steviani

Well I have decided to get myself a Christmas present and that is…. A domain… Yes now i own steviani.com and what will i do with it? I still dont know, i just thought i want something new and i opened wordpress.com and look at the offer and thought Yes i think steviani.com would be nice.

Looking at my blog writing record, almost 2 years, i have less than 24 posts, even this year i only manage to write less than 10 posts. Money well spent? Maybe not. But hey… It’s Christmas time and New Year is just around the corner. I just have a new baby so maybe I’ll write something about it and eventhough I didnt write anything for the next 12 months, i think i’ll just write it off as donation and forgive myself for doing so T_T

Merry Christmas and Happy New Year 2015 everyone, I hope you all will enjoy this festive season as much as I do and I wish we all have a very peacefull Christmas. Hohoho… Merry Christmas!

Steviani

Have you had yourself covered with Indonesian National Health Insurance offered by BPJS Kesehatan? Go get one if you haven’t. It is the cheapest health insurance in Indonesia. If you are Indonesian or Foreigner who have stayed in Indonesia for more than 6 months, you can apply and get it as soon as you pay the premium. It can give you at least a bumper in case you had some financial difficulty and need to get medical treatment. It even cover birth expenses. Get it if you are too scared of getting a private health insurance from a private insurance company. Well it is compulsory anyway by 2019.

For people in a different group, who already have steady income and have no worries for money spent, health cover is all about additional lifestyle benefit. You have to do every check up in Singapore, have operations in Malaysia/China, or maybe for some specific treatment you just have to go to the top medical provider in countries like USA, Europe, Korea or Japan. Well even though money is not the problem but if you can pay with a discount for a full service,  I’m sure even the richest will take that option.

I got an offer last time from a friend who is an agent at PT. AIA Financial. He offered me a top notch hospital cover called Premier Health & Surgical – Gold.  I read the proposal and make a similar illustration using PT. Asuransi Jiwa Sequis Life product called Sequis Q Health Global Plus.

Sequis used to be famous for its “As Charged” cover with an annual limit. But lately, more insurance company apply the same “As Charged” cover method, than “Up to The Limit” per disability/ per medical treatment. Both AIA Premier H&S Gold and Sequis Q Health Global Plus apply the “As Charged” method with a difference : AIA PHS Gold use “As Charged” with per disability limit and per annual limit. While SQ Health Global Plus straight “As Charged” until it reach the annual limit or whole life limit.

Now let’s start take a look closely at each benefit from AIA Premier Health & Surgical – Gold versus Sequis Q  Health Global Plus :

1. Health Insurance Coverage Area

a. PHS Gold : Indonesia, Malaysia, and Singapore

b. HGP : Worldwide (every country in the world with no exception)

2. Health Insurance Age Cover

a. PHS Gold : until 80 years old

b. HGP : until 85 years old

3. Annual Limit

a. PHS Gold : Rp. 5.000.000.000,00 (5 billion rupiah)

b. HGP : US$450,000 (450 thousand dollars) with maximum conversion equal up to 5.5 billion rupiah

4. Per Disability Limit

a. PHS Gold : Rp. 1.000.000.000,00 (1 billion rupiah)

b. HGP : n/a (unless specified below)

5. Hospitalisation Cash Benefit

a. PHS Gold : Rp.2.000.000,00 (2 million rupiah) / day, maximum 20 days per policy year.

b. HGP : n/a

6. Hospitalisation and Outpatient Benefit

a. AIA Premier Hospital and Surgical – Gold :

– Dialysis and/or Cancer treatment, max. Rp.300.000.000,00 (three hundred million rupiah) per policy year

– Physiotherapy treatment, max. Rp.1.500.000,00 (one million five hundred thousand rupiah) per visit

*>Hospitalisation and Outpatient cost will be covered “As Charged” (note : reasonable cost and medically necessary, up to per disability limit) for :

– Hospital Room, max. cost is the lowest price at the hospital for 1 bed/room, max. 150 days/policy year

– ICU, max. twice the cost of Hospital Room, max. 150 days/policy year

– Surgery (minor, intermediate, ,major, complex, outpatient surgery), which include surgeon, operator assistant, anesthesiologist, operating room, recovery room, surgical equipment and necessary operating medicine

