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    • Your Guide to Buying Your First Life Insurance



    Your Guide to Buying Your First Life Insurance

    What’s the purpose of life insurance? Do I need it if I’m young? Can I buy it when I’m old? How much coverage do I need? While you may have a life insurance policy, there is a possibility you are not making the most out of it and are underinsured.

    We answer the most frequently asked questions when buying life insurance.

    What is life insurance for?

    Life insurance is protection against the financial impact that a person’s family may experience in the event of that person’s passing OR a Total & Permanent Disability (TPD)

    The amount called the payout can be used to cover:

    • Immediate expenses
    • The loss of income
    • The payee's debt

    What are the Different Types of Life Insurance Available?

    TERM INSURANCE

    • A Term life insurance provides coverage for a set period (the “Term” of coverage)
    • It is the least expensive form of life insurance for people under the age of 50
    • It is the most basic policy with no cash value (i.e. no returns on maturity/surrender of policy)

    WHOLE LIFE INSURANCE

    • A Whole life insurance provides coverage throughout a person’s lifetime
    • Premium payments are higher than term life policies, but premiums do not increase with age
    • It offers a guaranteed cash value/return upon maturity or surrender of policy
    • You can build tax-deferred cash values with whole life insurance (i.e. only pay the tax on the insurance in the future)

    INVESTMENT LINKED INSURANCE

    • An insurance plan that also has investment capabilities
    • Premium payments are divided between payment for the life insurance and investments in funds that you can choose
    • You can also invest more when you have extra money or withdraw from your investment funds if required

    What is a Takaful Plan?

    Takaful is a type of protection plan which abides by Islamic or Shariah rules on finance. Members contribute money into a pooling system in order to guarantee each other against losses or damages incurred.

    What affects my premium?

    • A premium is the payment you make periodically for your insurance policy 
    • Certain factors affect the amount of premium you pay for your insurance:
    Accident Pro Prime

    AGE

    The younger you are when you purchase the life plan, the more affordable it will be

    Accident Pro Prime

    RISK OF OCCUPATION

    High-risk occupations have a higher premium tied to it

    Accident Pro Prime

    HEALTH CONDITION

    Certain factors such as smoking, BMI, etc will affect your eligibility and premium rates

    Accident Pro Prime

    TYPE OF POLICY

    Your premiums will depend on the length of your policy term and the amount that you are covered for



    How do I calculate how much coverage I need?

    • The amount you are covered for is set at your time of purchase but can be adjusted as you grow in age
    • As a rule of thumb, you should reassess your coverage if your lifestyle has changed, for example, if you recently got married or have a child on the way
    • Input your details below to find out your ideal recommended coverage

     

    References
    https://www.nerdwallet.com/blog/insurance/how-much-life-insurance-do-i-need/
    http://www.lifehappens.org/insurance-overview/life-insurance/calculate-your-needs/
    https://www.forbes.com/sites/lawrencelight/2013/04/29/how-much-life-insurance-do-i-need/
    http://www.cnbc.com/2014/10/03/how-much-life-insurance-do-you-need.html
    http://www.insureuonline.org/consumer_life_ten_tips.htm
    http://malaysiandigest.com/news/600094-90-per-cent-of-life-insured-malaysians-under-insured-says-liam.html
    https://www.imoney.my/articles/the-essentials-of-life-insurance-in-malaysia
    http://www.investinganswers.com/financial-dictionary/tax-center/tax-deferred-2477

    The above articles are intended for informational purposes only. AIA accepts no responsibility for loss which may arise from reliance on information contained in the articles.

    Accident Pro Prime

    Having HPV does not mean you have cervical cancer.

    Accident Pro Prime

    HPV is transmitted through sexual intercourse or genital skin-to-skin contact, which is why a condom itself is not an effective preventive measure.

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    CONTACT AIA
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    1300-88-1899
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    Customer Relations Unit Menara AIA, 99 Jalan Ampang 50450 Kuala Lumpur

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