What can Life Insurance help you with?

In the insurance market, a variety of policies are available to suit different needs, such as Term Life, Whole Life, Endowment, Investment-link, and Universal Life, which are classified as Basic Life policies. These policies provide coverage for Death and/or TPD (Total Permanent & Disability). Furthermore, there are specialized insurance plans available that offer coverage for specific risks like hospitalization and surgical benefits (Medical Plan), critical illnesses and personal accidents. By selecting a combination of benefits that fits your budget and requirements, you can obtain the appropriate coverage without overburdening yourself. It is recommended to seek professional advice to ensure that you make an informed decision about your insurance plan.

Changing Insurance Needs Across Life Stages

Age 0 - 18

Health Insurance for Children or Pre-born

Health insurance can encompass both medical plans and critical illness coverage.

Health insurance for children provides coverage for medical expenses such as hospitalization, surgery, and medications, which is crucial as children are more susceptible to illnesses and injuries. If the budget allows, adding a critical illness benefit can provide a lump sum of cash that can be used to purchase medicines not covered by the medical plan or to support parents in dealing with the situation.

Age 18 - 30

Health Insurance, Income Protection

The focus of income protection should be on critical illness (CI), personal accident (PA), or total permanent and disability (TPD) insurance.

Life insurance provides financial protection for loved ones in case of unexpected death, disability insurance provides income protection in case of disability, and health insurance covers medical expenses. These insurances become increasingly important as people begin to build their careers, start families, and accumulate assets.

Age 30 - 50

Health Insurance, Debts Cancellation Plan, Legacy Plan, Keyman

Debt cancellation, Legacy planning, and Keyman insurance policies primarily focus on providing coverage in the event of death or TPD. While adding CI or PA coverage is optional, it may be beneficial to consider these additional options to enhance your overall protection.

In addition to the previous insurances, it may be necessary to increase protection on critical illness and personal accident insurance, particularly if you have invested in or own valuable assets with loans. Mortgage insurance, such as MRTA or MLTA, can also aid in settling liabilities in the event of unforeseen circumstances, including debt cancellation plans. If the budget allows, starting a whole life policy can serve as a legacy fund for your loved ones.

If you own a business, Keyman Insurance can help ensure business continuity and protect the shareholders.

Age 50+

Health Insurance, Estate Funding

Estate funding typically involves the provision of death benefits and is generally recommended for coverage up to the age of 80 or older.

At this stage of life, it is crucial to ensure that your health insurance coverage is sufficient to cover hospital and surgical expenses. Additionally, life insurance can serve as estate funding in the event of your passing, providing a source of funds that is not frozen to settle final expenses such as funeral fees, taxes, and professional fees.

Life Insurance

Key Highlights

Monthly Premium:
Starts as low as RM 130 and can go up to RM 10,000 or more, depending on the sum insured.
Sum Insured:
Can range from a minimum of RM 5,000 up to millions and more, depending on your financial needs.
Coverage Term:
For debt cancellation or keyman insurance, coverage can last up to age 60 or 70. For legacy or estate funding, it is advisable to have coverage up to at least age 80, or ideally age 100.

Main Functions:

Life insurance serves two main functions: covering the financial risks associated with death or total and permanent disability (TPD). There are various types of life insurance policies available, including whole life, term life, investment-linked, endowment, and universal life insurance.

Some policies allow for the accumulation of cash value, which can be used to pay premiums or taken out as a loan. Endowment or certain types of universal life insurance plans can serve as wealth accumulation tools for purposes such as child education or retirement planning.

In addition, life insurance policies can be designed for specific needs such as mortgage protection, such as Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA), estate planning, legacy planning, or providing financial support for one's family or oneself.

Tips：

It's important to identify your financial goals and priorities before purchasing a whole life insurance plan.
In Malaysia, most whole life plans in the market are investment-linked or universal life policies.
The coverage term of these plans is not guaranteed as the cash value of the policy may affect the coverage term.

Medical Plan
(Hospitalisation & Surgical Benefits)

Key Highlights

Monthly Premium:
Preborn - 18: RM 150 ~ RM 250
18 - 30: RM 200 ~ RM 500
30 - 40: RM 300 ~ RM 500
40 - 50: RM 300 ~ RM 800
50 - 70: RM 600 ~ RM 1,000+
Sum Insured:
Annual Limit: 100K ~ 5million
Lifetime Limit: Unlimited
Coverage Term:
Typically up to age 80 or 100.

Main Functions:

A medical plan provides financial protection for unexpected health events such as accidents, illnesses, and hospitalizations. It covers the cost of medical expenses such as doctor consultations, diagnostic tests, medications, and surgeries. With a medical plan, you can have peace of mind knowing that you and your loved ones are financially prepared for any health-related situation.

Tips：

Ensure the coverage lasts up to at least age 80
If it's a rider plan, check that the cash value is sufficient to sustain it
Standalone plans are generally more affordable, but some may not be guaranteed renewable.
If you already have group insurance, consider adding "deductibles" to your medical plan to help reduce your premium.

Critical Illness

Key Highlights

Monthly Premium:
Starting from RM130 per month, depending on the sum insured.
Sum Insured:
Based on 2-5 years of total income for income protection.
Coverage Term:
For income protection, cover up to age 60 or 70. For emergency coverage, consider longer terms.

Main Functions:

Critical illness insurance offers a lump sum payment to help manage your financial expenses in the event of a serious illness diagnosis. By providing financial support during challenging times, it allows you to focus on your recovery with peace of mind.

In some cases, certain critical illnesses may not result in a lump sum payment but can instead waive premiums, reducing financial burdens while maintaining insurance protection.

Tips：

Identify your goals, whether it's for long-term care or loss of job and income, to determine the appropriate sum insured.
Consider a combination of traditional critical illness coverage and new versions that cover early-stage illnesses.
Look into your family health history to determine what types of illnesses are more likely to occur and what type of critical illness coverage you should consider.

Personal Accident (PA)

Key Highlights

Yearly Premium:
Starts as low as RM 200 per year and can go up to thousands depending on the sum insured.
Sum Insured:
Calculated based on 2-5 years of total income for income protection, plus estimated long-term care expenses.
Coverage Term:
Typically covers up to age 70, but some plans may provide coverage up to age 80.

Main Functions:

It's a type of insurance policy that provides financial compensation in the event of an accident resulting in injury, disability, or death. It cover medical expenses, hospitalization, accidental death, and dismemberment. Additionally, you can add optional benefits like a weekly allowance to help cope with loss of income due to the accident. PA insurance offers financial security for you and your family during difficult times, ensuring that you can continue to receive the care and support you need to recover.

Tips：

Yearly renewal comes with bonuses.
Weekly indemnity benefits available.
Standalone plans are available with additional perks.

Case Studies

If you want to know more how the real life to make sure this products, you can refer to case studies I have been conducted for my clies.

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