Public Mutual Fund With Insurance Protection Feature : Cheap Insurance Premium. MUST READ!!

Posted by Kris | Monday, July 04, 2011 | , | 2 comments »

From my milestone tab, you will notice the reason why I cash out my entire Public Mutual Fund. (see link here). I think i forget to mentioned that I still have some funds from the money I extracted from my EPF. Hence, those funds bought with EPF money cannot be withdrawn out, its either switching or return the money back to EPF.

So I did some switching. The fund that I switched into, must also complied with the funds approved by EPF. See my post here for the complete list. http://www.knowthymoney.com/2011/06/public-mutual-funds-approved-by-epf.html

The fund that I switched into is Public Balanced Fund (PBF). It is considered a conservative fund but with a special feature aka INSURANCE FEATURE--> Group Term Life & Personal Accident with Total and Permanent Disability insurance coverage!!!


Below is the statement from a letter i got after i done the switching.
The amount of insurance coverage is equal to the number of units invested in the ration of RM1 insurance coverage for each unit subject to a maximum amount of RM100,000 per unitholder. The coverage is valid for a holder of a minimum of 5,000 units at any point in time.

Public Balanced Fund NAV = 0.7455

KnowThyMoney: What the statement above tells you that it is the number of units that determine the value of your coverage. Lets say I have 10,000 units , it means I have RM10,000 of coverage. :) (It is not the total value of your units that determine the value of coverage)

Hence with PBF trading at NAV=0.7455, you are getting a cheap discount for every RM1 protection that 1 unit of PBF provides. Do you get what i mean here?!  

For example, now by buying 1 unit of PBF at NAV=0.7455 , I get RM1 protection.

What is good about this feature is:
-->Don't need to get a medical checkout to get this coverage.
--> For older person, you would get hammered to the high premium due to old age.

Note: There are a few funds with these feature for Mutual Fund, do search it out and ask your agent!! They are paid to answer your questions.

Cons:
Public Balanced Fund might not provide a higher return as compared to more aggressive natured funds based on equity, etc. 

Nevertheless, it is my standby place to get back into equity based funds when the market tanks while getting this beneficial feature of insurance coverage.


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2 comments

  1. ChampDog // 10:50 PM  

    So only Public Balanced Fund has such offer? What about the rest? I think I don't have this fund.

    I'm curious. Do you need to sign anything or this is done automatically? :)

  2. Kris // 7:44 PM  

    No need to sign anything besides the purchase form. I believe there is another fund that has this feature. I cannot remember the name. Nevertheless, why I chose this fund is over the other one (if i remember correctly) that it has consistent good returns over the years.