128 Allianz Diabetic Essential - coverage for type-2 diabetic

Allianz Diabetic Essential	Allianz Diabetic Essential
According to the National Health and Morbidity Survey 2015, almost one in five Malaysian adults has diabetes. (Source: NST 7/4/2017.)	根据National Health and Morbidity Survey 2015，每五个马来西亚人当中，约一个患有糖尿病。（资料来源：新海峡时报7/4/2017）
It is indeed sad to be diagnosed with diabetes. It is even sadder that a diabetic may not get to buy a medical card.	患上糖尿病实属不幸，更不幸的是从此不能买到医药卡。
Sometimes, a patient only realised the need for a healthier lifestyle - and a medical card - after being diagnosed with diabetes. By that time, he is not qualified to own a medical card.	有时，病人在被确诊后才明白需要健康的生活方式、以及一张医药卡。很可惜的，这是的他以及不符合资格了。
This has changed after Allianz becomes the first insurance company to come out with Allianz Diabetic Essential - a medical card for Type 2 diabetics. Diabetics has a higher risk of medical conditions, so it's very important to have coverage for hospitalisation and surgical.	现在Allianz推出了首创的Allianz Diabetic Essential，一张给二型糖尿病患者的医药卡。糖尿病患者有较高的医药状况，所以拥有足够的医疗及手术保障是很重要的。
Allianz Diabetic Essential is a standalone, yearly renewable term plan. It has 4 plans available, with annual limit ranging from RM500,000 to RM1,400,000. And it is available for diabetics age 30 to 60, renewal up to age 70. (Download the brochure at https://www.allianz.com.my/allianz-diabetic-essential.)	Allianz Diabetic Essential是单一，每年更新的保单。一共有四个配套，每年限额介于马币五十万至一百四十万。年龄介于三十至六十的糖尿病患者可以申请，保单科更新至七十岁。（可在https://www.allianz.com.my/allianz-diabetic-essential下载传单。）
Now, I have an enquiry for potential client who might have a chance to get covered. Hope he will pass the medical check-up.	现在，我有潜在顾客有望获得保障。希望他能顺利通过健康检查。

