Lady Specific Insurance – Do you really need it? ~ Gimmick or Necessity?

The insurance product is getting more complicated while it is already very confusing for many. Lady Specific Insurance is one of it. So, is it a necessity or rather just a gimmick from insurance company?

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While I was “researching” to get more information about Lady Specific Protection plan, I found this article on Focus Malaysia and I believe it has addressed those issues that I thought of highlighting. Hence, I am sharing this article while adding some opinion of mine.

Original article : Lady’s insurance – gimmick or necessity?(http://www.focusmalaysia.my/Income/lady-s-insurance-gimmick-or-necessity)

Few points as highlighted in the article:

1. Overlapping Benefits

Most of the event has been covered by Critical Illnesses Plan and others like snatch thief, kidnapping & etc would had been covered by Personal Accidents.

2. Reconstructive Surgery

Yes, it will not be covered by most of the Hospitalisation & Surgical Plan (Medical Card), but again, you will get lump sum payment from Critical Illnesses Coverage or Personal Accident Coverage.

3. Special Events

Cash Payout for special events such as marriage, child birth & etc. This would be more to a “feel good” as the amount may not be significant in most of the cases. But maybe some will feel it is better than none.

4. Pregnancy & Maternity Benefits

This may be the one fine part of the Lady Specific Protection Plan that makes the most sense of all. – Maybe this is the part that should help you to really decide whether you need a Lady Specific Protection Plan.

In conclusion, Lady Specific Plan is more to a luxury option. Everyone should be well planned for the four core segment of Personal Insurance (Death, Hospitalisation, Critical Illnesses & Personal Accident) before considering this extra option.

Yes, many may not agree with this. Feel free to provide your opinion.

Feel free to email us to discuss further : ethanteh@moneysense.com.my

WhatsApp : https://bit.ly/2nRkxwD

Prices for Insurance Products from different companies are almost the SAME – True?

Remember many years ago, information was not easily obtained, everyone told everyone that insurance premiums for insurance products are almost the same even if it is from different companies. In fact, even today, life insurance information is still relatively not easy to obtain.

Insurance Comparison

What we were normally told?

  1. All insurance products were approved by Bank Negara Malaysia, therefore, the price will be almost the same.
  2. As insurance risk is based on the country population and data from Government, the price will be almost the same.
  3. Those Actuaries who responsible for product pricing is from the same pool of people, therefore, the prices are very near to each other.

However, although we don’t know how they actually structure the price for insurance products and it will not be our matter of discussion for today. What we would like to highlight here is the comparison of a product from 2 major companies in Malaysia, and it might surprise you that the price is differs by approximately 60%.

We have recently conducted product features and pricing comparisons after the new regulations by Bank Negara Malaysia on Minimum Allocation Rate (MAR) and Policy Sustainability requirements on Investment Linked Products. The comparison was done with the nearest comparable features from different companies with same profile of client, same coverage and same number of year of sustainability. (Up to age 80)

As a summary, we found no evidence of significant increase in Cost of Insurance, premiums or other charges besides the Surrender Charges if you choose to surrender the policies within the first two years.

If you would like to construct a insurance plan for yourself from an Independent Financial Adviser, feel free to contact us.

WhatsApp : https://bit.ly/2LX727W

email : ethanteh@moneysense.com.my

Navigating Through Turbulence

What is Turbulence in Financial Management? Turbulence is disruption to your current plan (Example: during economy downturn), which may cause you to start worrying. It is indeed great that you are aware of the condition and start worrying. So, what should you do?

Airplane Turbulence

Normally during this time, you will see and hear that many pulling out from their investment as the investment is making lost.

Whenever we come to this situation, I always recall a story shared by Mr Appelles Poh many years ago:

Airplane in turbulence

A: Assuming you are on a plane and suddenly the plane going through turbulence, what will the crew or pilot ask you to do

B: Get back to our seat and fasten seat belt.

A: Would you follow the instruction?

B: OF COURSE!

A: What if there is a passenger who doesn’t follow instruction and run into the cockpit to take over the role of the pilot? Would you do that or allow that?

B: NO! NEVER! It is best left to the pilot.

A: Would you jump off the plane? Since it is going through turbulence?

B: NO! The chance is better to stay on the plane.

A: Finally, if the pilot says the plane will crash, would you jump with or without parachute?

B: Of course with parachute.

After going through this story, we can easily relate:

1. Discuss with your pilot for your financial plan.

2. Decide if it is still on track? Do you need a alternative plan? Or the disruption is just temporary and we shall navigate it through?

3. If you really need to terminate the plan, what is the risk mitigation plan (your parachute)?