Understanding Life Insurance: Guide to The Basics of Life Insurance

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.

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.

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.

The amount of coverage needed depends on factors such as your current financial obligations, income replacement needs, and long-term goals. Speaking to one of our team at Prudential can help determine an appropriate coverage amount tailored to individual circumstances.

The death benefit refers to the amount paid to beneficiaries upon the policyholder’s death. It provides financial support and can be used to cover expenses such as funeral costs, outstanding debts, and ongoing living expenses for the beneficiaries.

Premiums are calculated based on factors such as age, health, coverage amount, and the type of policy. Typically, healthy individuals and those purchasing coverage at a younger age may enjoy lower premiums.

This depends. A medical examination may be required during the underwriting process. Your health history may influence the premiums and coverage offered.

Some life insurance policies offer this flexibility, allowing you to adjust coverage amounts or convert term policies to permanent ones. It’s important to review your policy periodically to ensure it continues to align with your evolving needs.

Cash value refers to a feature often found in investment-linked policies. It represents the policy's savings or investment component, allowing the policyholder to accumulate funds over time.

Yes, you can usually purchase life insurance for another person, such as a spouse, child, or dependent.

Your life insurance policy may lapse if you stop paying premiums. This means it loses its active status. Some policies have a grace period, but it’s crucial to understand the consequences, which may include the loss of coverage and potential financial implications.

Yes, it is possible to have multiple life insurance policies. In fact, this can be beneficial if your coverage needs change over time. Ensure that your policies' total coverage aligns with your financial goals and obligations.

Underwriting refers to a process by which an insurance company evaluates your risk and determines the terms of your coverage. Health, lifestyle, age, and occupation are some factors that influence the premiums and coverage offered.

Yes, most life insurance policies allow the change of beneficiaries. It is important to review and update your beneficiaries after significant life events, such as marriage or the birth of children, to ensure that your wishes are reflected in the policy.

Life insurance riders are optional add-ons to a life insurance policy. They work to provide additional benefits, protection, or customization. For instance, a waiver of premiums rider waives premiums in certain circumstances, or an accidental death rider, which provides an additional benefit if death occurs due to an accident.

Yes, it is possible to obtain life insurance with pre-existing health conditions. However, your health may influence the type of coverage and premiums, and thus, certain conditions might lead to higher premiums.

If you outlive a term life insurance policy, there is no payout at the end of the term. However, there may be the option to renew the policy, convert it to a permanent one, or explore new coverage based on your current needs.

Individual life insurance is purchased independently and, thus, can be tailored to individual needs. Group life insurance is mostly offered by employers and provides coverage to a group of people, often with limited customisation options.

Yes. Life insurance for your child can provide financial protection and may also accumulate cash value over time. Securing coverage at a young age can potentially lock in lower premiums.

There is often a grace period during which you can make the payment without the policy lapsing. However, you must also understand the terms of the grace period and the potential consequences of missed or late payments.

Yes, you can. However, smoking may result in higher premiums due to the increased health risks it presents. Providing accurate information about smoking and other lifestyle habits during the application process is essential for accurate underwriting.

Life insurance generally covers death from most causes, including illness, accidents, and natural causes. However, there may be policy exclusions, such as suicide. Hence, it’s important to read and understand your policy coverage.

We recommend reviewing life insurance policies annually or when a significant life event occurs, such as marriage, divorce, birth of a child, or changes in financial status. Reviewing your policy regularly ensures that your coverage aligns with your current needs and goals.