Life Insurance Guide

 Buying life insurance Quick Guide

1. Life Insurance

   a. Why do you need life insurance?

• To provide adequate fund for major medical treatment
• To protect your loved ones in case of death or disability to work
• To adapt to changing life style due to unexpected event.
• To protect wealth.

   b. What kind of cover will you get?

• Lump sum payment for death and Permanent Disability
• Lump sum payment due to 36 critical illness ( Heart attack, Cancer, Kidney Failure..)
• Lump sum payment for death and Permanent Disability due to accident
• Medical card with high annual limit and life time limit
• Hospitalization daily allowance
• Lump sum payment due to surgery

   c. What is investment link plan?

        With Investment link plan, your premium will be invested in funds decided by you. While still

         paying for your insurance charges, policy holder will gain better cash value in the long run.

2. Critical Illness?

    a. What are the categories of critical illnesses?

        There are 3 stages, early stages, intermediate stages and advanced stages. While most people find 

         adequate to have cover for advanced stages critical illness insurance cover, few people started to

         realize the importance of early critical illness cover. Early critical illness cover provides lump

         sum payment to after been diagnosed. This provides fund to seek early treatment since early

         treatment will result higher chances of recovery than the advanced stages.

    b. What are the list of early critical illnesses and how much will be paid?

         

        For early stage, 30% of the sum insured will be paid and for intermediate, 60% of the sum 

         insured will be paid.

    c. What the advanced stage stage critical illnesses?

       

3. Medical Card:

    a. What is room and board allowance?

        The amount of room rate that you are entitled to when hospitalized. For example if your

        room and board benefit is RM200, you are entitled to hospitalized in room with rate of RM200 or 

        lower. If the room cost more than RM200, you have to bear the excess.

        For other insurance company, some of them impose co-insurance if you hospitalized in room 

        higher than your benefit. Example, if your room and board benefit is RM200, but you are

        hospitalized in room rate of RM300, you have to bear 20% of the total medical expense cost.

        For Prudential especially the PruFlexi Med, if your room rate is lower than your benefit,

        any excess will be paid to you.

    b. What is the annual limit? Life time limit?

        

        Annual limit is the limit that you can used for your medical expense on annual basis. 

        Lifetime limit usually is 10 times or 20 times the annual limit. 

        

        Higher lifetime limit is very useful when you are in continuous medical treatment such as

        kidney dialysis.

    c. What is deductible or co-insurance?

        

        Deductible or co-insurance is the amount that you have to bear first for your medical treatment.

        You also can opt for ZERO-DEDUCTIBLE, but usually medical card with deductible or 

        co-insurance is slightly cheaper.

       Example on deductible usage, if you have RM300 deductible, when it comes to your medical 

       expense, you have to bear the first RM300. The excess of the eligible benefits will be paid by                Prudential.

       Why deductible? Your insurance price will be slightly cheaper and you can allocate this money

       to other benefit such as Death benefit or Critical Illness.

       Why co-insurance? Your insurance will be cheaper. Plus, you are entitled to No-claim bonus

       for each year you dont have any claim. This money will be allocated into your Investment Unit

       Account.  

    e. Who are the panel hospitals?

        

        Prudential has many panel hospitals where you can view in the Prudential website.

    f. Do i need to pay first?

       Once you are in hospital, you have to pay certain amount of deposit ranging up to RM300. 

       When checking out, if there no un-eligible expense, the full amount of deposit will be

       returned back.

       WITHOUT MEDICAL CARD, you initial deposit could range up to RM5000 depending on the

       treatment you seek.

    

  

4. Personal Accident Insurance?

    a. What is personal accident Insurance?

  

        Its provides lump sum payment if death or permanent disability occurs due to an accident.

    b. What are some of the coverage?

    

        For any loss of body limb, a percentage of the total sum insured will be paid accordingly.

5. Investment link insurance?

    a. What is it?

        Insurance these days will allocated your premium to investment fund to gain better cash value.

    b. How will my money be invested?

       They are at least 10 funds available, ranging from Equity, Bond, Balanced or Syariah approved.

  

    d. Can I withdraw my units?

        

        Yes.

5. Hospital daily allowance?

    a. What is it?

        This is an optional benefit, where Prudential will pay you by cheque if you are hospitalized 
         everyday(more than 6 hours) in a hospital. It start with RM50 daily with additional amount
         if you are treated in ICU.

         With another optional benefit, you will be paid by cheque if you have to go through surgery.
         The payout amount is different depending the severity of the surgery.

7. Why is it important to consult with insurance agent?

     

   Buying an insurance without proper consultation can result in lack of understanding of the product

   or misbuying of the product.

    Consulting with insurance agents allows you:

• To understand better of the product
• You can ask all your doubts about the insurance product
• You can judge the agents
• You can see how your insurance budget is allocated to your need
• You can gain better insight and information
• Insurance agents are trained with product knowledge, hence they can provide better consultation.