Restructure My Insurance

slowlee, first of all, have you established the exact quantifiable reasons you still need 500k Life + 500k CI going forward?
If yes, share with us how did you reach that figure of 500k x 2?

slowlee, let's get on the same page here
SA = sum assured = life insurance = death/TPD coverage = 500k -> use to pay off 300k mortgage
But why did you also say "choose 500K due to medical cost in the market'?
Medical insurance (medical to cover medical cost) is a totally different thing from life insurance
Also CI = critical illness insurance is totally different from medical insurance.
Just to ensure you are not confused with the 3 different coverage :) 

slowlee, 

For the medical cost, I meant for CI, I also chose CI=500k due to the market medical cost to treat cancers.

The CI coverage does not really correlate with the cost to treat cancer. Instead it is the lump sum living costs that you anticipate you will need in case you got hit by any CIs, like cancer. 
 
Whatever medical treatment for cancer should be sufficiently covered by medical cards. 
 
THat being said, for people who don't already have medical card, then of course the CI coverage is used for BOTH medical costs and living costs.
 
So, do you want to rethink about your required CI coverage?

For CI coverage, you want to estimate a 2 - 3 years worth of your current living expenses. Of course, the higher the coverage you need, the higher the premium is.
 
When is your birthday btw?

slowlee
 
Do you really need early CI? Consider, for 200k ECI, you can probably get 350k+ normal CI for the same costs (ECI is expensive).
 
Why do you need RM 300 deductible specifically? why not 0?
 
why do you need PA 200k with weekly benefit option?

Hi Erika, my thoughts are as follow. Please feel free to make any suggestions/changes, my understanding of insurance is lacking and might have been influenced by agents.

For Early CI, it seems to cover diabetic or joint related illnesses (Arthritis etc) which may have higher chance to be diagnosed. I read that normal CI covers only late stage cancer etc conditions. There is no cancer history within my family, but my grandmother died of Diabetes complications. I enjoy hiking regularly and would like to have some protection over knee condition. Perhaps a small portion of early CI like 50K is enough (in addition to 200K normal CI)?

For medical card deductible, I am thinking to reduce some cost of insurance, RM300 deductible is an amount I am comfortable with paying myself. Since I am generally healthy, I do not foresee much claim and would like to try save some medical insurance cost.

For PA, while I can manage my own health, I cannot manage chances of accident. I was injured in a past car hijack incident and got some PA compensation helpful for physio treatment that time (unable to work but no hospitalization). Since I am no longer employed now (freelancer), I would like to have PA with weekly benefit option. In case I am unable to work temporarily due to accidents, the weekly benefit could be useful.

slowlee
 
It is true that ECI covers more than CI, but you do have to ponder over this - is the amount you are buying (50k ECI) is going to be life-changing 30 years from now when you are 70+?
Perspective. If you stash 150/month under your bed starting now for the next 30 years, you will have 54k by the time Arthritis likely to kick in. 
What if you just 'invest 150/month' in the same time period for only conservative 4%/year? You'll have way more than just 50k to cover for the 'old-age' medical conditions you are worried of start to open.
For 200k CI, that is reasonable because terminal illness can happen next year, or 5y from now. 
 
Putting in 300 deductible really not gonna make a lot of difference in reducing the costs. If you want to move the needle in costing, suggest you consider deductible level of 5k to 10k range per year. That will reduce the cost of the medical card component from 30 to 40 percent. 
 
For PA, our experience shows that you might be better off buying the PA you need from general insurer, instead of life insurer, because general insurers can offer them at a relatively cheaper premium.  You don't need to 'build that into' your life policy.

Hi Erika, thanks so much for the points shared, it’s enlightening! I would like to change the requirements as follow.
– SA RM300K
– CI RM200K
– Medical Card – R&B RM200, deductible RM5K, with incentive for no claim.

Would you also provide quotation for general insurer PA?
– PA 200K with Weekly Benefit Option

welcome. please give us time up to next Tue for the comparative quotes to be ready for your perusal. Will update here again

slowlee, do refer to this: https://askcf.com/slowlee-quotation/
 
The best medical card that has this 5k deductible feature is from Allianz and HLA. So we shortlist these 2 insurers, and on top of the medical card, we added in the Life & CI coverage you need.
 
Let us know when you have questions.

Sorry for the delay, need some clarifications below.

1. Ratio of fund chosen: 100% in HLA Venture Managed Fund

– I noticed this fund has got 50% FD in it. You recommended this fund, is it to balance the risk for my age group?

– If solely for performance, which fund is the best so far for HLA?

– Is it recommended to switch fund along the way or do we just passively stick to one?

– Should we look at insurance companies fund performance to decide which company to buy from, or is it negligible, and premium saving is more important?

2. End of initial coverage at Age 80 and Extension Period with stepped premium for every recurring band of 5 years

– Noted that the plan will last till age 80. If we survive after age 80, do we just use the surrender value upon age80 maturity to cover any medical/CI needs after 80? There is no need to subscribe/extend the medical plan due to the high medical price for age80 right?

3. HLA seems to be getting 2.9 out of 5 on their FB review with many complaining about the claim process – https://www.facebook.com/hongleongassurance/reviews/?ref=page_internal”>https://www.facebook.com/hongleongassurance/reviews/?ref=page_internal</a&gt;. Similarly for Allianz with 3.1 our of 5 on FB review https://www.facebook.com/AllianzMalaysia/reviews.<br”>https://www.facebook.com/AllianzMalaysia/reviews.<br</a&gt; />- Based on your claim experience with these companies, is it fine to proceed buying insurance from them?

– I noticed that AIA/Prudential did not enable their FB review function, it is not possible to compare. Just want to get some feedback, that the claim process is fine and fair with any of these HLA/Allianz companies right?

slowlee
 

1. because you are not 'investing', so it really isn't productive to 'manage' the funds your ILP is invested into. Stick to one that is 'in the middle ground' - balanced fund. It means the fund manager have the flexibility to switch between equity/fixed income versus you switching between equity/fixed income if your policy is invested in pure equity or pure fixed income funds. You must understand in the investment world, high return comes with high risks. A 100% equity fund can swing 12% in a year, it is likely to swing -12% too. A balanced fund volatility is lesser, say +6% - 6%. Also you may have mistakenly assume 'fixed income' as FD but fixed income is actually referring to bond. Finally, if you were to compare the same category of funds among insurers, usually they have similar historical returns.
2. This can be easily understood when you understand the Sustainability Concept, explained here and here
3. Frankly, you are over-analyzing this inaccurately. From our experience, all insurance companies can be equally good or equally bad depending on how thorough you are in the health declaration during application process. This is the determinant, not the insurers themselves. People who complain even up to BNM level are usually the ones who did not go thru application process properly because agents rushed things. Insurance is a highly-regulated industry, if insurer reject claims, it means, legally they really do solid grounds to do so. The analogy to this is - some people can stand spicy food, some people can't. People who can will give 5 star rating to a spicy fish curry, but people who can't will give 1 star rating. It has nothing to do with the dish itself, but with person tolerance to spiciness.