Life Insurance: Am Life Malaysia's Ultimate Guide

AmMetLife is a Malaysian life insurance company, formed as a joint venture between AmBank Group and New York-based MetLife. AmMetLife offers a range of insurance and wealth protection products through AmBank's branch offices. The company provides various insurance plans, including life insurance coverage, medical insurance plans, and critical illness insurance. AmMetLife's products are designed to safeguard individuals' and families' futures by offering financial stability and protection. As of March 2015, AmMetLife had a significant market presence in Malaysia, ranking 10th among 14 life insurers.

AmMetLife Insurance Berhad

AmMetLife's authorised team of life insurance agents provides comprehensive coverage across Malaysia. The company aims to be a leading customer-centric and modern insurer, focused on meeting its customers' diverse needs with innovative solutions. AmMetLife helps families and individuals achieve financial security and pursue their life goals.

The company has a strong presence and a proven track record in Malaysia, providing insurance coverage for life insurance, medical insurance, and critical illness insurance. AmMetLife is committed to delivering exceptional service and ensuring customers receive the best possible insurance experience.

AmMetLife has also demonstrated its commitment to sustainability and responsible business practices. The company has an ESG (Environmental, Social, and Governance) theme, with initiatives such as beach cleanups and community children's home donations. This dedication to community engagement and sustainability is an integral part of AmMetLife's culture.

With a range of insurance plans tailored to unique requirements, AmMetLife Insurance Berhad is a trusted name in the Malaysian insurance market.

AmMetLife Takaful Berhad

In addition to life insurance, AmMetLife Takaful Berhad also provides car and property insurance plans. These plans protect individuals and families from financial losses due to damage or loss of their vehicles or properties. The company also offers investment-linked funds, which provide customers with opportunities to grow their wealth and achieve their financial goals.

Term life insurance

As a term life insurance policyholder, you will make regular payments called premiums to an insurance company or bank. In return, you will receive a fixed amount of money (lump sum) as the key benefit, which will be paid out to your beneficiaries in the event of your death. You can also choose to extend your coverage to include terminal illness, critical illness, or total permanent disability.

For example, let's say you have a term life insurance policy that covers death and total or permanent disability, with a sum assured of RM120,000. If you pass away during the coverage period, your beneficiaries will receive the sum assured. However, if you become totally or permanently disabled due to an accident or illness, the benefits will be paid out to you instead.

The main benefit of term life insurance is that it provides sufficient life coverage at the lowest rates. It offers peace of mind by promising a substantial lump sum payout if you die during the tenure of the plan, providing a financial cushion for your family. By purchasing a term insurance plan, you can ensure the financial stability of your dependents even after your death.

When considering term life insurance, it's important to assess your financial and future requirements to determine the ideal plan for your needs. Some key factors to consider include the sum assured, the term or tenure of the plan, your budget, the length of coverage period needed, the number of dependents, any outstanding debts, and your overall financial situation.

In Malaysia, AmMetLife offers the Flexi TermLife insurance plan, which is a non-participating limited premium payment term life plan. It provides an option of 5 or 10 years of premium payment term for 20 years of coverage for death or total and permanent disability. You can also add optional riders, such as an Income Rider or Triennial Income Rider, to provide guaranteed cash payments or a Maturity Rider, which provides a maturity benefit upon survival to the expiry date.

Whole life insurance

There are two types of whole life policies: participating and non-participating. A participating whole life policy allows the policyholder to share in the life insurance company's profits. This means that the policyholder is eligible to receive a portion of the company's earnings in the form of cash bonuses, which are added to the policy's cash value. However, these cash bonuses are not guaranteed and are dependent on the company's performance. On the other hand, a non-participating whole life policy does not provide policyholders with any share of the insurance company's profits. The premiums paid solely cover the death benefit and the policy's cash value growth, without any additional bonuses.

When choosing between term and whole life insurance plans, it is important to consider factors such as budget and the length of coverage needed. Whole life insurance is generally more expensive than term life insurance, but it offers lifelong coverage and accumulates cash value over time. Term life insurance, on the other hand, is more affordable and provides coverage for a specific period, but it does not accumulate cash value.

In Malaysia, AmMetLife offers whole life insurance plans such as ProtectSecure Prime, a traditional non-participating limited premium payment whole life plan, and i.Am Wealth Creator, which provides coverage against death and total and permanent disability (TPD) while also offering flexibility in payment and coverage length. Allianz also offers whole life insurance plans such as Allianz UltimateLink, which combines life protection and financial investment in one plan, and Allianz Ability Life, which is designed for persons with disabilities and offers guaranteed renewal with lump-sum payment upon death.

Investment-linked insurance

Here's how ILPs work: your premiums are used to purchase units in one or more sub-funds of your choice. Some of these units are then sold to cover insurance and other charges, while the remaining units continue to be invested. The value of these units depends on their price, which is determined by the performance of the sub-fund.

ILPs typically provide insurance protection in the event of death or, if included, total and permanent disability (TPD). Depending on the specific policy, the death or TPD benefit may be the higher of the sum assured or the value of the units in the sub-fund, or a combination of the two.

One of the benefits of ILPs is their flexibility. You can adjust your investments by switching between sub-funds when your financial needs change. Additionally, you may top up your investments or make partial withdrawals. Most regular premium ILPs also allow you to adjust the level of insurance coverage as your needs evolve.

However, it's important to note that ILPs do not guarantee returns. The returns are based solely on the performance of the sub-fund, and you bear the full investment risk. Insurance charges for ILPs tend to increase with age, and there is a risk that your units may not be sufficient to cover these charges.

When considering an ILP, it's crucial to assess your financial goals and risk tolerance. Some ILPs are more investment-oriented, offering limited insurance coverage, while others allow you to set the level of coverage you require. It's also important to compare ILPs with other investment products and consider the potential impact of ongoing charges on your returns.

Frequently asked questions