101 Standalone Medical Card Funding beyond retirement

Standalone Medical Card Funding beyond retirement	退休后，单买医药卡的资金
Many clients, especially the resource scarce young single and family, tend to buy medical card as a standalone product. The main concern is premium, and payment frequency.	有很多客户倾向于单买医药卡，尤其是资源有限的单身男女和新生家庭。他们最在意是保费以及还款次数。
They feel the premium is higher and monthly payment is stressful if they go for investment-linked policy (ILP).	他们觉得若是购买投资连接保单，保费会比较高，而且每月要付保费会很压力。
It's actually a myth that medical card is cheaper here than the other. What the clients feel is the amount coming out of his pocket.	其实这个医药卡比那个便宜的认知是迷思来的。客户只是感受到从皮包拿出来的数目罢了。
The premium of standalone medical card can be even lower if bought from a general insurance company. The difference of premium between life and general insurance can be as high as 50%.	老实说，普通险(俗称杂险)公司的单卖医药卡的保费会更低。人寿、普通险两者的差别可能高达5成。
In either case, the premium at the beginning is indeed lower. But once touching age of above 60, the premium is scary. We could be talking about annual premium of more than RM4000 to RM10000.	着两者的共同点都是初期保费较便宜。但当年龄一触及60岁以上，保费会挺吓人。每年的保费可能高达4千到1万元。
As we get older, the tendency to use the medical card becomes even greater. Can we afford future medical expenses without a medical card? If we want to continue paying, we might think of how many years we can afford too. If we don't, what should we do if something strikes?	当我们年纪越来越大，使用医药卡的机率应该越高。没有医药卡，我们是否能负担昂贵的医药费？就算我们想继续交保，我们能负担多少年？若不，要是发生什么事时，我们该怎么办？
Let's think of a way. How about if we set up an extra fund for our old age medical card premium? The purpose is twofold here. If we decide to continue paying, this extra fund let us to. And if we don't, we have extra money to self insured ourselves. How does it sound?	让我们来想个办法。何不设立一个为未来保费储蓄的基金呢？可以有两个目的。若是我们想继续交保，这笔钱就派上用场。若不，我们有多余的钱自己保障自己。好吗？
To plan the extra fund, we can calculate the total premium beyond our working years. Of course, we can only calculate based on premium table available now. If needed, add an inflation rate to the calculation.	要准备这笔钱，我们可以计算退休后所需的总保费。我们只能以现有的保费表来计算。若是要稳当点，可以把通胀计算在内。
If we need to have RM100000 after 15 years, we only need to invest RM290 monthly in a instrument that can give 8% annual return. Simple?	如果我们在15年后需要马币10万，我们只需只需选择一个8%回酬的工具，每月投资马币290即可。简单吧？
Then come how can we create the fund? The simplest way is to start a separate regular saving plan using unit trust (UT) or private retirement scheme (PRS).	那我们该如何创立这个基金呢？最最简单的莫过于每月投资于信托基金或私人退休基金。
By properly select a combination of UT or PRS funds with proven track record, we can do it. To know their performance, we can refer to Lipper, MorningStar or Novagni rating published in websites, magazines or newspapers.	只要细心挑选记录良好的信托基金或私人退休基金即可。我们可参考登在网站、杂志或报纸的Lipper，MorningStar，Novagni评级。
There are only 8 providers of PRS funds, and all of them are selected after stringent scrutiny by Securities Commission (SC). On top of that, the design of default funds are fixed by SC too. So we should be safe to choose any of them.	市场上共有8家私人退休基金供应商。全部都是经过证券委员会严格挑选，且这类基金的设计也是由证券委员会操刀。所以我们应该放心挑选。
In terms of UT funds, there are few hundreds in the market. Consumers are spoilt for choices. Maybe we can use a simple & lazy strategy - pick only EPF approved funds. EPF will scrutinized all funds every year and publish a list of approved funds. Funds don't meet its requirements will be shown the door.	在信托基金这方面，市面上不下两三百个。真是让人眼花缭乱。也许我们可以用简单方便的方法，就是只选公积金批准的基金。公积金每年都要评估基金一次，并把符合资格的基金列出来。不符合资格的都被踢掉。
So I think consumer has better chance by following these two groups of funds which are under tight surveillance. Agree?	所以我觉得消费者若从这两类基金里挑选的话，胜算应该很高。对吧？
One might wonder why I suggest PRS. Isn't PRS designed for retirement purpose? Well, there is a critical reason here.	有人可能怀疑为何我会提私人退休基金。难道它不是为退休而设计的吗？这其中有个大道理。
In my many years of experience, I noticed clients tends to withdraw money when the withdrawal is relatively easy and cheap. Imagine this. In time of emergency, which money will we take out first - savings accounts with ATM card or a fixed deposit account? Mostly it will be the former.	根据多年经验，客户多数会选择容易提款以及较低费用的管道提出款项。试想在紧急状况时，我们会从附有提款卡的储蓄户头抑或是定期存款提款呢？应该是前者吧。
Why? The former is convenient and doesn't cause much impact on interest earn. The latter requires us to go to the bank and we might think of the interest lost if the FD has not matured.	为何如此？前者很方便又不会对利息造成影响。后者要劳烦我们去银行，而且我们又会考虑到未满期利息损失。
Likewise, redemption of UT is more convenient and cheaper than a PRS. UT withdrawal normally won't be charged. As compared, only 30% of money invested in PRS can be withdrawn, and it is further taxed at 8%.	同样的，信托基金的提款会比较简易且便宜。一般可以说是没有费用。相比起来，私人退休基金里的钱只有30%可以提出，而且还必须抽税8%。
Therefore, using PRS will ensure our money will be locked until retirement.	因此，使用私人退休基金可以确保我们的钱会锁死到退休。
I hope whoever bought standalone medical card will think of the funding after retirement. Normally, we would say we try not to depend on our children to support us. So, the younger us has to be responsible to the older us.	希望凡是购买单买医药卡的人士们可以好好的思退休后的医药卡费用。一般上，我们都说尽量不要依靠子女来养我们。那年轻的我们就得为年老的我们负责。
Pls email to sate07689@yahoo.com if you have any equiries.	若是您有任何询问，请电邮至sateo7689@yahoo.com。

065 International Medical Insurance in Malaysia

Malaysians with medical insurance coverage normally are covered by local insurance companies. In JB, many people like to go to Singapore to seek medical treatment because of their advance medical industry.

Seeking medical treatment isn't cheap in Singapore, now adds to the pain is the extreme high currency exchange rate. Malaysia ringgit has depreciated against Singapore dollar by about 20% during the past two to three months.

Another problem with treatment in Singapore is the local insurer will not pay the medical bill in full. Insured will be reimbursed on a reasonable and customary rate basis. Meaning the insured can only claim the amount similar to seeking treatment in Malaysia. Current exchange rate is not considered, travelling cost in between two countries is not considered, the high medical cost there is not considered.

