In general, the younger the policyholder, the cheaper the premium on a term insurance policy will be.
The Younger The Better Our advice for our customers is to get term insurance as their first life insurance policy. See our other article on how to Pay Less for more? Absolutely! By purchasing term insurance at a younger age, our customers can enjoy lower premiums and enjoy higher benefits. The premium of a term life policy can be up to 60% lower than a whole life policy for the same sum assured amount. Insurers in Malaysia, including our partners like AIA, AXA, HL Assurance, MCIS and Zurich provide some of the most popular term life insurance plans in the country. The other benefit of purchasing insurance coverage at a younger age is so that cover can be secured before the risk of developing any pre-existing condition sets in. However, this does not mean that you should only buy term insurance in your 20s. We often meet customers who buy a second term policy to increase their coverage in their 30s. This is in part due to the higher income levels they have (and hence larger policies are more affordable) and also because many of our customers would have started to own their home and have children at this age. Are you considering getting higher coverage at 30+? Often, the coverage of your first term policy will not be enough to serve you through the next stage of your life – your thirties! It could be difficult to foresee the amount of insurance protection needed for married life and the costs of starting your own family when you are still in your twenties. But your financial responsibilities will increase in this stage of your life. If you are the one of the breadwinners of the household, you might wish to be able to provide for your dependents until your youngest child completes university. A suitable policy term would therefore be about 20-25 years. With this duration of cover, you can be assured of protection of your dependents until your youngest child achieves financial independence. The coverage amount to have should ideally be enough to pay for the college tuition fees, plus any ongoing living expenses your dependents are expected to incur. If you have an outstanding mortgage, it is useful to ensure that your insurance coverage is also able to cover for your mortgage in addition to any education and living expenses you need to provide for. We would say that term insurance is the best life insurance product for people who are in the life stage of family-building. This is the time where one has the highest family expenses and correspondingly, have the greatest need for insurance protection. The lower premiums for term policies will allow you to obtain a high level of coverage so that you can focus on the growth of your family. The clock is ticking but we have good news for you If you haven’t purchased any life insurance in your 20s or 30s. It isn’t too late yet! If you need the coverage, remember that it is considered a good time to buy term insurance between the ages of 30 and 40. This is when you would are likely to have a good understanding of your financial responsibilities, and are, at the same time, in good health to be insured. Did you know that a 35 year old non-smoker needs as little as RM49 a month to secure a coverage of RM200,000! What are you waiting for? Get your quote now! You can compare in a table the features of the term policies from various insurers right away. We have highlighted the strength of each of the policy for your easy reference!