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?
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 : firstname.lastname@example.org
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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.
What we were normally told?
- All insurance products were approved by Bank Negara Malaysia, therefore, the price will be almost the same.
- As insurance risk is based on the country population and data from Government, the price will be almost the same.
- 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.
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