Comments on: What is the First Insurance Policy We should buy for our Child? | Case Study

By: Michelle

Michelle — Thu, 22 Apr 2010 09:22:01 +0000

Hi
I tried to get the following amount but I couldnt get it. Can you advise me how to get 85? The figure I got is 491.45. Thanks

G = 513 – ( 67 + 292 + 72 )(5%) = 85

What I get is
= 513 – (431)5%
= 513 – 21.55
= 491.45

By: KCLau

KCLau — Tue, 09 Mar 2010 08:21:04 +0000

Hi Maha,

ILP will be suitable for your budget. Get some agent to talk to you about this.
Just let me know if you need me to recommend an agent to you.

By: Maha

Maha — Tue, 09 Mar 2010 03:50:17 +0000

Hi KCLau;

How are you? I would like to know about GE policies that suits my 1and 1/2 year kid. It’s the first insurance policy that I’m going to buy so please guide me. I want the policy to fulfill her education, H&S and yields good return when it matures. I know that there are quite a number of policies around but I don’t know which suits best. I’m not working and hope it wouldn’t hurt our budget (max RM100).

I believe as an insurance agent you can give me the best advice and recommendation . I do have a medical card which is recommended by an agent but the problem is he’s not being transparent when comes to investment link plan. For your kind information, he didn’t even tell us about the existence of investment link plan and he’s more interested in GPI. I got to know about ILP through your articles. In fact most of the knowledge that I gain is through your valuable articles.

I hope you can guide us.
Thank you in advance.

By: KCLau

KCLau — Wed, 14 Jan 2009 09:57:30 +0000

Hi Zulkarnain,

It is actually like what you think – simply apply the buying/selling method like unit trust terminology.

In this case, the RM7034 is the available investment value (it fluctuates according to unit price). When it is time to deduct insurance charges on the policy, some unit will be deducted from the investment-linked account.

By: Zulkarnain Ahmad

Zulkarnain Ahmad — Wed, 14 Jan 2009 07:08:59 +0000

Hi KCLau,
I have a problem with this sentence, “Great Eastern will deduct that amount from your cash value (RM7034) by selling off the unit equivalent to the value of RM434″. I just wondering how much this policyholder will get actually. Maybe you could explain on how the amount of RM434 involve here. This is because I thought its simply apply the buying/selling method like unit trust terminology. Thanks for your help.

By: Financial Consideration for New Parents in Malaysia | Personal Finance Money Tips

Sun, 26 Oct 2008 22:01:01 +0000

[...] Depends on your budget, you can start a plan as low as RM100/month. [...]

By: Christopher

Christopher — Wed, 06 Aug 2008 16:03:54 +0000

Thanks, KCLau for your frank advice. You are absolutely correct. GE’s medical card premium is about 1/3 of Prudential’s medical card. One is guaranteed renewal with conditions but the later without conditions. It is really difficult to decide which one is better. I am also in a dilema. Having said that, I finally decided to surrender my PruMedical card and bought a GE one instead not because PRU was not good but mainly due to the premium difference of 66%. But I loose having the assurance that my policy will continue to be available in the market.

By: KCLau

KCLau — Wed, 06 Aug 2008 04:24:28 +0000

Hi Christopher,

I have to respect you being able to compare most of the medical cards. What you have found out is correct (at least to my limited knowledge). To my knowledge, every medical card has its pros and cons. Some with greater features, but the premium increase more frequently, maybe due to high claim rate. Some are more stringent when paying out claim, but are able to maintain the premium as reasonable as possible (GE is in this category).

There will be none if you want to get the best medical card, with the cheapest premium. If this product exists, it would have dominated the market. A good practice is to:
1. Buy the first that suits your needs (agent is important in this case)
2. Top up by buying medical plan from another company in the future when you feel you need to.

Hope this help.

By: Christopher

Christopher — Mon, 04 Aug 2008 12:16:55 +0000

Hi KC Lau,

I have been comparing the various medical cards offered by our local insurance companies and found that not all medical plans are guaranteed renewal.

GE Life – guaranteed renewal subject to product still available in the market.

Prudential – guaranteed renewal with no conditions attached

Manulife – no guaranteed renewal.

AIA – guaranteed renewal.

I have called up GE and they seem to be unconfortable with my query. Although GE has been transferring existing policyholders to the newer product in force but in terms of law, GE has the right to terminate this GE Great Healthcare Card in the event that they do not offer such product in the market. In such cases, wouldn’t it be that consumers will suffer at that point.

KC Lau, what is your personal view on this matter ?

Appreciate your frank comments.

ChrisKon

By: Greatlife Portfolio Insurance - Bestselling Regular Premium Investment Link Plan (Great Eastern Product Review)

Sun, 09 Sep 2007 23:01:37 +0000

[...] For the insightful analysis of the quotation, you can refer my previous post that show how to calculate the insurance charges and cash value. [...]

By: Auto Insurance » Auto Insurance July 30, 2007 9:28 am

Auto Insurance » Auto Insurance July 30, 2007 9:28 am — Mon, 30 Jul 2007 13:31:56 +0000

[...] What is the First Insurance Policy We should buy for our Child … h) I understand that some plan will be like auto payment of premium after some time of servicing. Is this plan works in the said manner? The answer is: As long as your policy cash value is enought to pay for the insurance charges and … [...]

By: wp

wp — Mon, 30 Jul 2007 10:41:55 +0000

This is the best explanation that I have ever seen. Good work, KC!