Comments on: Beware of the Worst Advice from Insurance Agents

By: martin

martin — Wed, 02 Jun 2010 10:14:43 +0000

beware of those spm level and “Pasar malam” agents which knew nothing in finance. they just ant to be get rich in selling insurance policy and they never care about your financial status.

I be cheated by a useless Great eastern agent and it is sucks that i have to paid he for his low quality service.

By: KCLau

KCLau — Fri, 30 Apr 2010 09:39:02 +0000

Nice tips. As long as you don’t mind spending the time to study and past the exam, this can save you some money.

By: netmask8

netmask8 — Mon, 26 Apr 2010 04:57:02 +0000

Greetings & G’Day,

1. Take insurance exams & join as an insurance agent.
2. Ask your senior insurance manager about ALL your doubts/ questions abt insurance.
3. Plan/ Buy own insurance plan for your family and yourself using your own insurance agent membership.
4. Before your insurance agent membership got terminated( usually 6 months with no sale figure), buy another insurance plan for your family or yourself.
5. Example :- Jan 2010 Buy Life Endownment Plan, May 2010 Buy Life Plan for Wife, Oct 2010 Buy Life Plan for Children, March 2011 Buy Personal Accidents(PA) plan, Aug 2011 Buy 36 critical illness plan for Yourself, Jan 2012 Buy Medical Card for Wife …etc ( Medical Card, Investment-Linked Plan, Saving Plan )..

You may SAVE commision for 2 years from the premium paid.. May apply this on unit trust too.. Take unit trust agent exam, learn from senior unit trust mgr and buy own unit trust.

Have a great day. Little savig sometime helps.

By: KCLau

KCLau — Mon, 26 Apr 2010 02:56:16 +0000

Technically, insurance companies can’t “merge’ your policies. Death and 36 critical illnesses coverage is claimable on the total amount purchase, regardless of how many policies you have. So there is no trouble with that.
I suggest that you talk to a trusted insurance agent and have him/her analyze all your policies. I can introduce a trustworthy agent to you if necessary.

By: Sid

Sid — Sun, 25 Apr 2010 16:58:28 +0000

hi, i’ve bought a couple of policies from a friend but recently when i was looking through statements i noticed that ive been paying for duplicated policies (e.g death and crisis benefits in both the policies and many, many riders)
Should i merge the policies or surrender the newer one and modify the older policy to add the necessary policies…..in the case of merging will the premium rate be higher?

By: Lyn

Lyn — Wed, 07 Apr 2010 06:00:36 +0000

Thank you very much for your prompt feedback

By: KCLau

KCLau — Wed, 07 Apr 2010 05:57:27 +0000

Hi Lyn,

I think you are planning it fine in this way.
You won’t be affected if you don’t plan to increase your insurance premium on the same investment-linked policy.

By: Lyn

Lyn — Wed, 07 Apr 2010 05:55:02 +0000

What i am thinking of is to reduce the premium on this policy, and I can work with the additional premium to puchase a traditional plan. I hv addition RM245. (RM345- RM100). If by RM100 i can still enjoy the same protection, I can keep it this way , right? The impact wld be my investment value will be lesser since I am already paying a lower premium, right?

Quote from your previous reply:
“So if you reduce the premium, you will have to go through the first 6 years “commission period” when you increase it later in life.”

Will I be affected shd I not increase my premium nor sum assured in future?

By: KCLau

KCLau — Wed, 07 Apr 2010 04:47:23 +0000

You see, insurance agents got the commission on the first 6 years.
After you’ve paid the premium for 6 years, the 7th year onward all your premium paid will be fully allocated to your investment -linked fund.
So if you reduce the premium, you will have to go through the first 6 years “commission period” when you increase it later in life.
I would say if that extra premium you paid doesn’t affect your cash flow, just keep paying to make it a form of force-saving.

By: Lyn

Lyn — Tue, 06 Apr 2010 21:55:40 +0000

My husband policy with Prudential was a protection of only RM120k, with a lot of unnecessary riders. He is paying RM345/mth since 2005. So i am asking the agent to reduce the premium from RM345 to RM100. And surprisingly she says OK and it is do-able. So any impact to my husband policy?

By: mike

mike — Mon, 27 Jul 2009 02:39:27 +0000

If you feel not 100% happy about the existing one in terms of coverage, protection, etc.
Go for better insurance company, with better protection or plan with the same premium.
The important is the value of your money and the protection for your life.

By: KCLau

KCLau — Fri, 05 Sep 2008 04:47:08 +0000

Normally, you can change the policy type within one year

www.kclau.com
Via iphone (Ã§ÂˆÂ±Ã§Â–Â¯)

By: yhchong

yhchong — Fri, 05 Sep 2008 04:38:09 +0000

I heard we can 'switch' to another policy type within the same insurance company if we are not 100% happy about the existing one in terms of coverage, protection, etc. So instead of lapse the existing, we could do a 'switch' . Is this true?

By: KCLau

KCLau — Sat, 10 May 2008 06:02:35 +0000

@10ha,

I don’t think it will reset your policy. I am sure that Great Eastern policies won’t be reset like you said for premium reduction. If it is a traditional policy. it will be partly surrendered. If it is an investment-linked policy, it works about the same too.

If you are paying 10% of your salary for insurance protection that’s over your need, it might be over insured. But I doubt that you will be over-insured. Normally if someone pay a lot more than 10% for full protection plan, it might be the case of over-insured.

By: 10ha

10ha — Fri, 09 May 2008 16:37:16 +0000

i’ve asked my agent, he said that to reduce premium, it’ll reset the policy again, and based on current age, which means the premium is higher in a way.

I want to ask how to determine whether a person is over insured, cause currently i’m paying rm300+ monthly premium, which is equivalent of my 10% salary.

By: Paying Life Insurance Premium: The Smartest Form of Saving | Personal Finance Money Tips

Sun, 04 May 2008 23:03:39 +0000

[...] If you’re new here, you may want to subscribe to my RSS feed. Thanks for visiting! Paying premium for life insurance policy as long as possible is one of the best form of saving you should have. I am talking about your old policies, your existing policies which are still in force now. Perhaps you stopped paying the premium because it reaches the “critical years”, or you plan to lapse the existing one in order for you to afford new insurance plans. But don’t be stupid. Beware of the worst advice from insurance agent. [...]