It’s never too early nor too late when it comes to insurance-planning, especially since it concerns both your immediate and long-term future. When talking about life insurance, there’s a lot of things you need to consider before committing to a policy. What tenure should you choose? Is term life a better option than whole life insurance? What is term life insurance, exactly?

If you’re still not sure on which term life insurance to get, we’re here to help you decide. Here’s a complete guide to everything you need to know about term life insurance.

What is Term Life Insurance?

Term life insurance is a very common form of life insurance and provides a lump sum payout if you die in the course of the policy duration or if you suffer from a total permanent disability (TPD). It is priced affordably so that anyone can apply for it at any life stage and with this policy in hand, you can stay assured that you and your family will be protected in the occasion that something unfortunate happens to you.

As a term life insurance policyholder, you will make payments called premiums to an insurance provider. As long as the policy is active, you will receive a fixed amount of lump sum coverage as the key benefit.

This benefit will be paid out to the beneficiaries of the policy in the event of death or TPD.

How is Term Life Different Compared to Whole Life Insurance?

In a nutshell, whole life insurance can be defined as a permanent life insurance product, that offers lifetime coverage (maximum coverage age of 80 – 100 years old, depending on the policy provider), meaning the policy is guaranteed for as long as you can pay the premiums.

Meanwhile, term life insurance only covers you for a set timeframe – this could vary from a 5, 10, 20, or even 30-year period depending on the term that you choose. If you die or suffer from TPD during this period, your loved ones will receive the benefit, but if you do not, you and your beneficiaries will not receive anything. You can choose to discontinue the plan after your policy term is up or renew it up until a certain age.

For a clearer understanding of the differences between term life insurance and whole life insurance, you can watch the video above, and refer to our cheat sheet below:

Why Should I Get Term Life Insurance?

No one wants to think about their own death, let alone plan for it. However, if you have a Term Life insurance policy, should the worst happen, your family can be provided for financially. Here are a few scenarios how this can be relevant to you:

If something unexpected happens to me…

• I want my child to further their studies without worrying about the cost.
• I want my wife/husband to stay in the home that we have lived in without letting our mortgage burden him/her.
• I want my parents to be cared for just like they have cared for me.
• My car loan should be the least of my family members’ concerns.
• I hope that my family can live comfortably without worrying about the future.
• I don’t want to burden my parents with my debt if something happens to me.

By buying a term insurance plan on your own life with a sufficient sum assured, you can ensure the financial stability of your dependents even when you are not around anymore. This assurance provides every individual with peace of mind free from financial worries.

How Do I Apply For Term Life Insurance?

Traditionally, many people purchase life insurance by meeting up with insurance agents face-to-face to have their potential policies explained to them. These days, it has become increasingly common for Malaysians to do their own research and purchase their insurance policies wholly through digital channels. These policies also do not require medical check-ups prior to approval, and the approval process itself can be instant.

Fi Life is one example of a fully online platform that allows you to buy term life insurance, complete with all the details and information you need to make the right decision readily available on their website. If you are interested in checking out Fi Life, don’t forget to make use of our exclusive 10% promo for RinggitPlus readers below.

We will be covering more on this topic in the coming weeks, so if you have any queries on this matter, drop us a comment and we’ll do our best to cover them in our upcoming articles!

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• Fi Life
• Life Insurance
• Longform
• Term Life Insurance