Understanding Life Insurance: Guide to The Basics of Life Insurance
In this article, we explain term life insurance and its importance, life insurance with critical illness riders and how to choose a suitable plan. Whether you're looking for the best life insurance policy or simply want to learn more about life insurance, this guide is a great place to find affordable life insurance in Malaysia.
How life insurance works?
Policyowner pays premium
Premiums pooled within the Insurance Fund
Insurance company pays benefits to policyowners
Type of life insurance plans
Learn more about life insurance in Malaysia in your preferred language:
What is life insurance?
Life insurance is a contract between a life insurance company and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to one or more named beneficiaries upon the death of the insured in exchange for premiums paid by the policyholder during their lifetime.
Why is life insurance important?
Life insurance ensures financial continuity by providing financial support for your family after your death. It is a crucial investment as it helps your loved ones with the following expenses:
Alleviating the financial burden on your family
Providing financial security and stability
Assisting with daily expenses
Covering college and university fees for your children
Paying off your house mortgage
Covering funeral expenses
Safeguarding your business, if you own one
Supporting your spouse and family
Enabling you to leave an inheritance
What is life insurance with an investment?
Life insurance with investment is a policy that combines life insurance coverage with an investment component. The policyholder pays premiums, which are invested in stocks, bonds, or other investment vehicles, and grows over time.
Does life insurance cover critical illness?
A critical illness rider can usually be added on to your life insurance policy. In fact, it’s a good idea to do so as this rider will cover critical illnesses, such as cancer, heart attack, and stroke. If the policyholder is diagnosed with a covered illness, they receive a lump-sum payment.
How do I choose the best life insurance policy in Malaysia?
There are many life insurance products in the market. To make the right choice for life insurance coverage, evaluating your policy objectives and determining the appropriate policy that meets your requirements is important. In addition, opting for a reputable provider when purchasing life insurance is also advisable. To achieve this, our wealth planner can assist you in identifying your requirements and suggesting the most suitable policy option.
Does EPF provide life insurance?
Malaysia’s Employee Provident Fund (EPF) does not provide life insurance coverage directly. However, EPF members can use funds in account 2 to purchase a life insurance policy from an insurance provider. Secure the future of your loved your loved ones with PRUGuard Life, Prudential’s life insurance in partnership with EPF.