the investment risk when you buy ILP.

Make sure your PA is at least twice your D&TPD's amount. If your company has good medical benefits, just take the minimum medical card coverage.

---

Added on March 7, 2009, 12:40 pmFor ILP, if the insurer go kaput, the SUM ASSURED is guaranteed by the government, but not the CASH VALUE. That is the con for ILP. But try and do a comparison for the same coverage for ILP and conventional insurance, you will see that ILP costs abt 20% less.

This post has been edited by meejawa: Mar 7 2009, 12:40 PM

Wow, that's a first time an insurance agent not promoting ILP.
Can explain more on the risk involved for those that don't understand?

Ppl who knew my posting in regards to insurance would know that I don't prefer ILP because of the returns (other investment vehicle can produce better), and I don't like to mix protections and investment. However, the risk factor would need you to enlighten us.

I am not promoting ILP because of the following reasons. But, I never say that ILP is not a good product. It is just that we need to take the risk of investment.


i) The return is not guaranteed. When I open my AIA sales illustration system and choose ILP, the first 2 pages show me a lot of beautiful figures for investment value. But, after I read the third page, I am surprised because all the figures just now are getting less and less and reach ZERO. I am sure that if I show it to my propects, they will be surprised and may consider to terminate all their ILPs purchased previously immediately if their insurance agents never tell them about this before. Some insurance agents tell us that we can get 9.5 % or 12 % annually for their ILP. Hello, these figures are just projection and estimation and are not stated in the policy contract. So, I prefer something that gives me guaranteed benefit although it is not much and not high. At least I know what I will definately get it when I need it the most no matter how bad the world economy is in the future. If we want to invest to get a high return, I will suggest investing in shares.

ii) Like what b00n have said, protection is protection and investment is investment. Don't mix. As we all know, the premiums of riders are not guaranteed to be fixed generally. After 10 to 20 years, the premium rates may increase. This may affect the investment value of ILP. If the world economy is in crisis like what is happening now, we may need to pay extra premium so that the ILP will not lapse.

iii) I am not an investment expert. So, I don't know how to explain the risk factor well. What I know is every investment involves risk. According to Warren Buffett, high risk is not knowing what we are doing. We buy unit trusts or ILP because we have no knowledge and there is a group of so-called experts there to help us to invest and monitor the performance. In other words, the risk for ILP and unit trust is very high if we don't know what we are doing. If we know what we are doing, why not we do our own research and invest ourselves in shares which give us much higher returns in the long run.

For the main differences between traditional life insurance and ILP, please read KCLau: Personal Finance Money Tips.

Please correct me if I am wrong.

This post has been edited by lcl832002: Mar 9 2009, 05:21 PM

Hie. I'm new here..I'm planning to get insurance soon and I've met agents from AIA, GE and Prudential. However I still can't find the one plan that suits me.

My budget is not more than RM 200/mth. I've been proposed both the ILP (by Prudential and GE)and traditional plan (by AIA). I'm concerned about having to pay higher premium for ILP when I grow older although its has ample coverage for now. As for the traditional plan, the sum assured is not that high (it's ok to me) BUT the hospitalization benefits is in a separated plan and the premium is burned every year. So. as I grow older, the hospitalization plan's premium will increase as well and to make it worse, it's burnt yearly! Btw, are hospitalization separated in ALL traditional plans?

I've done the calculations, the amount that I have to pay for both types of insurance till I'm 55 years old is around the same. The traditional plan proposed by AIA to me is a 'guarenteed payment till 55 yrs old only'. After 55 years old, they'll roll the $$ to cover my premium (That's wat I've been told by the agent). For ILP, there's no guarantee how long the $$ dat I've put in over the years will cover me after 55 yrs old. Depends on d economy at dat time, if it's really bad, then I may have to continue paying my premium, maybe at an even higher price.

I'm looking for a protection ONLY plan which is not burnt every year and the premium does not increase as I grow older...I'm not sure whether a plan like this exists..so I hope there's someone out there who can share some info with me. Many thanks in advance

Hi. I recommend you to buy 4 in 1 plan from AIA. It is not an Investment Linked Plan (ILP). I never suggest my clients to buy ILP due to several reasons. If you are 30 years old, male, non-smoker and working in office, the monthly premium is RM 182, around RM 6 per day.

