Term Life insurance in Malaysia – What you should know?

When it comes to buying a life insurance policy, it is never too late to start. Planning can be done as early as possible and when you are financially ready. In fact, it should be among your priorities as soon as you start earning your own income. However, there is so much information out there, this can sometimes be very confusing.

The Gist of Life Insurance

So, what is it about life insurance which is so important that you should be aware of before heading out to buy one? One thing for sure, it is a long-term commitment that you will enter into. What is it really and what does it entail?
In Malaysia, the phrase ‘Term Life Insurance’ is very common. It is a type of insurance that gives you a payout in a lump sum when necessary. This can be in the event of death or Total Permanent Disability. In some cases, term life insurance is known as just life insurance.

In an event that something unfortunate happened to you, there is some form of financial protection for your family and loved ones. The key benefit of a term life insurance is a fixed amount of money (often called a lump sum) for the premiums you paid over the years. In life insurance, this becomes possible in the event of death while it can cover critical illness and other disabilities.

How important is Term Life Insurance?

This deals primarily with a subject usually seen as taboo. It is never a good thing to plan ahead of death but a life insurance policy is one that provides you with a guarantee of a return for your family members if something unfortunate happened. This can then be used to help them continue with life if there are still young ones who need to continue studying or if there are still loans that need to be fulfilled.

Important terms you should know about life insurance

When it comes to how much you should buy your life insurance, it depends on several factors. First and foremost is how much you can afford and your age. The earlier you start, the lower the premium will be. Here are some things that you must know:

  • Sum Assured – This refers to the coverage and the amount you decide. Based on your financial health, you should go for as high a coverage as possible.
  • Term – Refers to the duration. The younger you are, the longer the term should be. This is because as you grow older, the policy will be more expensive.

How then should you decide which term and how much should be the sum assured? Some questions that you should ask before making the jump:

  • Do you have double income or are you the sole breadwinner? Does this mean that are you the only source of income?
  • If anything unfortunate is to happen to you, could your spouse help with the income of the family?
  • How old are your children and if you are no longer around, how will they survive?
  • Do you have any other long-term commitments like housing loans or education loans for your children?

Term Life Insurance providers in Malaysia

Now that you know the basics of what term life insurance entails, below are some of this product offered by major insurance companies in Malaysia. It is crucial to always discuss with your agent prior to entering into this commitment to ensure no doubts or anything that you are unsure of.

  • Gibraltar BSN i-Care is a great term life insurance to commit to with coverage of up to half a million Ringgit.
  • Hong Leong Assurance Term Cover is standard term insurance that you can enter for 10 years. It comes with a lot of flexibility that can start from as young as 16 years of age.
  • Hong Leong Assurance Level Term gives you discounts on the sum assured, the higher they are and up to 80 years old.
  • Hong Leong Assurance Active Lifestyle Protector Deluxe – Designed for those who lead active lifestyles, this is as good as it gets. The plan is made for 5 years that come with benefits such as overseas traveling and emergency assistance.
  • AIA A-Life ProtectTerm – This plan is catered for those who like flat rates. The premium remains the same throughout the term.
  • Zurich TermLife – Coverage of up to 20 years with flat-rate premium payments until you are 80.
  • Manulife ManuProtect – Provides financial help and coverage for accidental or natural death as well as permanent and total disability up to 80 years old.
  • Great Eastern SmartProtect Max – This plan comes with long term coverage. The term goes up to 20 years with a guaranteed increase in the sum assured throughout the term.
  • Allianz PowerShield is a unique plan with protection up to 80 years of age of the policyholder with a lump sum payout.
  • Allianz i-EssentialCover provides what is known as a smart term plan with a low premium and flexible coverage. Start from 18 up to 65 years of age.
  • Prudential BSN Takaful Lindungi gives you peace of mind in terms of financial security for the family in the event of death or total permanent disability.
  • Prudential PRUterm – Offered by one of the top life insurance providers, it comes with weekly income benefits if the premium holder cannot work and critical illness as well.
  • Etiqa i-DoubleSecure – This plan comes with double protection in the event of total and permanent disability or accidental death.
  • Etiqa Ezy-Secure is a plan which comes with comprehensive coverage starting at 21 and up to 80.
  • Etiqa Ezy-Life Secure lets you start as low as 17 years old all the way to 80.


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