Beruflich Dokumente
Kultur Dokumente
Table of Contents
PREFACE ................................................................................................................ 3
INTRODUCTION ..................................................................................................... 6
2
Smart Guide to Insurance Planning
Comprehensiveness of Coverage
security. There are a few facts that we need to know when it comes to setting up a
First, we do not know which door or window the burglars will break in from. If we
have something they really want, they might even dig a tunnel right into our safe.
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A good home security system takes into account every potential break-in channel.
Every door and window in the entire building that might give the burglar entry into
So, if a good security system keeps your windows and doors from burglar
infiltrations, what should your insurance policies do to ensure your personal risk is
well taken care of? In the next few chapters in this guide, I would like to share with
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Smart Guide to Insurance Planning
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figures. The annual & lifetime limits are deducted as you make claims.
means that you as the policyholder need to pay a certain percentage from the total
claims made.
For instance, if you are hospitalized for 3 days, and use up a total of RM 6,780.24.
Assume that the co-insurance of your medical package is 10% with a cap of RM 500,
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Smart Guide to Insurance Planning
Case Study
For a healthy, non-smoking individual who subscribes to an RM 200 Room & Board
medical plan, with an annual limit of RM 120,000 and lifetime limit of RM 400,000,
the table below shows the premium amount for different age groups.
(RM)
25 580 564
35 588 566
45 906 909
55 1,463 1,294
65 2,960 2,824
According to the table above, a 35-year-old male would need to pay a yearly
premium of RM 566.
The next section talks about the importance of Critical Illnesses coverage, and why
it is important in your risk management strategy. Unlike the medical plan coverage
mentioned here, Critical Illness coverage is where all the common ¶big-tickets·
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Smart Guide to Insurance Planning
As witih any whole-life policies with cash value, you can also apply for a policy
loan.
Total Permanent Disability (TPD), you will be paid the Insured Amount. However, if
you are diagnosed with Critical Illness, the premium of the endowment policy will
In the case of the father setting up the endowment policy for his child, the
insurance component would work slightly differently. If the child should pass on
first or suffers from TPD, the same thing applies- the Insured Amount stated in the
(QGRZPHQW3ROLF\ZLOOEHSDLGRXWLQWKLVFDVHWRWKHIDWKHU/HW·VVD\LIWKHfather
cRPSDQLHV·UHVSHFWLYHriders that
are attachable to the endowment policy, as well as understand the terms and
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Smart Guide to Insurance Planning
with.
:KDW·VDQLQYHVWPHQW-linked policy?
insurance policy or variable life insurance policy. In the Malaysian context, I will
An ILP is basically a hybrid of 2 financial products- a unit trust and the good old
insurance contract. Why did the insurance industry decide to clone such a beast in
Consider this scenario: not too long ago, the unit trust industry was born. But
before anyone knew anything about it, everyone had already accepted the idea of
saving and accumulating their wealth in their insurance policies. And LW·V YHU\
difficult to change WKH SXEOLF·V PLQGVHW RQFH WKH\·YH decided about something.
Whenever the unit trust industry preaches about the potential returns, the public
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Smart Guide to Insurance Planning
Starting from the right, we have Personal Accident insurance, one of the most
affordable and also the most important coverage in a risk management portfolio.
Next, we have Medical and Hospitalization benefits. A medical card can be very
handy these days, especially with the rising cost of health services.
important. With the introduction of Investment-linked insurance, you can now add
various types of riders into the policy, making it a very versatile risk management
tool.
On the far left is the Endowment Plan, the least important insurance policy-. This
products on the right, which you should prioritize. This is just a guideline, and you
49
An Overview of Insurance Policies (cont'd)
Up to 87 years old Death Benefit Comes with cash value. Premium Policy immediately void after claim made.
invested in company at minimal risk.
Total Permanent Disability Benefit Waiting period of 60 days usually
applicable, so only claimable for covered
36 Critical Illnesses events 2 months after policy inforce.
Critical Illness
12-year Waiver of Premium Policy focuses on generating cash You can choose to withdraw money every
15-year value and providing minimal 3 years but doing so reduces total payout
18-year Payor Benefit insurance benefit. when endowment plan matures.
21-year Premium invested in company at
24-year minimal risk. You can apply for Policy Loan - can give
27-year you loan amount of up to 90% of your
30-year existing cash value. Loan interest rate
considerably lower than that of prevailing
bank loans.
Endowment Plan
Smart Guide to Insurance Planning
First you have the Contractual Terms at the foundation. This is where all the
important clauses are listed, such as who the insured person is, the beneficiary of
the contract, commencement and maturity dates and the benefits covered. For
section.
On the side of the Contractual Terms is the Riders section, where all additional
riders that you have chosen to complement with the core benefits will be listed.
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Smart Guide to Insurance Planning
Financial Strength
below show the financial strength of life insurance companies in Malaysia between
2006 and 2007, from the company with the most assets to the company with the
least.
Net Investment
Total Assets
s/Liabilities
Income
Company 50¶
50¶
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Smart Guide to Insurance Planning
In this chapter, I will go through the 36 types of illness that are covered in most
critical illness policies in Malaysia. For your easy reference, there is a section
labeled Further Explanations for terms that are not so layman-friendly. Also, a
section labeled Wallet Damage! shows you the range of how much it would need for
italics.
(c) Elevation of the cardiac enzyme (CPK-MB) above the generally accepted
Diagnosis based on the elevation of Troponin T test alone shall not be considered
Wallet Damage!
Treatment for heart attacks can range anywhere from RM10,000 to RM30,000.
(2) Stroke
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Smart Guide to Insurance Planning
source are included. The diagnosis must be based on changes seen in a CT scan or
symptoms due to migraine, cerebral injury resulting from trauma or hypoxia and
Further Explanation
Ischaemic Stroke: This type of stroke occurs when a blood vessel in the brain
develops a clot and cuts off the blood supply to the brain. A blood clot that forms
in a blood vessel in tKH EUDLQ LV FDOOHG D ¶WKURPEXV· A blood clot that forms in
another part of the body, such as the neck or lining of the heart, and travels to the
brain is called an ¶embolus· Blood clots often result from a condition called
¶atherosclerosis· the build-up of plaque with fatty deposits within blood vessel
walls.
Source: www.clevelandclinic.org
An ischaemic stroke is the death of brain tissue (cerebral infraction) resulting from
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Smart Guide to Insurance Planning
This refers to the actual undergoing of coronary artery by-pass surgery by way of
Further Explanations
It is a major operation, and is only used when other diagnostic techniques such as
information.
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Keyhole: Technical advances now make it possible to perform surgery with smaller
incisions and less tissue disruption than occurs with traditional surgery. Surgeons
can insert tiny lights, video cameras, and surgical instruments through
keyhole-sized incisions. The surgeons can then perform procedures using the
Wallet Damage!
75