{"id":8085,"date":"2014-01-03T14:36:08","date_gmt":"2014-01-03T06:36:08","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=8085"},"modified":"2018-01-24T16:29:18","modified_gmt":"2018-01-24T08:29:18","slug":"life-insurance","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/life-insurance","title":{"rendered":"What Comes After Death: Life Insurance Can Ensure Financial Continuity"},"content":{"rendered":"

\"bigstock-man-life-insurance-16589432-604x272\"<\/a>So, you\u2019ve passed on, life and its adventures have run its course and now you\u2019re lounging in the clouds sipping a glass of cold lemon tea. Life is good \u2013 or rather, the afterlife. But, what about your loved ones? Are they bogged down by financial burden that you left behind or do they have the privilege of a comfortable life that you managed to provide them with?<\/p>\n

If your answer is financial burden, then it\u2019s time to realise the importance of a life insurance policy. The point to stress here isn\u2019t the importance of having one because it is, and you should have one, but rather the importance of having adequate coverage on your life insurance policy.<\/p>\n

<\/span>How much is \u201cadequate\u201d?
\n<\/b><\/span><\/h2>\n

To say a coverage of RM1 million is adequate may be jumping the gun and to some, it may mean being over-insured or under-insured.<\/p>\n

Keeping in mind that what constitutes as adequate will require the continuous examination of the circumstances that affect your life and the life of your dependents, a consideration of the things below might reveal that perhaps RM1 million is what is considered adequate for most.<\/p>\n

Mortgage
\n<\/b><\/p>\n

The saying \u201chome sweet home\u201d may not be true for your dependents if they are left shouldering monthly repayments after your passing. To prevent this from happening, you could opt for either a Mortgage Reducing Term Assurance (MRTA) or a Mortgage Level Term Assurance (MLTA)<\/a> policy. However, maintaining a life insurance policy with enough coverage to pay-off your outstanding home loan amount can also be a cheaper and more efficient option.<\/p>\n

Assuming you have a home loan of RM300,000 at an interest rate of 4.25% per annum with 15 years remaining, regardless of which policy you decide on, you will need to have a coverage of at least RM265,648 to ensure your dependents continue to have a roof over their heads.<\/p>\n

Coverage required: RM265,648<\/b><\/p><\/blockquote>\n

Childcare and education expenses
\n<\/b><\/p>\n

Caring for your child is a full-time job that doesn\u2019t pay \u2013 at least not in terms of money, but if you are a parent, you will undoubtedly want to continue to provide for the upbringing and education of your child. That translates to the cost of childcare services and\/or university fees.<\/p>\n

When asked what childcare costs are by The Malaysian Insider<\/i>, several childcare centres and parents stated that childcare costs range from RM300 to RM1,300 a month per child. Assuming an average cost per month of RM800 for three years, your life coverage would need an additional coverage of RM28,800.<\/p>\n

According to our infographic on tertiary education<\/a>, the cost to put one child through a 3-year degree programme in University Malaya (UM) will cost approximately RM99,714 (cost at the time of writing). This figure is expected to increase by 1.7 times based on an inflation rate of 3% or more given the recent price hikes.<\/p>\n

Coverage required: RM128,514 per child<\/b><\/p><\/blockquote>\n

Income replacement<\/b><\/p>\n

Having enough coverage to pay off your debts and put your child through school aside, your insurance coverage should ideally be able to sustain a comfortable standard of living for your dependents.<\/p>\n

The general rule of thumb according to Life Insurance Association of Malaysia (LIAM) is to insure a sum equivalent to 10 times your annual salary.<\/p>\n

Assuming you have an annual income of RM54,000 (RM4,500 per month), an ideal sum insured would be RM540,000. However, a closer and more detailed examination of your annual household spending would paint a clearer picture as to the actual amount your dependents would need after your passing.<\/p>\n

Coverage required: RM540,000<\/b><\/p><\/blockquote>\n

Looking at the numbers above, an average middle-income person with a child and a mortgage to pay off would need to be insured for a minimum sum of RM934,162.<\/p>\n

This however is by no means a \u2018one-size-fit-all\u2019 calculation and there are many other considerations \u2013 which vary from person to person, to be taken into account. Therefore, it would appear that a coverage of RM1 million would indeed be a closer estimation of how much a person should be covered for.<\/p>\n

 <\/p>\n

<\/span>Don\u2019t think medical insurance is necessary if you already have life insurance? Perhaps you should find out why you should get one<\/a> now<\/b><\/b>.<\/b><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

