Q & ACategory: InsuranceLooking for a complete coverage after committing to a RM 22k per year MLTA
Jason Wong asked 12 months ago

Dear KC,

For context, I’m a 38-yo sole breadwinner for my parents and wife. No kids yet and have 2 mortgages totaling RM 1.7 mil.
I bought an MLTA (Allianz PrimeLegacy investment-linked) which requires me to pay RM 22k per year. The PrimeLegacy product provides Basic Sum Insured RM 281k and could go 5x for accidental death. It is based on the value of the loan of RM 843k for mortgage #1.
The mortgage broker recommended the product since I could cash out after 20-years and it comes with cash value (possibly 2%-5% returns). I start regretting it after I realized the mortgage broker is pro-Allianz.

  1. I now wonder if I made a mistake, how could I have approached getting insurance coverage differently?
  2. I have yet to get medical and CI even. 
  3.  I have plans to buy more property for investments, but I don’t think I need more MLTA than what I have now. Is that the right thinking? What do people (esp. property investors) normally do?
1 Answers
KCLau Staff answered 12 months ago

Hi Jason,
Thanks for sharing.

  1. Insurance is best when you pay the least premium for the highest coverage possible. An Investment-linked Plan can be package in that way as it is flexible. Another option is to take the term life insurance only – available online at Fi-Life. A rough estimate is about RM185/month for 1 million coverage (but premium increases about 4-5% each year)
  2. You definitely need medical and Critical illness coverage. An Investment-linked plan is good to plan with that. Talk to a few agents, or independent financial advisors. Get quote from different companies – tell them you want the adequate coverage with the least premium possible. You don’t care about the cash value.
  3. MLTA or MRTA is important for the property you are staying in. For those properties as investment, and rental yield, your heirs can sell it and they will be debt-free. So you can save the insurance protection for those properties.