Do u read the HIDDEN CLAUSES in your Policy Documents?

I just found out that under Annexure for IL Health Protector, Sec 6, Policy Conditions, Sub Sec 6.7. Renewability Privilege & Sub Sec 6.10. Portfolio Withdrawal Condition, GE reserves the right to cancel the portfolio as a whole if it decides to discontinue underwriting this insurance product.

In short, it means that whatever funky terms u purchase today might be withdrawn in the future. That's the fine prints u need to beware.

Isn't it that when we buy medical plan, we want the plan to be around and cover us until age 70, 80 or 100, and the terms and conditions to stay the same no matter what is the status of our health conditions by then?

We will definitely be more healthier today than 30 years down the road. But when our medical plan that we assumed will cover us until age 80, changed midway, or worst still, been withdrawn altogether, who will pay for our medical bills during our golden years?

A check at Prudential Policy Document revealed that, Prudential don't have such clauses that take advantages of it's clients.

Under Part 6: General Conditions for Annexure PRUhealth, Sub Sec A, Non-Cancellable. The Annexure is non-Cancellable by the Company except where there is fraud or any circumstance that renders the policy null and void, provided always that all premiums are duly paid AND that the Policy remains in force.

In summary, Prudential cannot withdraw the plan sold to us, nor can they change the terms or clauses in the Annexure as they like.

The purpose of bringing this up is so that u guys aware what u are getting yourself into when u got yourself a medical plan. Most never read the fine prints; while some don't really understand them after reading. Your Professional agents should be able to highlight to u above points and go through the policy document with u after the purchase.

Know your rights. U have 15 days cooling off period to read the policy document, and if u are unhappy with the terms and clauses, go back to the branch office to cancel your policy, u will get full refunds of your premiums.

READ the fine prints, so that one day, no one will scream, "Insurance is cheating me...!"

PRUlife ready - Specially launch to cater to the needs of GEN-Y aged 19 to 25...

Specially launch to cater to the needs of GEN-Y aged 19 to 25...

According to the Key Findings from Product Focus Group (Agents, Customers, and the Public)

The Preferred Product Features are:-

1) Medical Plan with LOWER Co-Insurance

2) Auto-Upgrade of Coverage at age 30 - 35

3) Life Stage Benefit

4) Gratitude to Parents: Income to Family upon Contingencies

5) Saving Plan with EARLIER Breakeven Years

6) GOals Achieving Benefits

7) Unemployment Benefits - to ease Financial Strain During Unemployment

BECAUSE of the Above Findings..

PRUDENTIAL proudly presents PRUlife ready.

Goal Achievement Benefit

Get Rewarded with RM500 for achieving either one of your goal in life:

• Marriage
• Childbirth
• Buying House
• Doubling of Salary
• Travelling 10 Different Countries

Continuous Cover upon Involuntary Unemployment

With Attachment of PRUsaver*, your policy can be GUARANTEED to be kept inforce for 6 months or until you gets a new job, whichever is earlier. 

PRUlife Growth

A Plan that will Auto-Increase the Initial Basic Sum Assured (Death & TPD before age 70)with a fixed amount every 3 years start on 5th Rider Anniversary, for a total of 4 times. The increased sum assured will remain throughout the duration of the benefit.

• 1 unit: RM5,000
• 2 units: RM10,000
• 3 units: RM15,000
• Max units: 8 units

eg. Initial Sum Assured 20k, and the person attached 1 unit of PRUlife Growth.

On the 5th year, Basic Sum Assured increase from 20k to 25k; and on the 8th Year, from 25k increase to 30k; on the 11th Year, from 30k to 35k; and on the 14th Year, increase to 40k. The Sum Assured will remain as 40k throughout the remaining policy tenure.

PRUlife Income

Pays the sum assured as Yearly Income to the Family for 20 years when Life Assured dies.

PRUmedic Essential

• Daily CASH benefit for Hospital Confinement
• Pay DOUBLE cash benefit for ICU Confinement
• Covers DAY SURGERY and EMERGENCY ACCIDENTAL TREATMENT
• NO minimum CO-Insurance Amount

What's more?

