Who needs life insurance?
Anyone whose income other people rely on. That usually means:
- parents with young children,
- couples paying a housing loan together,
- adult children supporting their parents,
- business owners whose family or partners depend on the business.
If nobody depends on your income yet, a medical card is usually the first priority, and life cover can come later.
How much cover is enough?
A simple way to start is to add up what your family would need if your income stopped:
- Debts: housing loan, car loan, personal loans.
- Living costs: monthly household expenses multiplied by the number of years your family needs support.
- Future goals: your children’s education, and support for your parents.
- Minus what you already have: savings, EPF, existing insurance.
The gap is roughly how much life cover to consider. Lulu does this calculation with you using your real numbers, then shows options that fit your budget.
Types of life insurance explained: term, whole life or investment-linked
| Term life | Whole life | Investment-linked | |
|---|---|---|---|
| Covers | A fixed period, for example 20 years or to age 65 | For life | Flexible period, with protection and investment combined |
| Premium | Lowest for the same cover | Higher, usually fixed | Varies. Insurance charges rise with age |
| Cash value | Usually none | Builds up over time | Depends on fund performance, not guaranteed |
| Suits | High cover during the years you have loans and young kids | Lifelong protection and legacy planning | People who want flexibility and can review the plan regularly |
In Malaysia, many medical cards are attached to investment-linked plans as riders, so your life and medical cover may already be linked. Lulu explains how your existing policies fit together before adding anything.
Riders that round out a plan
- Critical illness: a lump sum on diagnosis of a covered illness such as cancer, heart attack or stroke.
- Total and permanent disability
- Payor or waiver of premium: keeps a child’s policy going if the parent who pays the premium can’t.
- Hospital and surgical (medical card)
Rider names and terms differ between plans. Lulu goes through the policy document with you.
Nominate your beneficiaries
Make a nomination when you buy a life policy. With a valid nomination, the payout goes to the people you named without waiting for the estate to be administered. Read more in wealth legacy planning.