– General practitioners visit, max. 1 visit per day during hospitalisation

– Specialist visit, max. 1 visit per day during hospitalisation

– Ambulance cost during hospitalisation

– Miscellaneous cost of hospital care during hospitalisation, which include supporting examination and treatment

– Prosthesis and/or Implantation cost

– Treatment Before Hospitalisation, max. 30 days before hospitalisation, which include laboratory tests and diagnosis

– Treatment After Hospitalisation, max. 60 days after hospitalisation, which include laboratory tests and diagnosis

– Outpatient Emergency Treatment due to Accident

– Dental Treatment due to Accident

b. Sequis Q Health Global Plus : 

– Hospital Room, max. US$450/day (max. conversion 5.5 million rupiah), 150 days per policy year

– Emergency Room, max. US$450/disability

– Medical Report, max. US$100/medical report, max. 1 medical report per disability

– Companion at Hospital – Accommodation Cost (if insured person age below 15 y.o.), max. US$150/day, 14 days per policy year

– Hospitalisation Admin Cost (include tax and stamp duty) – max. US$50

– Ambulance cost, max. US$500 per policy year

– Outpatient Dialysis Treatment benefit, max. US$10,000 per policy year

– Outpatient Cancer Treatment benefit, max. US$10,000 per policy year

– Additional Cancer or Heart Attack Benefit, US$30,000

– Prosthesis and Implantation, max. US$1,500 per policy year

– Physiotherapy Treatment benefit, max. US$150/treatment, max. 60 days after hospitalisation, max.60 days per policy year

– Private Nurse at Home, max. US$150/day, max. 120 days per policy year

– Additional Death Benefit due to Accident, until 60 years old, US$150,000

*> Hospitalisation and Outpatient Cost will be covered “As Charged” (note : reasonable cost and medically necessary, up to the annual limit or whole life limit) for :

– ICU, max. 45 days per policy year

– Miscellaneous Hospital cost

– Surgery ( include day surgery/outpatient surgery)

– Daily Consultation with GP and Specialist, max. 2 visits per day, max. 150 days per policy year

– Consultation with Specialist before hospitalisation/surgery, max. 30 days before hospitalisation

– Laboratory tests and diagnosis cost before hospitalisation, max. 30 days before hospitalisation

– Treatment After Hospitalisation/Surgery, max. 90 days after hospitalisation

– Outpatient Emergency Treatment due to Accident, max. 30 days after the accident

– Dental Treatment due to Accident, max. 30 days after the accident

7. Local and International Medical Services for Travel Emergencies

a. PHS Gold : Available

b. HGP : Available

8. Health Insurance Cost

a. PHS Gold : Rp.2.629.000,00 / month

The above cost is for Female, 30 y.o. with rider AIA PHS – Gold 5 (Option A) which have additional birth benefit.

b. HGP : Rp.2.592.333,33 / month

The above cost is for Female, 30 y.o. with rider Health Global Plus.

If you wondered how much is the annual premium that we have to pay for this TOP Health Cover which benefit can reach up to 5 Billion Rupiah per year, the premium comfortably start from 100 million rupiah per year if you take a unit-link product, with minimum payment period of 10 years. ( Mine was prepared for 20 years premium payment period >.< )

That is all my summary for today, hope you have a great weekend.

Cheers!

Steviani, CPA, CFP®

Accident happen almost every day in Jakarta. Some accidents that attract my attentions so far is about a careless husband, driving a motorcycle running on a bridge in a wrong direction then got hit by a car which causes his pregnant wife to get thrown off and down the bridge, and immediately instant death.

Another one is just few days ago, 2 married young doctor who are planning for a holiday to Malaysia; they ride on a taxi which runs more than 120km/hour on the toll road. They were chatting at the back when the taxi driver hit a non moving truck. He lose control then hit a running CRV car, then ended by hitting a concrete wall. The husband is lucky to survive but his 5 months pregnant wife unfortunately got hit on the head and when the husband immediately check on her, the head skull was already soft and her pulse is weak, her eyes pupil is widen. He knew by then, she wont make it. He is 33 years old and she was just 31. They have a 3 years old child at home, now probably waiting for his/her mom who will never return.

