KCLau's Money Tips Forum

[chriskon1974]

KCLAU,

With so many established and well recognised insurance company available in Malaysia, I'm curious to know why you have decided to represent GE Life and not AIA, Prudential, ING and so on?

[KCLau]

Hi chriskon1974,

Actually I didn't choose the company at the first place. I was recruited by a senior whom I enjoy working with. I also like the business model and value practiced by Lion Team Advisors. Bhd.(LTA) Then it happened that we are representing GE.

GE is the biggest and oldest insurance company. It might sounds like GE is the best. However, in my opinion, all insurance companies are very competitive and have their own pros and cons, to agents and customers.

LTA is working on getting the Financial Advisory License (FA) which will enable us to represent more than one life insurance companies. Then there will be no issue of restricted to only one company products.

[chriskon1974]

Thanks KCLau !

I have been researching a few insurance companies in Malaysia, GE, AIA, Manulife, Prudential and found very interesting positioning:
1. AIA - many choices of life policies to cater to different needs
2. GE - long established in Malaysia, focus more on traditional policies.
3. PRU - nothing but pure investment-link policies
4. Manulife - favourite among the banks.

Correct me if I'm wrong. These are just my perceptions.

[KCLau]

I have been researching a few insurance companies in Malaysia, GE, AIA, Manulife, Prudential and found very interesting positioning:
1. AIA - many choices of life policies to cater to different needs
2. GE - long established in Malaysia, focus more on traditional policies.
3. PRU - nothing but pure investment-link policies
4. Manulife - favourite among the banks.

Correct me if I'm wrong. These are just my perceptions.

1. AIA - you are right about AIA. One thing I know is for critical illnesses benefit, it is sold in rider form.
2. GE - there are many old agents who still think traditional is the best. In fact, GE just change the trip incentive this year. Those agent who sell investment-linked plan will achieve the sales target easier. I myself sell investment-linked plan more than traditional.
3. Pru - my wife own an endowment policy from Prudential many year ago. But recently, I asked a Prudential agent ( probably a newbie), he said he doesn't know what is "endowment policy". If there is any Prudential agents reading this, please enlighten us about your company's plan other than PruLink.
4. Manulife - I really don't know about that.

[Christopher]

Well, AIA for sure has always having good reputation in terms of traditional policies and I have never heard of people complaining about their claims. There certainly have good solutions.

From my understanding, PRU is the pioneer in investment-link policies and therefore, naturally, their newer agents may not be familiar with endowment. But I must say that many of their agents are quite well trained. Their medical card may be the most expensive of all but provides better coverage and certainty, eg guaranteed renewal, pre and post hospitalisation coverage, lesser cap on specific treatment.

Manulife offers good basic coverage with affordable premiums.

Having said that, GE seems to stand out from the crowd due to its reputation as the oldest and largest insurance company in Malaysia.

[Christopher]

KC Lau, based on GE's product offerings, what would be yr best strategy or suggestion for the following:

Age: 34
Gender: Male
Smoker: Yes
Single
Annual income: Approx M$50,000.00
Dependents: Nil
Children: Nil
Marital plans: Hopefully by age of 40
Based on no further financial commitment.

I just would like to seek your analysis and point of view.

[KCLau]

KC Lau, based on GE's product offerings, what would be yr best strategy or suggestion for the following:

Age: 34
Gender: Male
Smoker: Yes
Single
Annual income: Approx M$50,000.00
Dependents: Nil
Children: Nil
Marital plans: Hopefully by age of 40
Based on no further financial commitment.

I just would like to seek your analysis and point of view.

Since there is no financial commitment, this person only need insurance to protect his own wealth, and the future earning.

And estimation of the needs are:
1. H & S
2. Accidental plan ( cheap Personal Accidental Plan can be bought separately from http://www.Tunemoney.com)
3. 36 Critical Illnesses - RM50k x 3 = RM150k ( about 3 times annual income)
4. TPD was given RM150k when bought 36 critical illness benefit. There is another income replacement feature that can be bought. The benefit pays RM50k per annum to life assured in case of TPD up to age 65.
5. Death - not important since there are no other dependant. By the way, when he bought RM150k for 36 critical illness, the amount will be paid upon death if it happens prior to the diseases.

Plan suitable from GE:
1. Greatlife Portfolio Insurance
2. Supreme livin' Care Plus

A combination of both plan will be adequate and get the advantages of both traditional and investment-linked policies.

[Christopher]

Excellent advice!

It is very rare to have an Advisor like you. Professional as well as ethical.

I have the similar view but you added more punch into the strategy by considering alternative insurance despite the fact that you are representing GE.

For GE Portfolio Insurance and Supreme Living Care policies, how would you suggest to apportionate:

SLCP - RM50,000
Portfolio - RM100,000

or

SLCP - RM75,000
Portfolio - RM75,000

Any comments?

[KCLau]

You can do it either way. If large portion is allocated to the traditional plan, you will have to come out with a bigger budget.

So, I will say that it depends on a person's budget actually. If he can fork out 10% of his income - RM5,000 per year, he can buy a "bigger" Supreme Livin Care Plus - say RM100k sum assured is RM3k+

[jason]

Hi, KC Lau, based on your experience and opinion, what would be yr best strategy or suggestion for the following:

Age: 30
Gender: Male
Smoker: NO
Single
Annual income: Approx M$60,000.00
Dependents: Nil
Children: Nil
Marital plans: Hopefully by age of 35

Thanking you in-advance