Quick Guide to Buying Life/Takaful Insurance in Malaysia – Infographic

Getting ready to buy your first life Insurance or Family Takaful and don’t know how and where to start? Use this guide as a reference to help you to make a better and informed choice, for life insurance or family takaful protection that fits to your needs.

Buying Life Insurance/Family Takaful is one of the fundamentals to a sound financial and health investment. To help you to make a decision, here is a “Quick Guide to Buying Life Insurance” with 9 useful steps before and during the process of buying your life insurance or family takaful.

Feel free to embed the Infographics onto your webpage.

Summary of steps and questions when buying life insurance

1. How and where do I buy life insurance?
2. How much cover do I need for how long?
3. Shop around
4. Why do I need to complete Customer Fact Find Form?
5. Read Product Disclosure Sheet and sales illustration
6. Complete Proposal Form accurately and completely
7. Read your insurance policy carefully
8. Take advantage of the 15-days Free Look Period
9. Make your nomination – It is the reason why you bought the policy.

• Agents of insurers/takaful operators
• Financial adviser
• Insurer/takaful operator’s online channel

• Depends on your financial goals, insurance needs & what you can afford to pay
• Use online calculator to estimate coverage needed, available at: https://ism.net.my/protection-calculator

• Compare as many insurance plans as possible – it is always wise to shop around
• Choose an affordable plan that best suits your financial needs & risk profile

For the agent to assess your financial goals, protection needs, affordability & recommend a suitable product

• Step 1:
  Identify your needs (i.e. protection, retirement, children’s education & savings plans) & risk tolerance
• Step 2:
  Conduct financial needs analysis i.e. protection needs & financial situation
• Step 3:
  Recommend a suitable product & reasons for recommendation

Read these documents to understand scope of cover

• Pay close attention to policy benefits (i.e. guaranteed or non-guaranteed), risk exclusions & premium (i.e. fixed or increasing)
• Ask questions if the policy coverage and terms & conditions are unclear to you
• Compare both premium payable & level of coverage provided

• Never sign a blank or an incomplete proposal form
• Make sure all information disclosed in proposal form are accurate & complete
• Double-check to ensure all answers are accurate before signing

• Understand the policy coverage, risk exclusions and terms & conditions of the policy
• Ask your agent or insurer/takaful operator about any terms & conditions that are unclear

Read and review the policy.

• Make an appointment with your agent to go over the policy

If the policy does not suit your needs…

• You must return the policy to insurer/takaful operator within the 15 days
• Premium will be refunded to you less medical expenses incurred

• Complete nomination form to expedite payment in the event of death
• Inform your nominees of the policy

Have a question? Leave a comment below !