What is term life Insurance?
Term life insurance is paid on death of the insured person. It is the cheapest and most basic form of life protection insurance. Only the listed beneficiary gets the proceeds of this policy. There is no savings component, no money back component. Only a lump sum payment death benefit. Maximum age coverage is 80 years old, subject to plan selected.
Term life insurance policy does not cover total and permanent disability. In the event the insured is disabled permanently, there is no payout.Term life insurance policy does not cover critical illnesses nor medical protection. A critical care insurance policy will have to be in place for this coverage.
Why do we need Term Life Insurance?
Term life insurance is a life insurance plan. It is meant to provide financial security and protection for your family from the loss of income from the insured’s death. Or for a company under the keyman insurance plan.
The payout is made only on the death of the insured person while the policy is in force. If the insured, survives the term of the insurance, there is no benefit received. The policy will expire with zero return. There is an option to renew before the policy expires.
What is the coverage provided by Group Term Life Insurance?
There are 3 choices of term insurance from AIA Bhd for their A-Life Protect Term Insurance plan. A level term plan that covers up to the age of 80 years old. A 5-year term plan, renewable every 5 years up to the age of 70 years old. And a yearly renewable plan for up to the age of 65 years old. The plans are renewable for the 5 year and yearly term insurance plans without further underwriting.
The minimum sum assured is RM25,000. The maximum sum assured is subject to underwriting checks terms and conditions. If a conversion to another plan is required, please get in touch with us for the best advice on how to proceed. There could be additional declarations and underwriting terms and conditions.
The insurance premium paid will depend on the insured’s health status. Underwriting will be made once for the policy even if its renewed for the same coverage to determine the premium rates. The premium payment is best paid annually, but can also be paid monthly if needed. Payments can be made with deductions from a credit card or other modes of payment.
As most people will want a return on savings or investing in an insurance policy, the better option would either be a whole life insurance plan or investment-linked life insurance plan. This gives more total life protection with a return on investment or return of savings on expiry.
Contact our AIA Life Planning Advisor to get in touch with us and start your personal coverage or choose your plan now. Get covered correctly. Be advised correctly. Call today to be advised on the best insurance protection personalized for you. Or send us the form below on your interest.