Everyone needs an insurance package. Ha… Ha… This statement is only true if you are like me – get a normal income. 95% of us fall in this category. Only 5% which are extreme rich does not need to have an insurance package. They can cover themselves if any unexpected incident happens. Since we are not in that group, do you know which insurance package to buy?
I did a very long research before buy an insurance package. I asked from a normal insurance agent to agency manager. None of them gave me a good insurance package that suits me. Some of the agency manager even wants to recruit me to be his agent. Ha… Ha… Too bad that most of the insurance package help insurance company earn money only. Therefore, I do not willing to ask people to buy…
Which insurance package I take? I chose a group term insurance package without any investment involved. I took MUTUAL LIFE PLUS 2 from Public Mutual with Great Eastern which renew yearly. I can take that package because I invest Public Mutual unit trust. There is a lot of group term insurance that available to lot of company. And most of them are cheap. For example, the package I take only cost me RM720 in the first year. It covers RM200,000 for natural death/TPD, RM400,000 for accidental death/TPD and RM200,000 for 36 critical illnesses accelerated. That is very cheap package compare to those insurance packages with medical card and investment link included. However, the price went up to RM950 per year after one year I took it. Ha… Ha… I am still fine with it because it is still cheap for that much coverage. Do you get a package like this?
It is funny that whenever I ask my friend how much coverage is their insurance package, none of them know it. They just buy it when somebody asks them so. And they do not think about it when they buy. As long as they have an insurance policy, they are fine. Ha… Ha… Are you one of them?
Most of the package suggested by insurance agent is around RM1800 per year. It includes life, medical and investment. However, the coverage is low. Example, I was given a package of RM50,000 life, RM40,000 critical illnesses, RM150 per month medical card and investment link for RM1800 per year. I forgot how much is the investment amount but I can assure you that you cannot manage the investment yourself. And most of investment package did not perform well. You cannot buy when the market price is low. And you cannot sell when the market price is up. No control at all. Therefore, you cannot earn more. Do you like this package?
Why we need an insurance policy? We need that to protect us from unexpected thing. Take an example, you just start working after school. You are young around 22 to 25 years old. You admitted in an accident and cannot work after that. Can your insurance policy coverage enough for you to spend for the rest of your life? With RM50,000, you will finish it in 4 years if monthly expenses are RM1,000 only. However with RM400,000, you will not finish using it until you die. Why? Keep RM400,000 in fixed deposit with 5% interest rate. You will get RM20,000 per year and that is RM1666 per month. Do you get my point?
Different age and situation have different insurance package to choose. A man with family should get a higher coverage insurance policy as he might be his family main income. Without his income, his whole family will in danger in economy. I am still single for the moment, therefore RM200,000 coverage is enough for me for the moment. I will increase it to RM400,000 or RM500,000 when I have family.
For short (what I did)…
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You got a point there. That’s why I kinda regretted getting investment linked insurance (because of the reasons you stated above). It’s better to get a cheaper policy just for coverage, and leave the savings for better investing.
Hi bro, you still can change now ma… Just waste some of your early investment lo…
Hi jayce,
good choice..(i was Public mutual advisor) most people do not know what they are buying
Hopefully… I did not make the wrong choice.
Jayce.. the coverage is high for MLP2…
I’m PB Mutual agent also..
Just be caution because the premium for this type of plan is not guaranteed. I think it increased from RM360 (for plan 1) to RM475.
Second is the company reserved the right to withdrawn this plan anytime (Of course the year which the premium already paid will still be covered). There might still have new plan (MLP3) with new premium…or might be not…and then you need to look for another plan to get covered…
my 2cents..:)
Hi Jerry, thanks for your advise. I also thought of that when I signed up this plan. Will find another one as backup soon…
Hi Jayce,
I got the same offer from my PB Mutual agent too. He said this is worth buying for high protection and why pay so much for investment link plan and you can save more on your own. There are some conditions below:-
1. The Life coverage is up to 70 years old whereby investment link can up to 100 years old.
2. The 36 CLR is up to 65 years old whereby investment link can up to 100 years old.
3. The TPD is up to 60 years old whereby investment link can up to 65 years old.
Well, do you think the coverage is sufficient up to age 70 for Malaysian? Accirding to Malaysan statistics, male will live up to 72 and female will live up to 76.
BTW, are you still with the MLP2 plan? I am still considering and may be go for it and top up with a lowest life plan comes with medical card.
@KC: Why do we need an insurance at the first place? We need protection, right? The higher the better when we are young.
When we old, do we still need coverage? Do we have enough saving to cover our living by that time?
For me, higher coverage at young is better. Those investment plan coverage will be very small in amount when old. Inflation… Get it?
I am interested in the Mutual Life Plus 2. But still need to find answers to a few questions.
If the insured is still alive at 70, does he get a cash value back?
No. Mutual Life Plus 2 does not have any cash value back. Even before 70. All the fee will be fully used for insurance. No investment so no cash value back.
Yes, you are right, Everyone needs an insurance package. We need to protect us from unexpected thing. Is it human or any vehicle but insurance is must and should.
Hi,
According to an advisor.. we need to have at lease min saving of RM5500 inorder to get RM100,000 premium coverage? So that you can renew it RM550 per month.
Please advice.
Yes, you need to invest RM 5500 in order to get RM 100,000 premium coverage initially. As for renew, as long as you are still Public Mutual holder no matter how much investment left there, it is fine.
Hello Jayce..
We need to invest with Unit Trust at least for RM5500 with cash investment OR does not matter even if we have EPF saving with amount > RM5500.
Please advice.
Thank you.
I think EPF saving investment can be counted too. But do double confirm with your agent.
Oh! ok then!! Let me check for that. Than you for good info sharing.
Hi, Jayce
What do think of insurance with investment link? Should we buy insurance for our children?
Good if you don’t know how to invest yourself. You can invest in children insurance too if you afford to do so. No right and wrong here.