Things You Thought You Knew About Life In­surance

AS OF 2014, MALAYSIA BOASTS A 93% RATE OF CAR OWN­ER­SHIP WITH 54% OF HOUSE­HOLDS HAV­ING MORE THAN ONE CAR. IN THE SAME YEAR, MO­BILE PEN­E­TRA­TION IN MALAYSIA STANDS AT 140%, WITH 47% OF MALAYSIANS OWN­ING MORE THAN ONE MO­BILE PHONE EACH.

Insurance - - CONTENTS - For more in­for­ma­tion about Ufor­life or to sign up for your very first life in­surance pol­icy, visit: www.ufor­life.com.my

Text Tokio Ma­rine Life

In stark con­trast against that, the com­bined in­surance and Taka­ful pen­e­tra­tion in Malaysia cur­rently stands at a pen­e­tra­tion rate of 56% – a rel­a­tively low num­ber com­pared to other de­vel­oped coun­tries.

Life in­surance helps peo­ple to pro­tect their fam­ily and loved ones fi­nan­cially in the event of an un­ex­pected death. Most Malaysians are gen­er­ally aware of what life in­surance is and what it does but there are also a lot of in­ac­cu­rate in­for­ma­tion and myths re­gard­ing life in­surance.

MYTH 1: LIFE IN­SURANCE IS TOO LARGE A COM­MIT­MENT FOR ME, ON TOP OF EVERY­THING ELSE I HAVE TO PAY FOR.

In life in­surance, ‘keep­ing to the essen­tials’ is the phi­los­o­phy that one should adopt. A ba­sic term life prod­uct – which is all most peo­ple need – is very af­ford­able; of­fer­ing the most pro­tec­tion at the low­est cost. With as lit­tle as RM9.85 per month for life in­surance pro­tec­tion of RM100,000 one can pur­chase a life in­surance pol­icy from the in­ter­net.

MYTH 2: I’M YOUNG AND STILL HEALTHY SO I CAN PUT OFF GET­TING A LIFE IN­SURANCE POL­ICY UN­TIL I NEED IT.

Life in­surance, like all in­surance, is the type of prod­uct you have to buy be­fore you need it. That means the time to pur­chase life in­surance is when you’re young and healthy. Age is one of the most crit­i­cal com­po­nents for in­surance com­pa­nies to de­ter­mine life in­surance pre­mi­ums; the younger you are when you ap­ply for a life in­surance pol­icy, the lower the monthly pre­mium you’ll have to pay. If you wait, and you de­velop a se­ri­ous med­i­cal prob­lem, you may not be able to get the cov­er­age you want. In ad­di­tion to that, when you are younger with a young fam­ily, you will need more life cover as your chil­dren and spouse are likely to have a long life ahead of them.

MYTH 3: THERE IS NO NEED TO GET A PER­SONAL LIFE IN­SURANCE POL­ICY SINCE MY JOB AL­READY OF­FERS IT AS PART OF MY EM­PLOY­MENT.

Hav­ing a life in­surance pol­icy through work is a great ben­e­fit – al­beit a tem­po­rary one; as the cov­er­age will end if and when you leave your po­si­tion. A per­sonal life in­surance pol­icy en­sures that you re­main pro­tected no mat­ter where you work. In ad­di­tion to that, most group term poli­cies are in­suf­fi­cient – typ­i­cally amount­ing to about two or three times your an­nual in­come. A gen­eral rule of thumb is that the death ben­e­fit on your pol­icy is 10 times the amount of your an­nual salary. To de­pend en­tirely on the pol­icy of­fered at work is cer­tainly not enough to keep your fam­ily ad­e­quately pro­tected.

IT’S TIME TO GET PRO­TECTED!

Be­ing cov­ered by a life in­surance pol­icy means that your ap­pointed ben­e­fi­cia­ries will be taken care of in the event of your un­ex­pected death. Life in­surance should be seen as a ne­ces­sity and it is high time Malaysians pri­ori­tise a life in­surance pol­icy as their very first in­vest­ment into liv­ing a re­spon­si­ble life.

Launched last year, Tokio Ma­rine Life In­surance Malaysia Bhd in col­lab­o­ra­tion with Ufor­life in­tro­duced Malaysia’s first in­ter­net in­surance plat­form. One can pur­chase life in­surance at a click of a but­ton and re­ceives an e-pol­icy in­stantly. De­signed with the needs of con­sumers in mind, Tokio Ma­rine Life is com­mit­ted to help­ing more Malaysians get in­sured by of­fer­ing a sim­ple, instant and af­ford­able way to buy life in­surance on­line.

All life in­surance poli­cies pur­chased on­line is un­der­writ­ten by Tokio Ma­rine Life In­surance Malaysia, a lead­ing life in­surer with a his­tory of over 65 years in Malaysia.

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