Lack of discipline, lack of signs, lack of control and traffic police that is easy to bribe with some quick cash. It is not a blaming game, it is just a pity that some people have to lose their loved one only because they can’t follow simple instructions to be safe on the road. You are not the only one who is using it so why can’t you be more careful, care more about other people who is also using the same road. Read the signs, stop when you have to stop, be patient when it is crowded, take turns and don’t cut in front of other people and pissing them off. Your family is waiting at home. Accident do happen but When is Your Time? No One Can Tell so when you are on the road, stay alert and be safe.

If you live in Jakarta, almost in every major bank now you will find a small table selling insurance product. They are not part of the bank itself, they are just working together with the bank to get more customer for the insurance company and more commission income for the bank.

Most of them are selling unit link products. You can add any additional protection on that basic product such as health protection, etc. But what appeal to me lately is the way they promote their product by mentioning about the difference in costs, especially acquisition cost.

Acquisition cost is a cost that is acquired by the insurance company to cover all of their initial cost such as agent commission, administration , issuing a policy, etc. In addition to acquisition cost, there is also a monthly admin fee, investment fee, policy maintenance fee, monthly insurance cost, etc. See, there are so many cost involved when you buy a unit link product. But then, it is cost versus benefit they say, especially if you can not manage your own money. Let you focus on your job, let the experts manage your money and you pay them a fee. Fair enough.

Now, I just got some new proposals, created in May 2014, from Tokio Marine, AIA and Sequis Life. Let us do some comparison summary. I will only compare the basic product and all the wordings are all clearly written in the proposals.

The proposals I have on my hand right now are : TM Maximum Investment Plan from Tokio Marine Life Insurance Indonesia, Maxi Health from PT.AIA Financial and SequislinQ Value Protector from Sequis Life.

Some of the Basic Program Differences :

1. Basic Program Coverage

a. Sequislife : Life coverage until 80 years old. Death benefit 100% sum insured + additional 150% sum insured if death caused by accident before 60 years old.

b. Tokio Marine : Life coverage until 99 years old. Death benefit 100% sum insured.

c. AIA : Life coverage until 99 years old. Death benefit 100% sum insured + additional 100% sum insured if death caused by accident before 70 years old; maximum additional benefit due to accident is 150 million rupiahs for age below 18 yo, 500 million rupiahs for age between 18 to 70 yo.

2. Loyalty Bonus

a. Sequislife : Bonus 1% (1 percent) from regular premium, paid out from Year 6 onwards until the end of premium payment period. With condition the policy age is more than 60 months, no withdrawals, no missed out premium payment.

b. Tokio Marine : Bonus on Year 6 – 10% (ten percent), Year 8 – 10% (ten percent), Year 10 – 10% (ten percent) from regular premium. With condition assuming the premium is paid every year (including the bonus year if you want to get the bonus).

c. AIA : Bonus on Year 10 – 15% (fifteen percent), Year 11 – 25% (twenty five percent), Year 12 – 35% (thirty five percent) from regular premium. With condition you have paid the premium for year 10 and/or year 11 and/or year 12 ;and if the accumulated sum of withdrawal is no more than 2 times the annual regular premium.

3. Acquisition Cost

a. Sequislife : For regular premium 0% (zero percent) all the way and for regular top up 5% (five percent) all the way. Top up is not compulsory.

b. Tokio Marine : For regular premium, Year 1 – 40% (forty percent), Year 2 onwards 0% (zero percent) and for regular top up 5% (five percent) all the way.Top up is not compulsory.

c. AIA : For regular premium, Year 1 – 70% (seventy percent), Year 2 onwards 0% (zero percent) and for any top up 3% (three percent) per transaction. Top up is not compulsory.

4. Investment Cost

a. Sequislife : 0,75% for Rupiah Cash Fund, 1,25% for Rupiah Stable Fund, and 1,50% for Rupiah Equity Fund, Rupiah Managed Fund & Rupiah Syariah Balanced Fund. Investment Fund Managed by Schroders.

b. Tokio Marine : Maximum 2% per year, depend on the type of investment chosen. Investment Fund Managed by various fund managers.

c. AIA : Maximum 2,5% per year, depend on the type of investment chosen. Investment Fund Managed by AIA Financial.