RM 182 per month? 4 in 1 plan? RM 6 per day? What does it cover?
It actually covers the following things:
1) Whole life insurance - RM 100,000.
2) Medical card - annual limit RM 60,000 and lifetime limit RM 200,000, guaranteed renewability subject to reasonable terms and conditions.
3) Critical illness - RM 50,000.
4) Personal accident - RM 100,000 (death benefit); RM 1,000 per month up to 180 months (RM 180,000, serious disability income); RM 3,000 per year for each accident (medical reimbursement); RM 100 per day up to 730 days (accident hospital benefit); RM 5,000 (compassionate allowance).

If you are interested, you can call your AIA agent to know more about it...

I hope it helps you...

This post has been edited by lcl832002: Mar 9 2009, 11:34 PM

Thank you for your help!

Btw, I was worried about the news of AIG not doing well. I asked my agent and he said there's no need to worry about it as AIG is a separate company from AIA. But in d proposal letter that he printed for me it stated AIA as 'An AIG Company'. So, if AIG's having problems, shouldn't AIA be affected too?

This post has been edited by rednails: Mar 10 2009, 12:07 AM

I will not defend AIA if it is really unstable. Why? Because I am also a consumer. For your information, all the financial institutions including banks and insurance companies in Malaysia are regulated closely by Bank Negara Malaysia (BNM). So, BNM will not allow bankruptcy happening to them. If a financial institution really has to declare bankruptcy, BNM will protect our interests as consumers and policyholders.

Your agent is right. Even AIG bankrupts tomorrow, AIA Berhad is still very stable as it has been separated from AIG. Last year, AIA in Malaysia earned a pre-tax profit of around RM 200 million. The words "An AIG Company" will be deleted when AIA changes its logo again in the future. AIA is no longer called AIA. In the near future, AIA will be named as AIAG, AIA Group. So, AIA is a group by itself.

If you are still worried, please read my blog. There is a letter written by the CEO of AIA Berhad. Just click the link below...

This post has been edited by lcl832002: Mar 10 2009, 01:04 AM

If AIA Malaysia try to disassociate itself from AIG, meaning to say AIA Malaysia can no longer be proud of itself as one of the largest Insurance Company in the world.
And furthermore why put Manchester United team on the front page of AIA.com.my? It is AIG that sponsor it, not AIAG or AIA Group. Unless meaning to say, AIA Malaysia has not been 100% separated from AIG. Unless of course, "Separation" still in process.

OT: Please complain to your AIA IT department, www.aia.com.my MUST use IE to load.... @#$%^&

i think get a whole life critical illness policy
not a whole life with critical illness rider
this is where the critical illness cover will not expire after certain year

What is the point of being the largest in the world if AIA is not financially stable like AIG? AIA group has more than $ 60 billion of assets. What do you think about this figure? I myself don't care whether AIA is the largest in the world. What I care is whether it has branches in other countries. AIA can be found in Indonesia, Thailand, China, Hong Kong, Brunei, Vietnam, Philipine, Singapore, South Korea and many other countries.

When we say AIA is separated from AIG, we mean that AIA's financial management is free from AIG's intervention. AIA is like a son and AIG like a father. Now, AIA wants to marry. Does it mean AIA has nothing to do with AIG any more after marriage? No, the relationship between them is still there by law and nature. But, AIA has its own family now. So, it can make decision on any matters by itself. This is what we called AIA is independent in terms of management system.

In fact, all these things are not important. The most important thing is AIA is still earning a lot of profit. Last year, AIA's pre-tax profit is around RM 200 million. AIA still can get this amount of pre-tax profit last year when AIG nearly collapse last September.

About the website, AIA needs some time to do update.

I hope you get a better understanding on AIA situation now.

This post has been edited by lcl832002: Mar 10 2009, 01:23 PM

son and father .. son gettting marry .. i like this

Thanks for your praise...