WHOLE LIFE INSURANCE

Buying life insurance for you and your loved ones helps provide some financial security in times of hardship. The money from your policy will be paid to your loved ones when you pass away or to you should you suffer a total and permanent disability or loss.




INCOME TAX RELIEF

You can claim for tax relief of up to a maximum amount of RM6,000 per year for an ordinary life policy. This is inclusive of any contributions you have paid to an approved retirement benefit scheme such as the Employees Provident Fund or other pension scheme.

WHY SHOULD I BUY A LIFE INSURANCE

  • To ensure that your immediate family has some financial support after your demise
  • To finance your children’s education
  • To have a savings plan for the future so that you have a constant source of income after retirement
  • To ensure that you have extra income when your earnings are reduced due to serious illness or accident

CHOOSING A POLICY

When it comes to choosing a policy, always:

  • Consider a policy that best suits your life stage
  • Understand the scope of cover provided under the policy
  • Be aware of the circumstances should you need to switch policies

BASIC TYPE OF POLICIES

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.

For more information, you can download our booklet on whole life insurance.