If you are thinking of buying life insurance, we got you covered because we have picked and selected the top 6 best life insurance in Malaysia, just for you!
But wait! Before we go deeper into the life insurance products in Malaysia, it is best that we understand what life insurance all is about, as well as why you need it.
What is life insurance in Malaysia?
In simple terms, Life Insurance is a contract between the insurance company and the policyholder, whereby the insurance company agrees to pay the named beneficiaries a sum of money upon the death of the policyholder.
There are two types of life insurance policies available in the market, which is term life insurance and whole life insurance.
Term Life Insurance
The term life insurance is a life insurance contract that lasts for a certain period of time or a certain term. The term is pre-determined during the starting of the insurance period and is up to the policyholder to determine the term period. Commonly, the term life insurance is available for a term of 10 years, 20 years, or 30 years.
The term life insurance is usually chosen as an option to assure the life of a policyholder for a certain period only. This is applicable if the policyholder is living abroad for a certain period of time. For instance, the policyholder receives a contract to work in another country for 10 years, thus, he took term life insurance to cover for his death during the term he is abroad.
Whole Life Insurance
Whereas whole life insurance is a type of life insurance policy that stays in force for the policyholder’s entire life. The policy carries other benefits for the policyholder and can cover a wider range of items. Whole life insurance also comes with an accumulated cash value, which provides better benefits for the policyholder.
If you are planning for a better future, as well as financial freedom for you and your family, the best choice is to opt for the whole life insurance.
Why Do You Need Life Insurance?
Life insurance is a method is ensuring that your loved ones have a better life after your death. This is especially if you are the breadwinner of the family, and the entire family is depending on you financially. Life insurance acts as a tool of assurance to make sure your family has a better future, even after the breadwinner loss the ability to work due to disability, or upon the death of the breadwinner.
Although you might think that this is not important, maybe you also need to understand that death is something that nobody can forecast. Nobody is going to be fully prepared upon their own death; thus, it is best to get life insurance to secure a better future for your dependents.
What are the 6 best life insurance in Malaysia?
Now that you have a basic understanding of life insurance in Malaysia, as well as the main function of the insurance policy, we are going to review the 6 best whole life insurance policies in Malaysia. Our experts had picked the best insurance policies and consider the amazing benefits and coverage that are going to be super-duper useful for you and your family.
You can continue reading to go through our selected best life insurance policies.
AIA Malaysia is one of the life insurances companies in Malaysia that provides top-quality life insurance products. The A-Life Wealth Builder is a type of Life Insurance that comes together with an investment-linked plan.
The insurance policy is able to provide a high coverage amount as well as assures that your family is always protected financially upon your death.
Main Coverage
The main coverage of this insurance policy includes a lump sum cash payment of 100% of the sum insured amount in the event that you pass away or suffer from a total and permanent disability (TPD). The lump-sum cash payment is doubled if the policyholder passes away due to an accident, and three times the sum-covered amount if the accident happens in a bus, train, or airplane. The lump-sum cash payment is up to six times if the policyholder passes away due to a natural disaster.
Additional Benefit
Since this policy is also an investment link insurance policy, the insurance company is also providing benefit rewards for the policyholder that if they select a longer coverage term or a higher coverage amount. This benefit is also applicable if the policyholder made no withdrawals from the account value and premiums paid are up to date.
And another super-duper amazing benefit is that this policy allows you to get covered up to RM4million of the sum insured, without even going to a medical check-up. This benefit is however subject to the policyholder’s age and health condition.
With this policy, you can also sign up as a member of the AIA Vitality and are entitled to receive an additional benefit under the Vitality Wealth Booster. This provides additional value based on your accumulated cash value.
Hit to AIA Malaysia website, or talk to one of their AIA Life Planners to learn more about this Life Insurance policy and the benefits you get to enjoy under the policy.
Zurich Malaysia introduces the Zurich ValueLife, an insurance policy that offers life protection, as well as being a highly flexible insurance policy that includes additional benefits for riders like critical illness, medical coverage, waiver of premium, and more.
Main Coverage
The main coverage under the Zurich ValueLife is the high protection of up to 300% of the basic sum insured amount. For death or total permanent disability (TPD), the beneficiaries are entitled to receive a lump sum cash payout of 100% of the basic sum insured.
While for public conveyance accidental death, meaning that the policyholder encounter death while commuting in a public conveyance, the beneficiaries are entitled to 200% of the basic sum insured.
And if the policyholder passes away in an overseas accidental death, the beneficiaries are entitled to 300% of the basic sum insured.
