Life Insurance: Wealth Accumulation and Protection

You work hard for your money in order to improve your standard of living, to provide the best for your loved ones, to pursue your dreams or financial goals, and more. In pursuit of your goals, have you ever wondered what are the critical factors that may deter you from achieving your goals?

The critical factors can be:

The Unexpected Events
We never like to think that the worst will happen but careful planning is the surest way of seeing you and your loved ones through loss of income or unexpected costs. By putting an insurance plan in place, you and your loved ones will be protected from financial uncertainties should the unfortunate happen. If you have already done so, is the coverage sufficient to sustain the daily expenses without compromising the comfort and current lifestyle of your family? Is there a need to review your current insurance coverage?

If you have yet to draw up a protection plan, let’s plan for it NOW! It is better late than NEVER!

The Impact of Inflation
As you may already know, RM1 worth of goods today will definitely cost you more twenty years later. This is due to the effects of inflation that affects your purchasing power. For example: with an inflation rate of 4% p.a., your savings of RM100,000 today will only allow you to make purchases worth RM45,639 twenty years later.

To surpass the rate of inflation, you could place your savings into a financial instrument that provides you with returns that outpace inflation. One way is to consider an investment-linked plan (ILP) as an alternative instrument which provides both insurance protection and investment at the same time. ILPs offer the flexibility on protection and investment needs based on your affordability. You could also balance your needs for protection and investment through the changing times of your life cycle.

Your Attitude Towards Money
Save before you spend! Put aside at least 10% of your monthly gross salary for the purpose of saving for your financial goals. A consistent and discipline approach towards savings is important to ensure that you are on your path towards achieving your financial goals.

By investing regularly over a medium to long term period, you can remove the need to forecast the market by making buying decisions systematically and achieve growth in your investments at lower cost through Dollar Cost Averaging.

Find out more on products and services available for Wealth Accumulation and Protection.

Investment Linked:

• Regular Premium
  • AIA Assurance Account (AAA)

    AIA Assurance Account

    
    AIA Assurance Account (AAA) is a regular premium investment-linked plan that can be customized into any financial program you desire, be it retirement, child education, emergency funds or a legacy for your loved ones.

     

    Flexibility and control… AAA gives you control and flexibility over your protection and investment needs. As your needs change through time, you have the choice to increase or decrease your protection level, to top up your investment or to switch between funds, the list is just endless.

     

    Unparalleled financial expertise… AAA gives you the opportunity to tap into the well-diversified AIA Investment Funds. AIA Investment Funds are structured, monitored and managed by a professional team of fund managers in Malaysia . This same team also manages the assets of AIA and has achieved an outstanding track record of financial performance.

     

    Guaranteed protection… AIA will ensure continuous protection for the first two years should your account value be insufficient to pay for your cost of insurance charges, as long as you continue to pay the premiums when due, with no prior withdrawals. This is subject to the Terms and Conditions of the policy.

     

    Free disability benefit (for standard life with issue age up to 55 only)… assure yourself of disability income. In the unfortunate event of total and permanent disability, you will receive disability payment in one lump sum or 10% of the sum assured in the first two years, followed by the remaining 80% in the third year, depending on the nature of the disability.

     

    Additional coverage available … to cater for your needs:

    • Critical Illness Coverage
    • Hospitalisation & Surgical Benefit
    • Accident Benefit
    • Waiver of Premium
    • Comprehensive Female Coverage
    • Disability Income

     

    Eligibility
    Anyone from four (4) weeks up to sixty five (65) years of age and who is in good health is eligible.

     

Individual Life:

• Inflation Protector Plus
• Whole Life Plus Non Par

 Inflation Protector Plus

Financial freedom is the milestone that each of us plan to reach. We strive to provide for our family while attempting to set aside a decent sum for our golden nest.

Each stage of our lives - adulthood, marriage and childbirth comes with added financial commitments and responsibilities. As a result, financial planning for sufficient protection requires periodical review and frequently, additional premium outlay. If you factor in the inevitable escalating cost of living, the task becomes even more challenging.

Although the virtue of periodical financial planning review is universally recognized, we frequently lack the discipline as well as the time to constantly upgrade our financial plan. Our indecision leaves us open to the devastating effect of a catastrophe which may wipe out our entire net worth as well as cripple our ability to continue to generate income, rendering our loved ones financially helpless.

Wouldn’t it be wonderful to have a trusted companion that will keep step with you as you progress through each stage of your life? Introducing Inflation Protector Plus. It is designed with the unique feature of automatic upgrading of sum assured during your most productive years, providing you with increasing protection as you take on added responsibilities and commitments.

Another unique feature is the premium outlay. It is guaranteed and remains level throughout despite the increasing sum assured. To add further value to your policy, your premium paying duration is guaranteed for 20 years or up to age 55, whichever is later. Such guaranteed features make budgeting for your financial plan so much more predictable and manageable. The wonders of Inflation Protector Plus do not stop there, the increasing sum assured comes without any further health review requirement from AIA; another added assurance from a trusted companion.

The percentage of increase to your initial sum assured has been structured to ensure optimum protection during your most productive years:

Coverage for Inflation Protector Plus is structured to encompass three elements: Critical Illness, Disability (this benefit is offered to standard lives with issue age up to 55 only) and Death. The plan has been carefully designed to immediately pay out on the first occurrence of either one.

Both the Critical Illness and Disability coverage act as a lifesaver, ensuring that you have the financial means to recover from such a debilitating experience. However should the unexpected happens first, it provides a legacy to your loved ones.

Additional coverage available

• Hospitalization & Surgical Benefit
• Comprehensive Female Coverage
• Accident Benefit
• Disability Income

Eligibility
Anyone from four (4) weeks up to sixty (60) years of age and who is in good health is eligible.

Tax Relief
80% of the annual premiums paid for this plan may qualify you for a personal tax relief of up to RM6,000 for annual life insurance premium and EPF, whilst 20% of the annual premiums paid may qualify for the RM3,000 medical tax relief; subject to the final decision by the Inland Revenue Board.

Plan Type
Inflation Protector Plus is an endowment policy to age 85 participating with cash dividends and surrender/terminal dividends.

Whole Life Plus Non-Par

Financial protection… an inheritance for your loved ones should the unexpected happens to you.

Free disability benefit (for standard life with issue age up to 55 only)… assure yourself of disability income. Upon total and permanent disability, you will receive disability payment in one lump sum or 10% of the sum assured in the first two years, followed by the remaining 80% in the third year, depending on the nature of the disability.

Additional coverage available

• Critical Illness Coverage
• Hospitalization & Surgical Benefit
• Accident Benefit
• Disability Income

Eligibility
Anyone from four (4) weeks up to sixty five (65) years of age and who is in good health is eligible.

Tax Relief
This policy may qualify you for a personal tax relief of up to RM6,000 for annual life insurance premium and EPF, subject to the final decision of the Inland Revenue Board.

Plan Type
Whole Life Non-par is a whole life non-participating policy to age hundred (100).

Important: This is purely a product summary and shall under no circumstances be used or deemed as an offer to sell nor shall it be taken as a form of professional advice of any manner. Please contact us at 03-6140 3046 for more information.