• NO Co-Insurance after TPD and Critical Illness claims is approved.
• NO Co-Insurance for Treatment incurred in Malaysian Government Hospitals 

PRUlifestyle Saver

• GUARANTEE your Capital with Potential to Earn More if hold until end of Payout Period...
• All the upside for your capital, with none of the downside risks.
• Steady in volatility.
• As Annual Guaranteed Income for RETIREMENT PLANNING...

For more details, set up an appointment with 

PRUDENTIAL Professional Wealth Planner, Marvyn Choong, 012-5601227.

Why buy Insurance for unborn child as early as 18 weeks into your pregnancy?

先天脑积水... Infantile Hydrocephalus...

Pediatric hydrocephalus affects one in every 500 live births, making it one of the most common developmental disabilities, more common than Down syndrome or deafness.

^Source: http://en.wikipedia.org/wiki/Hydrocephalus

PRUmy Child 婴儿保单里的 PRUbest start 有特别保障这种先天疾病，在肚子里18个星期的婴儿就可以买。。

FYI, this Congenital condition is specially covered under PRUmy Child plan, with attaching PRUbest start rider, specially created by PRUDENTIAL for your unborn child as early as 18 weeks up until 35 weeks into your pregnancy and if you are between 18 – 45 years of age next birthday.. 

详情，参考：
For more info, refer:

http://www2.prudential.com.my/corp/prudential_en_my/solutions/child/PMCPESPBS.html

or contact MARVYN CHOONG 012-5601227

Insurance Returns are LOW

Common Belief:

Insurance Companies like to quote us high NON-GUARANTEED returns on their quotations and entices us to buy their plans... But in actual fact, the returns are very LOW...

First of all, Insurance Products are normally used as a Protection Tool.

In case you are planning to get yourself an endowment savings plan, then you must be very clear of the rationale of doing this. The main reason we would want an endowment savings plan is because of the certainty, capital protected nature, for retirement savings purposes, and finally, in the event that we are critically ill, insurance companies will continue to save on behalf of us.

If you are going after higher returns, then you should look at Unit Trust Funds, or Investment-linked Insurance Plan.

Hey, but my Unit Trust Consultant told me that PROTECTIONS and INVESTMENTS should not mixed together. So, should I just leave investment-linked plans behind if I solely want to invest?

For your kind information, PRUDENTIAL ASSURANCE (M) BERHAD are able to offer affordable insurance plans for the Malaysian market made possible by the introduction of Investment-linked plans in 1997. Premiums paid under Investment-linked plans are not burned. A pool of cash value was created through the investments for our insurance plans without us even noticing it. For those who have their Investment-linked Insurance Plans purchased in the 90s, their cash value would have ballooned and they are laughing all the way to the bank without understanding why. That is only for a mere span of roughly 10 years plus. They asked me, how come got so much even though they have made several hospitalization claims in the past 10 years.

My own plan was bought in Year 2000 April, monthly premium RM150, total cash value up to date is already more than 5 figures. Wow, it is as if, I get almost 70% of my premiums back. I was covered by PRUDENTIAL for nothing? I love you, PRUDENTIAL.

Now, of course we need to understand how the whole things work, and whether this stellar performance of the Investments is sustainable. In short, everyone would like to know how it works, and whether it will work for those of you who plan to join now. Will it be too late and missed the boat already?

First of all, for all Investment-linked Plans, the premiums paid by us are converted to UNITS. It operates similarly to Unit Trusts Fund (a.k.a. Mutual Funds), where it charges a one time sales charges of 5%-6%, and yearly management fees of 0.8%-1.5% regardless of whether the fund make or loss money. But, the returns for Investment-linked Funds are much more consistent and stable than Unit Trust Funds.

REASON?

Simple, let’s say, in the year 2005, you decided to invest into a Unit Trust Fund of your choice (FUND A). Then your Unit Trust Consultant will most probably advise you to invest monthly, instead of lump sum investment. He would have told you everything about the power of Dollar-Cost Averaging (DCA), which is rephrased to RCA (Ringgit-Cost Averaging) in Malaysia. Your investment value is closely related to how much units you have accumulates at the end of the day, as all money invested are converted to units, by referring to the unit price on the day that you invest. [To those of you who are not so well-verse with the term RCA, it simply means that since the market fluctuates monthly, it is better to invest monthly to take advantage of the low price in exchange for more units.]

