Comments on: Investment-Linked Insurance Policy: Insurance Charges- Final Part

By: kevin

kevin — Sun, 23 May 2010 06:14:00 +0000

i think normaly when they withdraw existing product the old one is still inforce bcos that would be the contract btw the life assured n insurer. But for plans like family package, is subject to yearly underwritting decision. therefore our fren there experience this challenge back then. So is quite important if consumer will put more effort to check why some plan is so cheap compared to the alternative. there's a catch. is cheap bcos is paying for the risk premium for one particular year only.

By: kevin

kevin — Sun, 23 May 2010 06:11:25 +0000

PPl say ' there's no free lunch', this is rather so true. Agent earns their commission but they provide services in return. I am agent myself. We do not get indemnified by company for our costs whatever cost it be. We service customer from day 1 to old age. So is rather fair that we get our commission in compensation for these efforts.

By: kevin

kevin — Sun, 23 May 2010 06:09:12 +0000

If budget is allowing, traditional policy will be better for customer best interest, thats' my opinion. you can call me also if you need an insurance agent. =)

By: Yowchuan Lee

Yowchuan Lee — Thu, 03 Dec 2009 18:19:57 +0000

Thanks for pointing this out, Abert.

In most insurance contracts, the Insurer normally include this 'product portfolio withdrawal' clause, in a way it's to protect themselves from excessive claims arising from changing conditions such as changes in mortality rates, claim experience etc.

Usually, attached together with the notice of product withdrawal is an option to upgrade to the new product that has been launched to replace the product that will be withdrawn.

However, in most cases, the option to upgrade is the tricky part. It's either not communicated openly to the customers directly or the agents did not follow through with such replacements.

Also, such upgrades must not be subjected to any new underwriting guidelines because it is the Insurer that terminates the contract, potentially leaving the policyholder without any coverage.

By: Abert

Abert — Thu, 03 Dec 2009 06:52:53 +0000

Beware of claim by agent who sells medical insurance underwritten by reputable insurance companies (and claim that medical insurance has a long life span for public who purchased). We bought (and renewed) a family medical insurance plan for for past 4 years. Have used the policy in private hospitals, with guarantee by the insurance company. Then in Oct 2009, this insurance company sent me notice that it has stopped underwriting this medical policy upon the expirary of existing policy (Jan 2010) , i.e. I have to buy fresh new medical policy with extra loading on older age (we just retired) and existing medical ailments. I bought this policy 4 yeras ago from an insurance agent appointed by the insurance company. Have confirmed with this insurance company that the agent is appointed to sell the company's policy, yet we (public) cannot buy such policy directly from the insurance company. I approached PIAM who claim it is common for insurance company to stop underwriting medical policy after a few years of sale. Govt should direct insurance companies to l highlight to public on dateline when certain medical policy will be withdrawn (i.e stop underwriting).

By: SimpanDuit

SimpanDuit — Thu, 04 Dec 2008 06:06:44 +0000

Yes, its true. All I/L policies from any insurance companies operate in the same manner. So if you already comfortable paying premium thru “top-up” rider, just continue doing so if you top-up little by little, let say RM1,000-RM2,000 per top-up.

Unless you are dumping a whole chunk of RM10,000-RM20,000 into top-up rider, and let your I/L policy deduct its insurance charges little by little (monthly or annual mode), then u can afford to relax for quite some time untill cash value is almost low.