Why do you need life insurance?
To determine if you need life insurance, you should consider the worst case scenario in the event of an accident. If you die the next day, will your loved one be financially protected?
If your family is going through financial hardship after your departure, then obviously you need life insurance. Benefits after death will replace your income and help your family deal with other financial needs.
Are you sure your family will be able to pay for your last expenses such as medical expenses, funeral expenses, taxes, debt and living expenses? Are they able to afford regular financing such as rent, housing loans, food, clothing, transportation and health financing, at least in the early stages? What about long-term financial goals? With your departure, will your spouse have enough money for your child’s higher education or for retirement purposes? Do you also want to leave something for your child or grandchild?
Life insurance policies in Malaysia are best suited for those who have family members who depend on them financially, so they are not mandatory for children or retirees who do not have a source of income or family members who depend on them financially.
Life insurance coverage will ensure that your loved one continues to be financially funded in case you lose or lose the ability to find a source of income. Your family will be assured that their quality of life will not be affected by full insurance coverage.
In addition, you are entitled to claim a tax relief of up to RM6,000 a year for your contribution to life insurance and the Employees Provident Fund (EPF).
For more information about Insurance Planning Malaysia, please visit https://www.vka.com.my/
