Life Insurance Buying Guide


Make sure you buy life insurance from a legitimate agent of a licensed insurance company.
Buying life insurance is an important matter as it provides financial security for your family in the future.

In Malaysia, a list of licensed insurance companies can be found on the website of Bank Negara Malaysia and if you need more information, contact the Life Insurance Association of Malaysia (LIAM).


Shop around for rates

Review and compare the premiums and insurance benefits from several insurance companies. Be sure to make comparisons between similar policies as not all insurance policies have similar benefits.


Understand the scope of coverage, policy terms and conditions

Make sure you understand all the provisions of the policy that you purchase. If necessary, seek clarification from the insurance company. Be careful if you are promised a bonus or dividends.


Avoid any unnecessary protection

Do not feel pressured to buy a packaged product that may contain extra protection which is not required. However, you can opt for additional coverage or rider with an additional premium which gave better returns.


Make sure that the proposed life insurance is really right for you

Check the proposed policy carefully to ensure it meets your individual and family needs.


Check the date the insurance goes into effect

The date the insurance becomes effective may be different from the date the company issues the policy. Ask your insurance agent what is the date the policy goes into effect.


Fill in your application carefully

Do not sign a blank proposal or application forms. Make sure you fill in all the information completely and accurately to avoid delays or denial of claims.


Make sure the premium is paid to insurance company

Make sure your check or money order goes to the insurance company and not to your insurance agent and ask for a receipt as proof of payment.


Read your policy when you receive

You are given 15 days to review the content upon receiving the policy. Use this opportunity to ensure that policy is really appropriate for you.

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