5. Administration Cost

a. Sequislife : Rp.40.000,00/month.

b. Tokio Marine : Rp.55.000,00 or USD$5.50/month for the first 10 years, afterwards Rp.27.500,00 or USD$2.80/month onwards.

c. AIA : Rp.27.500,00/month for the first 10 years, afterwards Rp.15.000,00/month onwards.

6. Policy Maintenance Cost

a. Sequislife : 0.45% per month from the regular premium cash value for the first 72 months, 0% afterwards.

b. Tokio Marine : 4.50% per year from the regular premium accumulated investment value for the first 84 months.

c. AIA : 3.50% per year from the basic regular premium account value for the first 7 policy years.

7. Insurance Cost

a. Sequislife : Insurance and rider cost will be charged accordingly looking at the age and sum insured.

b. Tokio Marine : Insurance cost will be charged monthly. Any riders will be charged from the Top Up Investment Value for the first 84 months; starting from the 85th month, cost will be deducted from the Regular Premium Investment Value.

c. AIA : Insurance cost depends on the age and sum insured. Cost will be deducted from the Top Up account if not sufficient then deducted from the Basic Regular Premium account.

8. Premium Holiday Fee

a. Sequislife : On the first 5 years, if there is any premium holiday, the regular premium amount owed will be deducted from the Unscheduled Top Up Investment Value. If not enough then the mode of payment of annual regular premium will be changed into monthly payment.The monthly regular premium amount owed will be deducted from the Unscheduled Top Up Investment Value.

If there is no unscheduled top up payment or the unscheduled top up payment value is not sufficient, then the client will be charged 1% monthly from the regular premium accumulated investment value and by the end of the 12 months, the policy will lapse.

b. Tokio Marine : Premium holiday is not allowed on the first 3 years. If there is a premium holiday exist before the first 3 years, then the investment value will be paid out based on the Redeemable Value then Policy become inactive.

After the first 3 years, Premium Holiday fee will be charged from the regular premium accumulated investment value, as a percentage from the total monthly cost which include Admin cost, Insurance cost and Policy Maintenance cost. Premium Holiday Fee on Year 4 – 60%, Year 5 – 60%, Year 6 onwards 0% (zero percent).

c. AIA : Automatic premium holiday fee will be charged if there is a premium holiday on Policy Year 6 and Year 7; with amount 5% to 10% from the basic regular premium account value.

For the first 7 years if the regular premium is not paid in full even after the grace period, then the regular premium owed will be deducted from the Top Up account value (if there is any), thru automatic premium payment facility.

For the first 5 years, if the Top Up account value is not enough to cover the regular premium owed then the policy will lapse.

If the policy has entered its 6th year and the regular premium scheduled has not been paid in full even after the grace period has passed and the top up value is not enough to pay the premium then the automatic premium holiday fee will prevail. During this period, all costs will be charged as usual from the account value. If it become insufficient then the policy will lapse.

9. The Redeemable Value when Policy Lapsed or Cancelled

a. Sequislife : The redeemable value at Year 1 – 10%, Year 2 – 25%, Year 3 – 40%, Year 4 – 55%, Year 5 – 70%, Year 6 – 85%, Year 7 onwards – 100%. All calculated from the regular premium cash value.

b. Tokio Marine : The redeemable value at Year 1 – 30%, Year 2 – 45%, Year 3 – 55%, Year 4 – 65%, Year 5 – 75%, Year 6 onwards – 100%. All calculated from the regular premium accumulated investment value.

c. AIA : The redeemable value at Year 1 – 5%, Year 2 – 10%, Year 3 – 30%, Year 4 – 50%, Year 5 – 70%, Year 6 – 90%, Year 7 – 95%, Year 8 onwards – 100%. All calculated from the basic regular premium account value.