All the lump sums cash pay-out is inclusive of the Investment Account Value, which basically results in more than the basic sum insured.
This way, you can always ensure that your beneficiaries are going to have a better future, and you know you can always rely on the insurance policy to provide financial stability to your loved ones when you are no longer around.
Additional Benefits
One of the best benefits under this policy is the Spouse Care Privilege. This ensures that your spouse can purchase a life policy under the same insurance policy for up to 50% of the total sum insured without any medical screening and underwriting after the policyholder passes away. So, even after the policyholder is no longer around, the spouse gets to continue the insurance policy.
The Zurich ValueLife is also a very flexible life insurance policy that gives you the freedom to tailor the protection and coverage amount, as well as adjust the premium according to your affordability.
Prudential Assurance Malaysia has a wide range of life insurance in Malaysia, and the PRUWith You is one of their best life insurance products.
The insurance policy is a hybrid of a life insurance and investment plan, and the policy is highly flexible as well as able to protect the entire family.
Main Coverage
The main protection provided under this insurance policy is a lump sum cash payment in the event of death, accidents, critical illness, or total permanent disability (TPD), as well as when you reach 100 years old.
However, you have the freedom to choose to stop your plan when you reach 60 years old, 70 years old, 80 years old, 90 years old, or 100 years old.
The minimum coverage under this life insurance policy is RM10,000.00 and the maximum coverage is determined by the insurance company according to our circumstances.
This shows that the PRUWith You from Prudential Assurance Malaysia is totally a very flexible insurance policy, as you are able to tailor the coverage according to your preferences.
Additional Benefits
One of the most interesting benefits of this insurance policy is that the insurance company celebrates every milestone that you achieved in your life. The insurance company is paying a lump sum of RM500.00 when you have achieved things like getting married, giving birth to a child, buying a new home, doubling your salary, or traveling to 10 different countries.
And under this insurance policy, the premium payment is highly low too. This is a very good benefit as it makes this insurance policy highly affordable. The PRUWith You is available in premium as low as RM50.00 per month for children under the age of 18 years old, and RM100.00 per month for adults aged 19 years old to 70 years old. However, the insurance premium is largely depending on the amount of coverage, age, gender, and smoking status.
The minimum age to buy this insurance policy is as young as 14 weeks into pregnancy for coverage incepting before birth, and between the age of 1-year-old to 70 years old for coverage incepting after birth.
If you are looking for a comprehensive insurance policy that covers the life of the policyholder, as well as providing medical coverage and critical illness coverage, then the Enrich Life Plan Insurance by Etiqa Life Insurance is the perfect insurance policy for you and your family.
Main Coverage
The main things that are covered under the Enrich Life Plan Insurance include the lump sum payment of the basic sum insured with an additional bonus and accumulated cash value, in the event of death or total permanent disability (TPD).
Additional Benefits
On top of the basic life insurance coverage, the insurance policy is also providing medical coverage, which provides wide access to a lot of medical benefits including hospitalization. This is possible if you include the Ultra Medic Rider in your basic policy.
You can also include the Maternity Rider which allows access to coverage of female-related illnesses and includes recovery benefits. This is highly beneficial, as the high cases of female-related illnesses are worrying, and having an insurance policy that covers it is very advantageous.
In addition, the insurance policy is also allowing for an add-on Critical Illness Coverage with the Premier Critical Illness Rider. This is to enhance the coverage of your existing insurance policy, which provides coverage of a lump sum of the rider sum insured shall you are diagnosed with 36 types of critical illness from the list provided by the insurance company.
You can also include other riders or benefits into the insurance policy to provide coverage for hospital income, accidents, or junior critical illnesses.
The additional benefits add-on allows you to tailor your life insurance policy according to your preferences, and adjust the coverage, premium, as well as protection according to you and your family’s needs.
This way, you can have an insurance policy that covers all the necessary for the entire family and pays only for the coverage that you need.
Check Etiqa’s website to learn more about the benefits of the Enrich Life Plan Insurance by Etiqa Life Insurance, and how you can enjoy the wide range of benefits along with life coverage and protection.
Hong Leong Assurance introduces the HLA CompleteCover that provides insurance protection throughout your life. The insurance policy is a regular premium investment-linked plan that provides coverage against death, as well as allowing you to add-on benefits to make the coverage more comprehensive.
Main Coverage
Under the basic plan, the policyholder gets coverage of the total sum insured amount and the desired period of coverage, or upon termination. The death benefit under this insurance policy is the cash pay-out of the basic sum insured in the event of the death of the policyholder.
