Sigh... I am not trying to get your hopes high TS, but do remember to post back after 10 years later.
There are many plans/agents out there that says the payment is only up to 10 years, but end up paying for 20 years due to the cash values accumulated is not enough to pay off the balance of another 10 years.
Do read in the FULL quotation on the duration one is needed to pay.
Insurance is about protection, never for investments/savings. Even if the plan is called Investment Linked Policy, its main focus is to provide financial security/protection NOT INVESTMENT.
Let us put our thinking cap on, shall we? You see when it comes to any insurance products, there is this thing called insurance charges, AGENT COMMISSION, policy charges.
In short, if you put in RM100, the amount that is 'saved' is only RM 60, while RM40 will be used to buy you the protection, and the above. Most insurance plans out there the agent commission is up to 6 years. Thereafter no more commission.
Hence, in order to make your money grow, insurance will take a longer period to even 'break even' (> 20 years). Hello?! The purpose of investing is to make your money grow, and not 'break even' after 20 years! Not to mention you have to put in your money for 20 years and cannot even touch it.
In my starting days a 70 yo "apek" selling apples did say to me, if he buys an apple for RM1 today, he can sell it tomorrow at RM 1.50, making an OVERNIGHT profit of 50%, not waiting 20 years.
You did mention you will get back a minimum RM120K, do you see the word GUARANTEED? If not, it is merely a projection.
OK lets assume there are some truth in that insurance product.
Assuming you put in RM 60K, and get back min RM 120K after 20 years. The IRR is 3.5240% with the exception that you cannot touch this money for 20 years.
Oh yes, I am an insurance agent, not financial consultant
Hi, I notice that you have questions still unanswered. Just found this great forum.
1. If later baby is found with congenital condition and if it falls under the congenital condition as specified as per what you have bought, then yes it will be covered subjected to Rm25k for two years. If the congenital illness is not per stated in the Policy contract, then NO, it will not be covered.
The medical card on the other hand would exclude the congenital illness.
2. Yes, you are right. For PRUearly start (PES) or PRUbest start (PBS), it will only provide cover if it falls under the congenital as stipulated.
For fever or common ailment the cover will only start after 30 days waiting period, 60 days for illneses that falls under the 36 Critical Illness, 120 days on the specified illness.
3. No, down syndrome is not in the congenital illness as stipulated in the policy contract. Hence it will not be covered under the congenital illness but if once baby is born and needs incubation, PES will pay RM100 per day up to 60 days max while PBS will pay Rm200 per day up to 60 days max.
4. Coverage for down syndrome would be excluded from the medical card.
A piece of advise coming from an insurance agent. Whenever we look at savings plan, my advise is be aware of the associated insurance charges that comes with the plan.
The thing about insurance is that its main purpose is to provide financial PROTECTION against financial impact that one may suffer in the event of a critical illness, disabled or even medical. THAT is the cornerstone of an insurance plan.
Do not be brainwashed by agents sales talk by giving high projections. If you dont know how to calculate the ROI or IRR of the plan, do ask anyone who can from other forums.
You would be surprised that most insurance plans are only able to provide a projections of below 5% compounded ROI for the entire tenure of the plan.
Why? This is because insurance comes with insurance charges, agent commission, admin charges and what not that makes it simply unattractive if anyone would want to look at only the RETURNS.
Get your facts right! Insurance is for PROTECTION, NEVER for investments. Even if the plan is called INVESTMENT LINKED it is NOT for investment.