In summary, when you look at a proposal, some agent will point out the loyalty bonuses you get, some will point out the once only acquisition cost. But frankly, when you calculated the loyalty bonus with the acquisition cost, i personally don’t think there is a bonus at all. It still your money which they took at the beginning and return it to us at a later point.

I hope by reading this, you diligent readers can have a better information, be able to see the good and not so good side of each product, then make a decision for yourself. Be a smart buyer.

Last but not least, a quote for the day is from Frank Zappa : ” A mind is like a parachute. It doesn’t work if it is not open.”

Steviani, CPA, CFP®.

What do you like about your health insurance cover?

I know what i like about mine. It gives me a peace of mind wherever I go.

I live in Jakarta. Our government is currently working hard starting up a national health insurance cover for everyone. Everyone : Indonesians and Non-Indonesian who stay in Indonesia for 6 months or more. With 250 millions people, it is the best insurance in terms of affordability that you dont want to miss out if you dont have one. Level of coverage : local. You have to inform the authorities for any changes in place of abode. It covers a lot of things for a minimum price. You can check it out at http://www.bpjs-kesehatan.go.id , click Program Jaminan Kesehatan for more details on the cover, the premium, places where you can get the health services based on living area.

Next, if you like the idea of insurance but maybe thinking that the national health cover is not enough, you can start taking up a private health insurance covers. You can do your own research on what sort of covers you’d like to have, how much premium you afford to pay, and which countries you will visit when you get sick. Most private health insurance will cover countries like Singapore and Malaysia as those two is the most likely destinations for Indonesians. However, do check before you buy!

Sequis Life has a program called Sequis Health Platinum Plus Rider which covers countries on South East Asia (Indonesia, Singapore, Malaysia, Brunei Darussalam, Philippine, Thailand, Vietnam, Myanmar, Laos, Cambodia and Timor Leste) plus China (exclude Hongkong). From 1 month old baby until 65 years old grandpa/grandma can opt to take this cover; with a condition you are still healthy when you enter into the program. It gives protection until you are 85 years old.

Lastly, for someone who loves to do traveling around the world, Sequis Health Global Plus is the best choice. It covers all countries in the world, nothing is excluded. I heard from one of my fellow lions that USA, Japan and Netherland got the best technology for cancer treatment. I don’t really know but I’m glad I got one which will cover the expenses when I need it, wherever I landed.

Health Insurance is not only a cover. For now, it is part of a community lifestyle. If you want further details, just drop me an email at steviani@gmail.com or let me know your email so we can set a time for a meeting.

Steviani, CPA, CFP®.

Many people in Indonesia still believe in savings. Believe means they know that to have a saving is good but it is something that really hard to do in real life. While not many have experience in investment, they do have some sort of instinct to put most of their major investment either in savings account, term deposits, properties or gold bars. They don’t like insurance,but they like the idea of being protected when they are ill/sick and have some pension money when they retire, to be able to leave some inheritance to the family when they gone.

Just recently that I know, most productive people age around 20-50 years old, rarely have long term savings.

If you ask them whether they have savings account for pension, some will say they have. But how much are they putting into it, or whether they put it regularly, most of them haven’t really thought about it.

The workers think their company/government will take care of them. They earn income, spend it, find any left over to put into savings account. Another month if they got another interesting thing to buy, they withdraw the money to purchase the goods. If any accident happened to member of the family, they borrow money from friends who have saved more money than them.
 If extraordinary expenses incurred eg. school trip, they will either propose to extend the payment or borrow someone else to cover it.

In a recent event which I attended, a group of people who recently got fired, most of them reveal shocking truth about how they were all in a comfort zone that they never really think to prepare anything like health insurance, pension fund, emergency fund, etc. It was all covered by the company. Being fired was not in the plan. If your government/company is giving you health insurance, accident cover, pension fund, life insurance; how could you not believe in Insurance?You all were relying on it.

Now I am offering you a Financial Planning. What happen if you never do your own financial planning? Well, nothing much. Until one day when you arrived at a point where the company ain’t going to cover you anymore, your government benefit is not enough to cover you, I hope you already have enough savings to support your own life. That is why, before you reach that point, make your plan, get your life instruments ready, work hard and make a smart investment for your future. Nothing you can do to change the past, but if you want to change the future, NOW is the time to do so.