Another scenario can be an expatriate who is sent to oversea to work for more than 90 days. Any medical treatment after the 90th days won't be entertained by local insurer as well. The insured must come back to Malaysia after that.

Apparently, International medical insurance is needed by certain groups of people here. International medical insurance takes away he above two limitations. Imagine a businessman who travels to countries every now and then would be better protected when medical needs arise during his trip.

We may be familiar with hospitals and procedures in Malaysia or Singapore, but I think we will all be panic if we are in India, Brazil or France. We know nothing about their medical system. That's why international medical insurance comes into handy.

UltraCare, this International medical card, comes in four plans and quoted in USD. The lowest plan has annual limit of USD1.5mil (approx RM6.45mil). Local medical cards now has annual limits of RM1.5mil, highest.

Right now, the premium is quite high to general public. My own experience is middle class income earner can barely keep up with rising insurance premium. So, this international medical insurance is place more to high net worth individuals.

The good news is the insurer will come come out a new insurance that will be priced between the two.

064 Medical policies lapsed!!!

I just realised, yesterday, that me and my wife's medical card policies were due or lapsed. I know they are due somewhere in Jul and is expecting the renewal notice. However, none came. So, I called the insurance company to do enquiry. Yah, they were due or lapsed because of late payment.

So, I made a visit to insurance company, told them the story of our policies. The staff said we can continue our policies by making the payments. The renewal notice is sent out by HQ and it seems like their system has some problem doing so. Many clients has faced the same problem and made complain.

Indeed, we have been with this insurance company for many years. This is the first time we do not receive our medical card policies renewal notice.

For our case, the insurance company accept our renewal because of the special reason. If it is the client who delay payment and cause the policy to lapse, the client needs to fill in a health questionnaire for the insurance company to do underwriting. This may place the client in a disadvantage position because the new underwriting may exclude certain, most needed, coverage.

Therefore, I think we, as client, need to do something to protect ourselves. Medical policies is one of the policies that I will not take risk to lapse.

What can we do?

1. Keep a list of all insurance policies and their renewal dates. The list can be in a sheet of paper or a phone calendar app.

2. IF possible, authorized for auto renewal through auto-debit or credit card.

3. Do a annual policies review. Do it on a date easy to remember - birthday, anniversary, specific public holiday etc.

034. Healthcare hike for foreigners

It is reported in today's theSun that foreigners will have to pay more when seeking medical treatment at government hospital. The rate they need to pay will depends on their length of stay in Malaysia, as below:-

Year       Cost to be borne
1st          30%
2nd        50%
3rd         70%
4th         100%


The new costs under new rate

Class             Deposit         Surgery           Obstetric and Gynaecology
3rd                RM600          RM1200         RM1200
2nd               RM900          RM1500         RM1500
1st / Exec     RM2100        RM3300         RM2100


The foreigners will includes foreign workers, foreigner married to local, illegal worker etc. This comprise a few millions in the country. Of course, those with proper employment will have insurance coverage.

We all know medical expenses is the most expensive and is a burden to normal families and to government. My previous posts reported insurance companies raising their medical insurance's premium.


My advice to employed foreigners are to discuss to their employer to get a medical and accident coverage. Employer can have tax advantage to provide general insurance coverage for their workers. For married foreigner spouse, especially full-time housewife, discuss with your spouse to get a life, accident and medical coverage. A little premium can save your day in need.

For SMEs who may be employing only locals, do also consider providing insurance coverage for your workers, who most of the time are your relatives or are long-employed under you. Think it as your responsibility to them. Think it as a benefits to them. Think it as an act of appreciation to them.

Let insurance company to cover your medical bills instead of burning your pocket.

030. Apply medical insurance while still healthy

My mentor shared his experience about his recent interview with a new prospects.

The prospects were introduced by his existing client. They are husband and wife looking for medical insurance.

When comes to medical insurance, my mentor is very careful with insurance especially medical insurance.

During the initial interview everything seems to be fine. However, after some digging, my mentor found out the couple actually already has some health issue. According to his experience, it won't be a standard case. A medical examination is almost certain. Insurance company may impose exclusion, ie do not cover certain illness.

It is sad to see this. Many people do not want to buy a medical coverage when they are healthy. They think it's a waste of money. In fact, medical insurance should be the first insurance one should get covered.

For planner or agent, it is commendable he conducts sufficient interview to know the client. Planner or agent is the first underwriter.