So, heeding his advice, you decided to invest RM200 monthly into the fund. But so happen that there is a newly launch fund which offer free units, and lower sales charges of less than 5%, you decided to invest in the new fund (FUND B) instead. Then in the year 2007, market have reach its peak, will you withdraw your cash from the fund to take profits? Maybe yes, maybe no for some. Doesn’t matter. Will you continue to invest at the peak? Probably not. Suddenly, in the year 2008, market crash, will you still continue to invest the RM200 monthly? For majority, people will freak out and stop investing in 2008 although that is the best time to invest as the unit price have gone down and it is very very cheap. But most stop investing more money. What is making things worst, is when a lot of people not only stop plugging more money into the fund, they withdraw it. Let’s assume that the Fund Manager for FUND B is a fundamental long-term investor, and he had invested heavily to take advantage of the cheap market. But can he invest more when many of its Unit Holders are withdrawing? He might even be force to sell the shares at loss just to meet the withdrawing requirements of the Unit Trust Fund. Even if you have decided to continue invest the RM200 throughout the market low, you might face the uncertainty of losing more money because your Fund Manager are forced to sell at loss.

NOW, how is Investment-linked Fund different?

Everyone who bought an Investment-linked policy from PRUDENTIAL, will only have 3 non-shariah funds and 3 shariah-compliance funds to choose.

The funds are:

PRUlink Equity

PRUlink Managed

PRUlink Bond

PRUlink Dana Unggul

PRUlink Dana Urus

PRUlink Dana Aman

In fact, for PRUlink Managed, 70% are invested in PRUlink Equity and 30% goes back to PRUlink Bond. Same case for PRUlink Dana Urus which invest 70% back to PRUlink Dana Unggul and 30% into PRUlink Dana Aman. So, there are actually only 4 funds altogether, right?

When do we normally withdraw from our Investment-linked Insurance Plans?

We normally only withdraw our plans, either when we die, totally and permanently disabled, and when we are diagnosis with critical illnesses. Regardless of market directions, you still pay the premiums for your Insurance Plans, right? Will you cancel your Medical Insurance because the market has reached new height?

These are why Investment-linked funds are much more stable than Unit Trust funds in general. The demands are always consistent and keep growing because every now and then, people are buying PRUDENTIAL insurance and they are indirectly participating in above 4 funds. What about the supply then? Supply is already fixed and will only increase if there are demands. So, in short, with increasing steady demands, the units prices of the funds are definitely have only one direction, which is UP NORTH.

Are you sure that Life Insurance gives HIGH returns?

People always say that:

Insurance Companies like to quote us high NON-GUARANTEED returns on their quotations and entices us to buy their plans... But in actual fact, the returns are very LOW...

Well, you do not need to believe me. Go pick up a copy of July 2011 issued of PERSONAL MONEY magazine and look under the column of PRUDENTIAL PRUlink Equity Fund, you will be shock to find out that the 5 years average returns per annum is 12.57%. Now, who is misleading you with the statement that Life Insurance gives low returns?

Is 12.57% per annum for 5 years average consider as high?

Did I just explain that why the returns of Investment-linked are so stable and so…. HIGH?

Since PRUlink Equity launched in 1997 at unit price of RM1, it has never dip below that value even in the year 2008 when global market crash. I have no shares in company that sell or distribute PERSONAL MONEY, so for those of you who want to save a buck, you may view it for free at MPH, or borrow it from friends who bought the magazine, or alternatively, you may refer to www.bloomberg.com/apps/quote?ticker=PRLEQTY:MK for the latest price. Today it is hovering at the range of RM3.30 a unit.

Of course, past performance of the funds is not a guide to the future or likely performance of the funds, and it all depends on the investing experiences of the Fund Manager, and the market conditions.

Want to know how you may participate in this HIGH returns plan, contact me at 012-5601227 or email me at marvyncjj@gmail.com.