What Is Inside A Complete Personal Insurance Plan?
9 picture to show you even Thor need a comprehensive insurance plan.
Introduction
This Is Thor, the son of Ordin; He recently bought a life insurance policy for RM200/month from a full-time insurance agent.
Tips 1: Why we don’t buy insurance product from the bank? or online?
Answer: → because you need an active agent to serve you, help you with the process of hospital admission & discharge & claims.
Why does Thor Need life insurance?
Because thor doesn’t have a magic ball that can predict what’s going to happen in the future, in a 50-50 change called life, something might happen that nobody can predict. → Not even Dr. Strange.
So let’s dive in and see what is inside Thor's insurance policy (which also help you to understand what’s yours)
A) Death: Nobody can escape from death, not even Thor.
If Thor Die today, RM100,000 will be paid to his beneficiary. Now the question is how to do a proper nomination so that the Creditor (banks, along, LHDN, bla3) won’t take that money away from your loved one?
If Thor is married, He should distribute the money either to his wife or children.
If Thor is single, He should distribute the money to his parents.
Tips 2: By doing the above, you can avoid the “bogey man” from touching the insurance money.
Tips 3: You need at least 10 times your annual income for the Death Benefits - to ensure adequate “income replacemen” for your love one.
B) Disability: A Disabled Thor Cannot Lift His “Magic Hammer.”
When Thor becomes disabled, he cannot work (fighting the bad guy) and loses his income. As a result, Thor has no money to pay for his car & house installments, buy food, or pay for his children's education.
Worst still, no pocket money for his wife's pedicure & manicure. 😂
This is where the disability insurance of RM100,000 comes in handy. He can use the insurance money to replace his income. However, RM100K might not support Thor for the rest of his life - since he is a big eater, but at least it is something.
Now, look at the stickman drawing. If Thor loses any 2 parts out of the 6 major body parts, He can qualify to claim the RM 100K disability sum insured.
Tips 4: You need at least 10 times of your annual income for the disability benefits - to ensure adequate “income replacement” while you are out of job.
Tips 5: You can only claim either one of the Death or Disability (whichever come first)
C) 160 Types Of Critical Illness: illness does not discriminate between Hero or Villain.
Long before Thor came to earth, most insurance companies in Malaysia only covered 36 final stage Critical Illness types.
Today the coverage becomes broader. 160 types of critical illness cover from the early stage until a late stage.
Just like Disability insurance (mentioned above in B), Critical Illness Coverage provides income replacement if a person is diagnosed with a critical illness and cannot work for a few months.
Tips 6: You need at least 5 times of your annual income for the critical illness benefits - to ensure adequate “income replacement” while you are not working.
D) Medical Card: Medical Cost Inflation In Malaysia Is Higher Than In The Kingdom Of Asgard.
Tips: A medical card what it does is helps you pay for all your hospital bills as long as you admitted for more than 6 hours or surgery.
You only need to pay RM300 upon admission.
If Thor had a heart attack and needed surgery that cost Rm85,000, His medical card would help settle the bill.
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Since Heart Attacks fall under the 160 types of critical illness (mention above in section C), he will receive additional RM100K cash.
Side notes:
1: How much can Thor claim from his medical card every year? → Unlimited*
2: How much can Thor claim from his medical card until he is 80 years old? → Unlimited*
E) Accident: Every Superhero Needs A Sidekick Because You Can’t Smell Accident Comming.
E1: If Thor Die or become disabled due to an Accident, RM100K will be paid out to his beneficiary. (Look for Tips 2)
E2: If Thor had a minor accident such as a shoulder dislocate during a fight with Incredible Hulk, he could go to the clinic for treatment, and the bill can be claimable up to RM3,000 per case.
Tips: There is not limit to how many accidental bill Thor can claim under the sun - im being serious
F) If Nothing Happen? - In Another Parallel Universe, There Is Peace.
What if nothing happens to Thor during his coverage period?
Rest assured, A small portion of his monthly premium is set aside every month in a “special saving account” where he can choose to withdraw the money at any time to buy more “magic hammer” if needed- no question asked.
G) What if the worst happens? - The power lies in the beauty of the contract.
This is unique to insurance products! let me repeat this, This is unique to Insurance products.
If Thor is diagnosed with Critical illness OR become disable —> The insurance company will waive all future premium. Meaning, Thor Do Not have to pay a single cent until the policy mature at age 80 while still being able to enjoy the coverage in the policy.
On top of that, his insurance company will also help Thor to contribute money into his “special Saving Account” until the policy matured and to ensure he gets the RM60,000 by the end of the term (refer to picture)
Disclaimer: What is being shared above is just a tip of an iceberg of a complex insurance product. Please consult with a licensed financial planner/insurance agent to have a complete picture of your insurance / financial needs.