Term insurance has been hitting the headlines lately. A client, Mr. XxX, 34, called his agent to check about term policy. He plans to get 20-years term insurance of RM 500,000.00 to protect against Premature Death or Total Permanent Disability (TPD). He started thinking hard about the subject earlier this year, when his second child was born. Why suddenly he need term insurance? Because he thought, ‘what would happen if he become permanently disabled and die suddenly?’ He said. He took himself out of the family, and said what he saw was not very rosy. He saw his wife and children suffering emotionally and financially.
Term life insurance or term assurance is life insurance which provides protection against Premature or Total Death and Total Permanent Disability (TPD) at a fixed rate of payments for a limited period of time. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive (cheapest) way to purchase a substantial death benefit on a coverage amount basis. If the insured survives the term, he will not receive any claim pay out cash or cash values.
Unlike life and health insurance where the product features can be really complex and confusing, term plan is much simpler to comprehend. The comparison is also rather straightforward. Therefore, premium rate is a key consideration when selecting a term plan.