From next year, the Employees Provident Fund will allow contributors to withdraw money to buy critical illness insurance. According to the full story by V.K.Chin, I found out that:
- the scheme is similar to personal accident plan which expires without cash value
- premium only payable up to age 55, but coverage will continue until 70.
The premium will depend on the age of the insured, therefore those interested in this scheme should start as early as possible since they will be paying less premium than those in the older group
- Four schemes will be offered : Sum assured RM10,000, RM20k, RM50k, and RM100
I discussed about how much critical illness coverage a person needs previously.
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Kindly leave a comment to share your opinion.
Technorati Tags: insurance, EPF, KWSP, critical illness insurance
5 replies to "EPF Money available for critical illness insurance in 2008"
me 22 this year and currently busy-ing myself as one of the honorable insurance students in uitm..
from my point of view, we should grab this oppurtunity not because of money contributing in the EPF but in term of health. how many policy do provide the protection for critical illness? how much peoples are concerned about their health? come on dude..
many thinks that the insurance just a burden especially peoples who are living in our country. sorry but i must said that the life insurance is so-called compulsory as we are living in the 21 century, each person must have at least one policy..
thanks to the government which continuously brings the awareness among the malaysian, i hope this collaboration will change the perception and the mentality of the malaysian about the insurance industry.
Insurance should be something compulsory.
I currently a student around 22 years old, can have a post suggesting what type of Insurance should I subscribed to when I graduate in two years time?
Some people who prefer to use EPF because it doesn’t affect the cash flow. They feel that the money in EPF is locked until age 55. There is not much flexibility for the money sitting in EPF.
In other words, if the person has more cash flow, he has the flexibility to invest or spend the money.
Personally, I will choose to buy it with my savings.
I think retirement and risk management should be seperated and not mixing up together, unless the person has a very clear goal and know what he is doing.