Online Term Life insurance is the best and cheapest alternative to expensive comprehensive life insurance. And to help, we have compiled this list of best Term Life Insurance and Family Takaful for RM400,000 in 2021 for you.
Before diving right into the list, we briefly explain what term life insurance is and how it is different from comprehensive life insurance. Comprehensive life insurance consists typically of (1) protection, (2) savings and additional options called (3) “riders” such as medical card. We briefly explain each part below.
(1) Protection Part
The protection part of life insurance pays a large sum of money when the person dies through a natural cause or accident. Death protection is the main reason many Malaysians buy life insurance. The government supports you to protect your family from financial loss with a tax deduction on life insurance.
(2) Savings Part
The savings part of life insurance helps the owner of the insurance to save money for the future. The money is paid out at the end of the insurance period in one go. Most often, this money is used for retirement. Another use of the saved money is children’s education or housing loans. Depending on the purpose of the savings, insurance companies give the insurance a different name. The savings part of insurance is one of the main reason why life insurance can be costly.
(3) “Riders” Part
The last part are “riders” that offer additional protection against unforeseen events. Most often the riders are medical card or critical illness. Riders can add significantly to the price of insurance, so you want to be careful, when you add them. However, they are optional, and you can always choose not to buy them.
Term Life Insurance does not have savings
As mentioned above the “Savings” part in regular insurance can be the most expensive part of life insurance. Term Life insurance does not have a saving’s part. You only pay for the protection against death and accident. Not having a savings part, makes Term Life insurance very cheap and affordable, because insurance companies will charge you a fee for managing your money. This fee is called the management fee and can be as high as 6%.
Term Life insurance is best when you want to protect your family from financial chaos when the main money earner in the family dies. We do not wish for such an unfortunate event, but it is crucial to plan for it because even though unlikely, it can happen.
How to compare prices between insurance companies?
If you want to compare prices between insurance companies, then you need to ensure that the personal details are the same, because the cost of insurance will depend on the specific details of the person who want to be insured. The prices below will give you an indication of what the insurance can cost. To get the exact price for you, click on the link to get a free price quote from the insurance company. Here are the details we used to calculate the cost of our sample customer.
- Age: 40 years old
- Gender: Male
- Height: 175cm
- Weight: 65kg
- Smoker: Yes
Most likely you will not fit that specific profile so that you need to calculate the price for yourself. However, you can use the rates below as an indication of how expensive a company is.