011. Medical Insurance premium is increased!

011. Medical Insurance premium is increased!

Just received an email, last Friday, about the notice of upward revision of medical insurance premium for AXA Affin General Insurance. The last time this happened was in 2013.

When I told another planner about this news, he merely said it is expected more insurance companies will follow. End last year Allianz had just raised the medical insurance premium, by about 30%. Now AXA Affin.

Insurance company cite "medical costs have increased rapidly due to medical inflation".

How much is the rise? It is, mentioned in the memo, about 0% to 38% depending on the age group. However, when I look at the premium table, my jaw nearly fall off. It used to be a flat rate for age band 1-14, but it is now broke down.

The premium for age 1-3 is increased by nearly 100%. This is so shocking to me. The premium is getting closer to that of a life insurance companies. However, if life insurance companies increase their premium later on, the gap might become larger.

And for that premium increased, insurance company has also enhanced some features. As we can see from the premium table, the coverage is now extended to age 100; and AXA Affin also include International Emergency Medical Evacuation and Repatriation benefit for Plan 2, 3, and 4 (RM50,000).

AXA Affin also mentioned "SmartCare Optimum is a product that runs on the platform of pooling of risk. The basic concept of risk pooling is each premium contribution from an insured member is placed in an insurance pool. This pool will ensure that members only pay consistent premiums throughout their medical insurance coverage as the large amount in the pool will protect the insured member from being exposed to high severity claims cost. As medical costs increased due to medical inflation, premiums has to be adjusted to ensure long-term viability of the portfolio."

Undeniably, insurance company must be profitable to be able to provide coverage. Rising of medical inflation is also outside their control. With proper calculation, hopefully the insurance company will continue to remain the product.

007 Do you want to replace your insurance policy?

Do you want to replace your insurance policy?

A friend made an appointment to discuss her insurance policy. I happily agreed.

It was a raining afternoon. She was a little bit late due to it. We met in my discussion room. We can still hear the rain fall, heavier than before she came in.

She said an insurance agent reviewed her insurance policy and proposed a new one to replace the old one. The agent's arguments is she can lowered her monthly premium from RM300 to RM200 while increasing her medical card coverage. She also asked the agent is it a good idea to replace a new policy. Then the agent said she may keep both policies. She was confused does the new deal is as good as it sound

My questions to her was which of the benefits attracted her? She is actually unsure. To her, her on hand policy is suffice at the moment. She doesn't think she needs high life insurance coverage; maybe higher medical coverage is needed in view of the escalating medical costs.

So, I go on to analyze her needs and wants. Since she thinks higher medical coverage may be helpful, I lead her to untangle her mind.

I said I am strongly against replacing older policy with newer one. To me, this act is just too risky. I won't want myself or my friends or clients to land in a difficult situations. Earlier policy was bought and in force when policyholder is younger and healthier. Our health is expected to get weaker day by day as we grow older. We can't put ourselves at risk should some medical condition strike us during the policy changing period. And the cash value in policy is building up and can help us to cover the policy in future.

So, replacing policy is out of the question. Now, if she wants additional coverage, she needs to think of her budget. My questions was can she afford to service two policies. Servicing two policies mean increasing her monthly premium from RM300 to RM500. Apparently, her salary is just enough for her. So, servicing two policies is out of the question.

Then I asked in all the benefits, which she thinks is the most important? She thinks medical and perhaps accident coverage are the most coverage. I said why not we explore the possibilities having standalone policies to cover them.

She is only 30+ years old. Having a standalone medical card is so affordable. The annual premium is only RM700 to RM900 depending on the coverage. Of course, the premium after age 60 can be quite high. As an alternative, she can apply for deductible plan where the premium could be 50% cheaper. For this alternative, she needs to bear a certain amount before the balance amount be paid by the extra medical card. When her first medical card finally finished its lifetime limit, she can convert the second medical card to normal plan and is ready to take over full coverage.

As for the extra accident coverage, she can buy any accident plan offered by general insurer at much cheaper cost.

My mentor said the best insurance plan is the one in force. I am against replacing old policy with new. I am surprised such practice still exist in the industry. It was a few years ago when I was approached by an agent to do the same thing.

I am hopeful the financial planning industry can rise up to promote client focused services. I am hopeful financial planner can treat their clients exactly like their own friends and family. I hope I can be a planner that take care of my clients; and that my clients would appreciate such service and in turns help me to survive in this industry.

Oh, when we finished our discussion, the rain has already stopped. She did not buy anything from me.