And upon the maturity of the insurance policy, and the policyholder chooses not to extend the coverage, then the policyholder can enjoy the maturity benefit that is payable depending on the age of the policyholder at the maturity date.
Additional Benefits
Under this insurance policy, the policyholder can also include other benefits to make coverage and protection more comprehensive. You have a list of options to include as the add-on benefits into the insurance policy.
Add on additional benefits includes Life Protection for your family’s financial protection when you are no longer around. You can also include Critical Illness coverage which protects against early to late-stage critical illnesses and extends its coverage to gender-specific and junior-specific illnesses.
Other than that, you also be given the option to add medical coverage, which provides protection for hospitalization costs and medical expenses, as well as include pregnancy protection and medical costs.
One of the outstanding benefits under this insurance policy is income protection coverage, where you can include protection for your income. This is doable and the insurance policy will protect your finances in the event of accidental death and disability.
You can visit Hong Leong Assurance’s website to learn more about this insurance policy, as well as to discover the different types of life protection available by them. Explore and discover the best life insurance policies offered by Hong Leong Assurance.
Takaful Ikhlas introduces a Life Takaful policy that is super duper amazing and has the best benefits and coverages. If you are keen on Takaful coverage, then you can consider the Ikhlas Bersama by Takaful Ikhlas.
Main Coverage
Like any other life insurance policy, the Ikhlas Bersama by Takaful Ikhlas provides death benefit coverage payable to your beneficiaries. The amount payable consists of your sum insured, plus all the savings in the policyholder’s individual fund.
It is also providing an Accelerated Death Expense coverage, which is immediate financial assistance, consisting of 10% of the policy’s basic sum insured, or up to RM20,000.00. the accelerated death payment will be made instantly without any prior request made from the beneficiaries.
Additional Benefits
On top of the death benefit, the Ikhlas Bersama is also providing additional coverage that allows you to extend the coverage under the policy.
For instance, you can use the top-up option which provides the flexibility of either regular or ad-hoc top-up to grow your savings. This way you can have the flexibility to increase the savings whenever you have extra cash.
And shall the rainy days come; you have the option to do partial withdrawal from your savings. This can be done at any time.
The maturity benefit under this policy allows you to enjoy cash value in your savings upon maturity. This is achievable when the policy reaches its maturity.
Discover how Ikhlas Bersama is going to provide you with the best live coverage and protection, as well as ensure you have a better future with its flexible top-up, withdrawal, and savings plan.
Frequently Asked Questions (FAQs)
Can you cash out life insurance before you die?
Yes, but this is only applicable to permanent life insurance like the whole life insurance. The term life insurance policies cannot be cashed out before death, because this type of insurance policy does not come with any build-up or accumulated cash value.
What happens when a whole life policy is paid up?
Paid-up life insurance is referring to the life insurance policy that has been paid in full, and the insurance policy remains in force. The paid-up insurance policy would not require you to pay any premiums anymore. In this case, the cash value will continue to grow and accumulate.
How long do you have to have a life insurance policy before you can use it?
The waiting period before the coverage takes effect differed from one policy to another. You can check on this matter with the insurance agent before making the decision on buying the life insurance policy. Either, you can select one from our handpicked 5 best life insurance in Malaysia.
However, on average, the amount of time for the life insurance coverage to start is within one to two years.
Buying Guides
Sum Insured
The sum insured is the amount that is payable upon the death of the policyholder. This amount is pre-determined upon the start of the insurance policy, and up to the policyholder to decide. You can opt for a higher sum insured value for your loved ones to get a better cash pay-out upon your death.
Additional Benefits
There are always additional benefits that the insurance company offers together with the life insurance product. For example, some best Life Insurance in Malaysia comes with an investment link benefits, whereby you can get better cash value.
Choose add-on benefits that you can include in your life insurance policy, and that will be super-duper useful for you and your family.
Premium
The premium payment is one of the most important factors to look into as this is what you need to pay. Make sure the premium of your life insurance is affordable and according to your budget. This way, you can always have your budget in control, and the insurance policy is not going to cause you to be overbudget every month.
Conclusion
Prepare a better future for you and your loved ones. You have the power to change and create the best future for your loved one today. With the assistance of a life insurance policy, you can get to provide a brighter future for your loved ones.
The additional benefits that you can add to your life insurance policy are also very interesting as it is providing you the option of extending the insurance policy’s coverage and protection, as well as tailor the insurance policy according to your needs and preferences.
Now you can sit back, relax, and enjoy living a quality life with your family, knowing that anything that happens to you, your loved ones will always be protected. If you think this article The Top 6 Best Life Insurance in Malaysia have provided you with some good information, please share it on your social media platforms.