What early financial planning can do for you?One example, I have prepared some interesting plan that can make your money keep over flowing no matter whether the world is in a crisis or not, whether the interest rate is up or down, no matter what happened, you will have a GUARANTEED STREAM OF INCOME for the rest of your life. It is like a Time Machine where all we do is Transferring some little portion of your current money to the future. In the future, all you have to do is Receiving the Money and use it whenever you want to. You don’t have to deal with Mr. Tax man, you don’t have to rely on your children for pocket money, you could  just enjoy your day, enjoy your financial freedom. Sounds too good to be true, well I am not a liar nor a cheater. I am an accountant and for your case, I am just a Financial Planner. It is my job to make plans and show you what plan that will give benefit to you or your family, Financially.

Last but not least, early Merry Christmas to you and thank you for reading my blog. I am taking my holiday soon ^_^ so if you want to book a consultation time before 20thDecember2013, make it early by sending email to steviani@gmail.com . I am looking forward to make a good plan for you.

Steviani, CPA, CFP®, 2013 Sequislife ICON, MDRT.

His birthday is coming in 10 days time.

Now he is still 30 years old. Handsome, married a beautiful wife, have 2 adorable young children. The oldest is just 4 years old, the youngest just turning to 1.

–rewind-

A few days ago, my mother in-law told me about a friend of her whose son is currently hospitalised because he was suddenly collapsed in his house.

He is just 31 years old, very young but he got high cholesterol she said.

I asked her,  is he married? Yes, with 2 kids.

They all worry she said, it all happened so sudden. A week ago he was standing there brightly on his brother’s wedding celebrations. His kids were so cute they all standing on the podium giving a handshake to the guests.

Why Worry Now?

People live with lots of choices on their hand. They are free to make their own choices, including choices of what sort of life they want to live in.

This young man, i can’t really say for sure  but I’m sure he chose to live a happy life with his wife and his 2 young children.

They Worry Now, he is in coma, he can die anytime, who will care for his children, how his family going to cope if their bread winner is to pass away. No one knows, they all just got worry for things that is so sudden and unpredictable. They are not ready for it. But for now, they just worry how much will the hospital bill be? Will he survive? Will he be able to work again like normal? Will anyone willing to support this family?

Why Worry Now?

That is the three words resounding in my chest for a while. Why do you have to worry? Sickness and death is always unpredictable, but maintaining a healthy lifestyle is something that you can choose and afford. So, Why Worry Now? What is the actual thing are you worrying about? All these people, from what i can hear is all your worry is about money money and money. Everyone worry but no one really wants to spend their money for this family’s future life. They are worry, but they can not help.

If only they knew, if that young man is to pass away, his parents will pay all of the cost and support his family.

Money is not everything but it sure can helps you at times in need.

Life is irreplacable so why dont you start to show your love by taking care of yourself first. Live a healthy life mentally, physically, and financially.

-coming back to Now-

My mother in-law just came back from the hospital, she told me that the boy has passed away last night, but his wife still wants to keep him longer so she refused for them to take out the breathing support.

It was so sad she said. Her friend got 3 kids, all three of them have the same high cholesterol. The oldest, now 30, has passed away due to heart attack. My condolences.

When I was talking to someone about health/life insurance, they asked how long will it cover? Assuming you are healthy, it can cover you until you are old enough to see many generations to come. However, with this event i hope it is as clear to you, readers, as it is to me, that the risk of death can happen to anyone, anytime at any age. It can happen Now.

So, Why Worry Now? Because you never know when it will happen. If you never have any preparation, then, Start Worry Now.

Steviani, CPA, CFP®, 2013 Sequislife ICON, MDRT.

As a consultant, I find it necessary to learn about my competitors products. It is important so that if my clients have some queries regarding my products and comparing it with our competitor products, i can at least have a say about it and give my client the best information i can get.

In my humble opinion, being a consultant is not just about what you know, but also who you know. Many customers are being ripped off just because they can’t get access to the right resources to get the right information. Thus, as a player in the life industry, i always try my best to keep in contact with other agents from other companies. I may not be able to study all insurance products but by having a network of agents, i can get the best information from the best people in the industry.