Will your loved ones be bogged down by financial burden or do they have the privilege of a comfortable life after you\u2019ve passed on? If your answer is financial burden, then it\u2019s time to realise the importance of a life insurance policy. It is no doubt important to have a life insurance coverage, but is your coverage adequate? <\/p>\n","protected":false},"author":1,"featured_media":8087,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133,235],"tags":[219],"class_list":["post-8085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-life-insurance","tag-bi"],"acf":[],"yoast_head":"\nLife insurance can ensure financial continuity | iMoney<\/title>\n<meta name=\"description\" content=\"Having a life insurance policy is really important, but what's even more important is to have adequate coverage on your life insurance policy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.imoney.my\/articles\/life-insurance\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Life insurance can ensure financial continuity | iMoney\" \/>\n<meta property=\"og:description\" content=\"Having a life insurance policy is really important, but what's even more important is to have adequate coverage on your life insurance policy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.imoney.my\/articles\/life-insurance\" \/>\n<meta property=\"og:site_name\" content=\"iMoney Malaysia\" \/>\n<meta property=\"article:published_time\" content=\"2014-01-03T06:36:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-01-24T08:29:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"419\" \/>\n\t<meta property=\"og:image:height\" content=\"272\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"iMoney Editorial\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"iMoney Editorial\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.imoney.my\/articles\/life-insurance\",\"url\":\"https:\/\/www.imoney.my\/articles\/life-insurance\",\"name\":\"Life insurance can ensure financial continuity | iMoney\",\"isPartOf\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/life-insurance#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/life-insurance#primaryimage\"},\"thumbnailUrl\":\"\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg\",\"datePublished\":\"2014-01-03T06:36:08+00:00\",\"dateModified\":\"2018-01-24T08:29:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb\"},\"description\":\"Having a life insurance policy is really important, but what's even more important is to have adequate coverage on your life insurance policy.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.imoney.my\/articles\/life-insurance#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.imoney.my\/articles\/life-insurance\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.imoney.my\/articles\/life-insurance#primaryimage\",\"url\":\"\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg\",\"contentUrl\":\"\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg\",\"width\":419,\"height\":272},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.imoney.my\/articles\/life-insurance#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.imoney.my\/articles\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Insurance\",\"item\":\"https:\/\/www.imoney.my\/articles\/category\/insurance\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Life Insurance\",\"item\":\"https:\/\/www.imoney.my\/articles\/category\/insurance\/life-insurance\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"What Comes After Death: Life Insurance Can Ensure Financial Continuity\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.imoney.my\/articles\/#website\",\"url\":\"https:\/\/www.imoney.my\/articles\/\",\"name\":\"iMoney Malaysia\",\"description\":\"Everything you need to know about improving your personal finances.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.imoney.my\/articles\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb\",\"name\":\"iMoney Editorial\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g\",\"caption\":\"iMoney Editorial\"},\"description\":\"iMoney Editorial Team is composed of 4 writers with wide-ranging interests and areas of expertise. Their primary responsibility is to write financial-related articles to share and educate Malaysians on how to save, make and grow their money.\",\"sameAs\":[\"http:\/\/www.imoney.my\"],\"url\":\"https:\/\/www.imoney.my\/articles\/author\/chinglee\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Life insurance can ensure financial continuity | iMoney","description":"Having a life insurance policy is really important, but what's even more important is to have adequate coverage on your life insurance policy.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.imoney.my\/articles\/life-insurance","og_locale":"en_US","og_type":"article","og_title":"Life insurance can ensure financial continuity | iMoney","og_description":"Having a life insurance policy is really important, but what's even more important is to have adequate coverage on your life insurance policy.","og_url":"https:\/\/www.imoney.my\/articles\/life-insurance","og_site_name":"iMoney Malaysia","article_published_time":"2014-01-03T06:36:08+00:00","article_modified_time":"2018-01-24T08:29:18+00:00","og_image":[{"width":419,"height":272,"url":"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg","type":"image\/jpeg"}],"author":"iMoney Editorial","twitter_card":"summary_large_image","twitter_misc":{"Written by":"iMoney Editorial","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.imoney.my\/articles\/life-insurance","url":"https:\/\/www.imoney.my\/articles\/life-insurance","name":"Life insurance can ensure financial continuity | iMoney","isPartOf":{"@id":"https:\/\/www.imoney.my\/articles\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.imoney.my\/articles\/life-insurance#primaryimage"},"image":{"@id":"https:\/\/www.imoney.my\/articles\/life-insurance#primaryimage"},"thumbnailUrl":"\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg","datePublished":"2014-01-03T06:36:08+00:00","dateModified":"2018-01-24T08:29:18+00:00","author":{"@id":"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb"},"description":"Having a life insurance policy is really important, but what's even more important is to have adequate coverage on your life insurance policy.","breadcrumb":{"@id":"https:\/\/www.imoney.my\/articles\/life-insurance#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.imoney.my\/articles\/life-insurance"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.imoney.my\/articles\/life-insurance#primaryimage","url":"\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg","contentUrl":"\/articles\/wp-content\/uploads\/2014\/01\/bigstock-man-life-insurance-16589432-604x272.jpg","width":419,"height":272},{"@type":"BreadcrumbList","@id":"https:\/\/www.imoney.my\/articles\/life-insurance#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.imoney.my\/articles\/"},{"@type":"ListItem","position":2,"name":"Insurance","item":"https:\/\/www.imoney.my\/articles\/category\/insurance"},{"@type":"ListItem","position":3,"name":"Life Insurance","item":"https:\/\/www.imoney.my\/articles\/category\/insurance\/life-insurance"},{"@type":"ListItem","position":4,"name":"What Comes After Death: Life Insurance Can Ensure Financial Continuity"}]},{"@type":"WebSite","@id":"https:\/\/www.imoney.my\/articles\/#website","url":"https:\/\/www.imoney.my\/articles\/","name":"iMoney Malaysia","description":"Everything you need to know about improving your personal finances.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.imoney.my\/articles\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/2dc429bac9840e75ad08ab242c57dcbb","name":"iMoney Editorial","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.imoney.my\/articles\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4268d61be86ba47b656e314b503a5c2f?s=96&d=mm&r=g","caption":"iMoney Editorial"},"description":"iMoney Editorial Team is composed of 4 writers with wide-ranging interests and areas of expertise. Their primary responsibility is to write financial-related articles to share and educate Malaysians on how to save, make and grow their money.","sameAs":["http:\/\/www.imoney.my"],"url":"https:\/\/www.imoney.my\/articles\/author\/chinglee"}]}},"_links":{"self":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts\/8085"}],"collection":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/comments?post=8085"}],"version-history":[{"count":8,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts\/8085\/revisions"}],"predecessor-version":[{"id":62836,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/posts\/8085\/revisions\/62836"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/media\/8087"}],"wp:attachment":[{"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/media?parent=8085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/categories?post=8085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.imoney.my\/articles\/wp-json\/wp\/v2\/tags?post=8085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}