Insurance for Retirement

Buying an insurance policy for retirement in Malaysia is usually to secure your finances after you've reached the golden age and stopped working - at least, this is how insurance companies see it.

How does it work?

Retirement-centered plans are a form of life insurance and can come as a term plan or a rider. The term life plans usually comes with 3 options or more. The longer your term's years are, the higher the amount of income you will get from the plan.

Most of the plan available in Malaysia are endowment plans, either with monthly or yearly income. However, the promised income will only start coming in after a year or so, after you've started the plan. There is a possibility of extra income in the form of dividends. This extra income is not guaranteed as it depends on the insurance company's performance.

Some of the plans may have you treating your insurance like a bank, asking you to deposit money with them as a form of savings. Certain plans may also allow you to withdraw from your total assured sum.

When can I apply?

While this insurance might make it seem like it's better applied for when you're past your prime or actually retired, the age limit to be insured for this policy can start as early as 14 days old depending on company and plan, but more commonly starts at 18 years or older and ends around your 50's, which is lower than the minimum retirement age of 60 in Malaysia.

Is there anything else I should know?

Most of these retirement plans come bundled together with Total and Permanent Disability (TPD) benefits, death benefits, medical or critical illness coverage. They may or may not also come with a Funeral Expense Benefit.

Any form of coverage that you get from your retirement plan in Malaysia is dependent on the total sum you have, so if any amount is deducted from it either by withdrawal or claims, your coverage will decrease.

Above Articles Adopted from Insurance-Finder.my.

Contact information:

Name: Tony Ngu

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Email: tonyngu2628@gmail.com

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