Tag Archives: Sum Assured

The Reason Why I Need Insurance….

My Client’s confession……

Here I list down five main reasons why I bought an insurance and why everybody should have one too. P/S: I am not trying to sell anything here, just stressing out something important that everyone should know.

  1. For My Own Protection – When I was about to resign from my job, I was thinking, what if I suddenly had a serious illness or involved in accident and not able to work and earn any income? what will happen to me? Yes, I still have my family, but would it be fair to burden them? Would I want to burden them? I am not married, so I cannot be asking help from my husband. Will I have enough savings for the treatment and those health related matter? Will I trouble my parents and siblings for that? Sometimes, these thought made me having sleepless nights. With an insurance policy, at least I am covered for my illnesses with adequate financial support for any expensive treatment.
  2. For My Savings – I am a business minded person which means that I am very calculative when it comes to my money but there are times that I spend money just to make myself and people who surrounds me happy. Yes, I do have my own savings in the bank and in mutual funds but with insurance, It’s another medium for me to force myself into saving a few hundred bucks monthly by contributing to my insurance premium and one thing for sure, by receiving my yearly account statement, I know where my money goes too.
  3. For My Investment – Partial of my premium will be invested into selected funds with a handsome return that you can’t resist. Absolutely a great way to have extra money and it is safer too as insurance minimize the risk factor on your investment.
  4. For My Retirement – With the hope that everything goes well without me making any major claims or withdrawals, I can retire early and receive my investments and live in Paris with my cats.
  5. For My Future – When I learned that your premium increases together with your age, I realize that I really need to have an insurance coverage as early as possible. I do not want to wait until I have my own family or other big financial commitments in life as by then, the premium to start an enrollment for my insurance will be very high and insurance company have the rights to rejects or excludes applications with health problems. Among all of the above, the main reason why I decide to take up an insurance coverage is still based on the first reason which is PROTECTION. In case of any accidents or serious illnesses, there will be a strong financial support for myself and my family.


PRUlink million

Introducing the New Pru Link Million….!

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Investment Linked Plan – Everyone is a Millionaire.

An exclusive regular premium investment-linked insurance plan that provides you with a high coverage of RM500,000 and above, and safeguards what is important to you and your loved ones.

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How to determine your Sum Assured?

sum assured - How to determine your Sum Assured?

What is Sum Assured?

In a life assurance policy, the sum assured is the minimum amount payable to the assured or his/her dependents on the death of the life assured.

How to determine your Sum Assured if death happen to you?

  • Father or Single Mother

As husband and father, every month salary are mean for family expenses. House and car installment, bills, wife and kids expenses.

Basic calculation, Sum Assured = Salary for 5 years.

Salary = RM3500

Minimum Sum Assured should be is = RM3500 x 12 x 5 = RM210,000

Why 5 years?

If death occurred, your must able to provide your family with same lifestyle  as you are still alive. Your family must able to pay for installments and all other expenses as normal. 5 years are sufficient for your family to re-plan life expenses according to new lifestyle.

  • Wife

Normally for husband and wife, they split the monthly expenses .For example,  Husband pay for the house and cars. Wife pay for the bills and or other installments.

5 years duration still applied but wife’s responsibility in term of money is less compare to husband. Minimum Sum Assured is taken by the amount contributed to the family expesnses.

Salary RM2500

50% of the salary goes to Family’s expenses = RM1250

Minimum Sum Assured = 1250 x 12 x 5 = RM75,000

When a husband loss his wife, his salary is not enough to support the family. Sum Assured helps the husband from falling into debt crisis.

  • Single

At a glance, single men or women have no responsibility to others.  But the reality is, they have responsibility.

They ease their parents expenses by giving them Rm500 per months.Or, a brother support his little sisters in university by providing small allowance RM200 per months.

Your parents and little sisters dependent on you every months . You don’t want them to be in trouble when you are dead .  Hence, allocate sufficient Sum Assured for them.