Now, talking about The Sequis Difference, i just recently comparing Sequis Life proposal with Prudential proposal. Both are unit linked products, both are giving a whole life protection. The basic unit linked products being compared are Sequislife Protector Plus 85 and Prudential Pru Link Assurance Account.

Some of the Basic Program Differences :

1. Basic Program Coverage

a. Sequislife : Life until 85 years old

b. Prudential : Life OR permanent disability until 99 years old

2. Insured Person Entry Age (Cost Base)

a. Sequislife : using the current age except if the current age has past more than 6 months, the cost base will be using the coming age. e.g., if the current age is 29 years and 3 months, Sequislife will take 29 years old as the entry age. If the current age is 29 years and 7 months, Sequislife will take 30 years old as the entry age.

b. Prudential : using the coming age. e.g. the current age is 29 years and 3 months, Prudential will take it as 30 years old on their illustration.

3. Premium Composition

a. Sequislife : Regular Premium + Regular Top Up. Regular top up is a prerequisite in the premium composition which means there has to be an investment value from the very beginning.

b. Prudential : Regular Premium + Regular Top Up. Regular top up can be left empty which means it is allowed to have no regular top up investment at all.

4. Acquisition Cost

a. Sequislife : For regular premium (Year 1 – 100%, Year 2 – 65%, Year 3 – 45%) and for regular top up 5% all the way.

b. Prudential : For regular premium (Year 1 – 100%, Year 2 – 60%, Year 3 – 15%, Year 4 – 15%, Year 5 – 15%) and for regular top up 5% all the way.

5. Investment Cost

a. Sequislife : 0,75% for Rupiah Cash Fund, 1,25% for Rupiah Stable Fund,  and 1,50% for Rupiah Equity Fund, Rupiah Managed Fund & Rupiah Syariah Balanced Fund. Investment Fund Managed by Schroders.

b. Prudential: 0,75% – 1,75% per year. Investment Fund Managed by Prudential.

6. Administration Cost

a. Sequislife : Rp.40.000,00/month

b. Prudential : Rp.27.500,00/month

7. Insurance Cost

a. Sequislife : Insurance cost will be charged monthly. For the first year, the insurance cost (including insurance rider) is waived. Except for insurance rider SQEPCIR and SQCIR, on the first year will be charged 50% of the full amount. All clearly written in the proposal.

b. Prudential : Insurance cost will be charged monthly.  Important Notes : As there will be no unit created from the regular premium in Year 1 and unit created from regular premium in Year 2 is not sufficient to pay the cost of insurance and cost of administration, thus those cost will be declared as liable cost which will be paid from any unit created from the regular premium, regular top up (Pru saver)and single premium top up (if any), starting from the 25th month. All clearly written in the proposal.

Now, finished comparing Sequislife and Prudential unit linked products, what have i learned?

Having an almost identical proposal from both companies, this is what i can tell :

With Sequislife, on my First Year, if I dediced to close my account, 2 things will happen :

1. Sequislife will close my account, then

2. Sequislife will give me back some cash i.e. the value from the regular top up unit created.

With Prudential, if my consultant use his power to empty out the regular top up section with what commonly said “to increase my protection(???)”; If I dediced to close my account on my First Year, these 2 things will happen :

1. Prudential will close my account, then

2. Prudential will send me a letter, requesting me to pay the company the cost i owe them which is my first year administration and insurance cost.

Most people can’t comprehend this situation. What they know is that they are paying an insurance premium. So if the insurance company is asking to pay the liable cost, they don’t understand how did it happen. With this short explanation i hope many agents will learn to change their way of explaining their products; as the important things has been clearly written in the proposals but so many people including the agents are ignoring it.

The way of saying increasing my protection that means increasing my regular premium and empty out my regular top up is just not right. Even more those agents that think by doing this they are giving the clients a traditional products; honestly, I am worried. Hopefully my time comparing and typing it here can help some self learner individuals to start learning to COMPARE BEFORE YOU BUY. Be a SMART buyer.

Steviani, CPA, CFP®, 2013 Sequislife ICON, MDRT.