What is life Insurance?

Life Insurance

Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event such as death of the individual who is insured

• Basic coverage for all type Life Insurance

1. Sum Assured (click here to know more)
2. Coverage for Critical Illness (click here for the list of Critical Illness)

How many types of Life Insurance available?

Basic types policies are

• Term insurance

This offers insurance protection for a limited period only whereby the money is paid up if you pass away or if you suffer total and permanent disability.

• Whole life insurance

Life-long protection and premiums are paid throughout your life and the money including any bonuses will be paid when you pass away or suffer total and permanent disability.

• Endowment

A combination of protection and savings whereby the money will be paid at the end of a specific period upon your demise or if you suffer total and permanent disability.

• Investment-linked

For investment-linked insurance, your premium is used to buy life insurance protection and units in a fund managed by the life insurance company. The benefits paid to you or your nominee will depend on the price of the units at the time you surrender your policy or when you pass away.

• Life annuity plan

Series of payments paid to you until you pass away. Types of annuity include immediate annuity or deferred annuity.

• Supplementary rider/cover

A rider is a supplement attached to the basic insurance plan such as endowment or whole life.

• Mortgage reducing term assurance (MRTA)

An insurance protection plan that covers the repayment of an outstanding property loan to the financial institution in the event of untimely death, disability or critical illness of the borrower.

Savings Vs Investment

SAVINGS

Every month you do savings of RM200.

End of the year , total accumulated RM2400 + + (Including interest) (0.3% if in saving account  3% if in Fix Deposit, 7% if in ASB)

Assume the savings constantly up to 5 years. Amounting RM12,000 ++

Unfortunately, you are diagnosed for Cancer preliminary level which needRM50,000 for treatment cost

Thanks for your savings, you have RM12,000 but you still need RM38,000.

You have 3 options to fund the balance

• Borrow

Family and friends will try their best to help you. But to borrow RM38,000 is near impossible unless your have a very rich relative.

• Sell your assets

Your maybe have one or two assets which can be sold. But it takes at least 6 months to sell a house for example. If your assets still under bank’s loan, yet you cant sell it off.

• Seek for Donation

Your saw on television, people seek  donation for themselves or their kids. Need money for surgery or treatment. If you are disable or really poor , you are qualified to seek donation under the television programme. But, you are income earner like executive in one big company, you will not getting any help by the donation programme because there are more needy people out there.

INSURANCE
Every month you do savings of RM200.

End of the year , total accumulated RM2400 + + (Including interest) (8%-9% in InvestmentLink or Takafulink plan )

In case something bad happen to you , death or total permanent disable , Sum Assured RM100,000 will be compensate to next of kin or to you. (Even you pay insurance just for one month which is RM200 )

Up to 5 years. Amounting RM12,000 ++

Unfortunately, you are diagnosed for Cancer preliminary level which needRM50,000 for treatment cost. Now Medical Card will cover all the cost for you. Limit RM500,000 per lifetime.

Plus, Rm20,000 compensation because diagnosed with one of the 36 critical illness.

Plus, when you been hospitalized, you will be receiving RM100 per day as hospital benefits.

If you unable to work and no money to pay your premium, Contributor plan will continue to pay it. As the result, you still receive Protection and your savings still continue growing until age 100.