It is important at any range of your age. Put those risk to insurer instead of your own Bank Account.

Insurance allocation is LOW in first few policy years. (1st to 4/5th)

This post has been edited by transit: Nov 24 2008, 07:41 AM

Agreed on life passing part except Hospitalization portion

This post has been edited by transit: Dec 26 2008, 05:06 AM

Agreed with below Critical Illness scenario.

Average Malaysian Size and Cost For Ordinary Individual Life Policies In Force of Direct Insurer in 2007 is
Whole Life - RM48,460 Average Premium is RM1,388 (Average Cost is 29 cents/per RM1K)
Endowment - RM22,619 Average Premium is RM1,228 (Average Cost is 54 cents/Per RM1K)

It is far away from RM200K Sum Insured.

Source: From BNM Life Insurance Statistic Report 2.8
Year 2008 report is no available yet.

The estimate for Malaysian Per Capital Income is RM23,103 for 2007.
GNI - Gross Income National Income, Malaysia Population estimated is 27.2 million.

Source: From BNM Report - Table 2.17

BTW, the early report does not include Investment-Linked, just Whole-Life and Endowment indicator niah.


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On top of his or her partner forgot the PIN number for Joint Account, What about a couple dead together in one accident during traveling? What will happen to Joint A/C?

Sometime, the cash bonus accumulated MAY NOT enough to cover the future premium due to elder age our insurance charge is HIGH compare to 20 years ago. (which we are 20 years younger )

However if the policyholder passed away in between these 20 years, then his/her nominee will get the Sum Assured + Cash Bonus left under Insurance Act. Do not need to wait for the Letter of Administration to release his asset/Saving.

A person save those premium MAY NOT guarantee to have HIGHER profit along the 20 years as the investment also having risk of loss. I don't think there is a finance company can guarantee sure gain along the years. (except those Low Risk Profile such as FD, ASN/ASW Fund).

The insurance just an risk divesting tool. 10% of gross income to save for Medical/Hospitalization and life plan is really practical in Malaysia as the hospitalization bill is killing now s a day. Of course you still can make a queue in General Hospital for your surgery. It is depends on your need but not necessary to have 10% to get a plan. Of course, a person who need a life insurance only buy la, don't simple subscribe plan without fact finding on your needs.

This post has been edited by transit: Jan 2 2009, 07:16 AM