Managing one less uncertainty when life throws you off course

  • Family
  • Friday, 23 Aug 2019

Only three-and-a-half out of 10 Malaysians own life insurance, which means many are unprotected from the unpredictability of life.

Unforeseeable events happen to even the best-prepared among us, and it is for this reason that we often need help in creating as much buffer as we can to help us and our loved ones in cushioning the impact of such life events.

In many cases, an unfortunate or tragic event can leave a family anxious and financially disadvantaged when the breadwinner is incapacitated by critical illness, a total permanent disability, or passes away unexpectedly.

A common worry among many families is how dependants, especially minors, will be taken care of financially to ensure their needs, especially crucial needs such as education.

Perhaps there is a surviving spouse, and even so, families need all the help they can to rebuild their lives post-tragedy.

While legacy or contingency planning may be a topic that some may find hard to contemplate or even make preparations for, it is a necessary precaution that, when approached properly, can remove much anxiety early on.

While a family grapples with the emotional burden of unexpected life events, there is much comfort in knowing that financial security is one less uncertainty to manage. Preparedness for financial continuity, therefore, is a vital part of managing a family’s affairs.

According to last year’s statistics, it is estimated that about three-and-a-half out of 10 Malaysians own life insurance (The Star, Business, Sept 18, 2018).

Only three-and-a-half out of 10 Malaysians own life insurance, which means many are unprotected from the unpredictability of life.

According to that article, while this number is an improvement compared to 30 years ago when it was one in 10, the figure is still not encouraging as this means many Malaysians are still unprotected from the unpredictability of life.

It is a wise decision to make contingency plans that ensures the perpetuity of funds that can help the spouse or children to not only survive but also to continue with their lives.

The Prudent choice for protection

Should any unforeseen circumstances befall upon the breadwinner of the family, the solution that ensures the family persist is an insurance plan, such as Prudential Assurance Malaysia Berhad’s PRUWealth Plus plan.

In fact, that is the heart of PRUWealth Plus, which is to offer a legacy plan to those who are concerned over the welfare of their spouse and children should they face any unfortunate circumstance.

PRUWealth Plus is a life insurance plan that helps you build a legacy to leave behind for the ones you love by offering customisable solutions through flexible and affordable premium.

Leaving a memorable legacy

This insurance plan, PRUProtect Xtra solution under this plan provides a legacy solution that lets you leave behind a fair amount for your dependants in the form of an inheritance, and the ability to clear off remaining debts should tragedy suddenly strike.

As everyone has different requirements, you can start with a basic sum assured of RM500,000 that you can leave behind for your loved ones. This amount is an entry-level, but you can opt for a higher sum assured if you feel like you need a higher protection amount.

Under the basic plan, the death benefit is payable up to 3 times of the Basic Sum Assured if death is due to an accident. For a plan with Basic Sum Assured RM500k, the amount of benefit payable can come up to RM2mil.

This solution comes with a Level SA rider* which provides additional death coverage for the first 20 years at a more affordable premium.

The death benefit of RM500k payable from this rider is an additional amount on top of the basic plan that will be included in the total death benefit payout. The additional amount helps clear remaining short-term debts and free dependants from the burden of liabilities.

*This rider pays the rider sum assured in one lump sum upon the death of the Life Assured before the expiry of the rider. (Attachable to PRUWealth Plus)

The gift of protection 

Parents can also add PRUBest Gift with PRUWealth Plus as the basic plan for their children, gifting them the important insurance coverage as protection against the vagaries of an uncertain future as early as 30 days after they are born.

PRUBest Gift will provide additional protection against critical illnesses, and a waiver from paying premiums if the paying parent is total and permanently disabled, diagnosed with a covered critical illness or dies.

PRUBest Gift allows you to create comprehensive protection for your loved ones as early as 30 days after they’re born.

When your child grows up and becomes the policy owner, he could either keep the policy and continue the protection with high critical illness coverage or can also reap the harvest from the accumulated cash value for his use.

Or he can opt to hold on to the policy while nominating his beneficiary to receive the money, should anything unfortunate happen to him.

To know more about how to build a legacy for your dependants, click here or speak to any Prudential agent in person.

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