About Life Insurance: The what and how
Life Insurance has often been deemed by financial experts as one of the most crucial aspects of an individual’s sturdy financial planning. Not only can it provide death benefits to your beneficiaries, it can also prove to be a source of saving should you withdraw early. Whichever type of life insurance you choose, it’s important to remember that this form of policy stays with you throughout the course of your life-and well beyond that.
If you are the sole breadwinner of your family, then life insurance might be more important for you than you’d think. Your life insurance can make sure that should something unfortunate happen to you, your family is financially taken care of.
But wait, there’s much more!
Think of life insurance as a gift that keeps on giving. In addition to the aforementioned benefits, Life insurance can also be useful for you to create an inheritance for your heirs, which could be your spouse, children, parents or loved ones- anyone who you think could use those means of financial security by naming your heirs as beneficiaries.
To know more how life insurance can benefit you and your family, read more here.
Lastly, in the event that some life policies are not paid out as death benefits, they also allow you to be borrowed or withdrawn on the owner’s request.
Types of Life Insurance
The primary distinction between life policies is either term or whole.
- Term life insurance only covers you for a definite and limited period of time, which could range from 5 years to even 30 depending on the term that you choose. Your beneficiaries will be eligible to receive benefits should something happen to you during your covered term, however should you live until the end of your term, no benefits can be issued. Term policy can either be discontinued or renewed as per your desire.
- On the other hand, whole life insurance covers you for the entirety of your lifespan. Once the policy is in effect, and as long as you pay the required premiums, you do not have to worry about your coverage ending. Your beneficiary will always receive the benefit payout, no matter what age you pass away.
The advantage of term life insurance policies is that it is relatively affordable. The premium of a term life policy is significantly lower compared to a whole life policy with the same sum of coverage.
Whole life insurance has a higher premium because it covers you for a lifetime and also comes with cash value. However, even though the premium for whole life insurance is higher, it usually stays the same throughout the policy, whereas the premium for a term life policy usually increases when you renew it.
About Medical Insurance: The what and how
Medical insurance covers the cost of medical and surgical expenses incurred by you during a given period. The insured either has to pay such expenses out-of-pocket or is later reimbursed by the insurer or the insurance company settles the bill directly with the hospital. The benefit and features so provided are subject to the terms and conditions of the insurance policy.
Medical Insurance helps you cover the cost of private medical treatment, such as the cost of hospitalization and healthcare services, if you are diagnosed with covered illnesses or have had an accident.
The coverage is provided by a licensed insurance company in exchange for which you pay premiums. PolicyStreet is an authorized agent so you can be sure that you are in trustworthy hands when you buy a Medical and Health Insurance (MHI) policy. A MHI policy also contains certain exclusions, just like other insurance policies. Those exclusions mainly pertain to pre-existing conditions and illnesses. You might also not be eligible for any claim arising from any medical or physical conditions within the first 30 days of the cover, except for accidental injuries.
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Differences between medical and life insurance
| Basis | Life Insurance | Medical Insurance |
|---|---|---|
| Offered coverage | Limited for term, lifetime for full life insurance. | Long term health insurance plans have tenure of two to three years |
| Flexibility’ | Adjustable life insurance is a hybrid policy that combines characteristics from term life and whole life insurance. Also known as flexible premium adjustable life insurance, the policy has a cash value component that grows with the insurer’s financial performance but has a guaranteed minimum interest rate. | Recently, Insurance provider AIA Malaysia has announced two new plans that provide end-to-end protection and comprehensive health umbrella for the whole family.
Called A-Life Beyond Critical Care and A-Plus Total Health, they are part of its conscious, health-first approach to expansions in its portfolio of health solutions. |
| Claims | Easy, hassle-free claiming process with PolicyStreet! | Easy, hassle-free claiming process with PolicyStreet! |
How should I purchase my insurance?
We’re glad you asked! PolicyStreet is an authorised one stop platform for all your insurance needs, approved by Bank Negara Malaysia. As an accredited financial advisor, we leave no ends loose to make policies simple,easy and affordable for you and we assist you in getting the type of Insurance best suited for the needs of you and your family.
Our insurtech platform is easy to use and our exemplary customer assistance ensures that you have an unmatched insurance purchase experience. For further queries on motor, life or medical insurance, please do visit our website www.policystreet.com
