As a financial adviser, if you were to recommend a policy to Jeff and Ann, what type of

policy would you suggest? Why?

Jeff is a teller in local bank while his wife Ann is a housewife. Ann does not have any income as
she is not working, so she depends on Jeff’s income to cover the household’s expenses. Jeff is
planning to purchase an insurance policy as he receives pay raise which is RM60 per week and
his monthly income is RM3200 per month after tax deduction. If Jeff dies, SOCSO payment to
Ann would only be roughly RM 1,550 per month which is insufficient for Ann n her children.
This could be difficult for Ann to survive later when Jeff dies. The family’s total expenses would
be higher due to condition of economy and after Ann gives birth to her second baby.

I would advise to both Jeff & Ann to take up a Comprehensive Plan which is smart medic one of
the health insurance from Great Eastern. This covers the life coverage for death and total and
permanent disability, critical illness, accident, hospital coverage and the most important is
medical plan. Comprehensive plan is a product of the life insurance which provides profits
beyond a life cover or death benefit. It also defends Jeff and his family with a serious sickness
cover. The function of Comprehensive plan is mainly in providing for cost of healthcare for
recovering major diseases. The family has been supported by this plan for the losses of income
throughout the serious sickness. This cost of medical is rising in Malaysia up to time. Jeff and his
family able to get a proper and timely healthcare. Their mind would be peace as they have a
proper insurance coverage. I would advise Jeff to only purchase at 10% to 15% of his salary so
that he can continuously pay his insurance premium to avoid lapsation. If Jeff discontinue paying
the premium payment, then the insurance policy will lapse. The
financial burden of death for dependents is lessen. Comprehensive plan is included health
insurance which is Smart Medic. Jeff and his family can get high annual and lifetime limits
where the medical claims will be compensated in a total amount, with a maximum initial annual
limit up to RM200,000 and up to RM2 million for the lifetime limit. This insurance will add the
protection of Accidental Death Benefit. Ann and her kids will obtain an Accidental Death
Benefit roughly RM20,000. Even though Jeff is covered under Group Insurance, the coverage
normally won’t be higher. Jeff only has a Group Insurance where upon his death, his family gets
a basic which is insufficient to continue a normal life. However, the Group Insurance will expire
once Jeff resign, retired or death.
I would suggest Jeff to purchase life insurance which is Smart Protect Wealth 20. This insurance
plan provides many benefits to Jeff and his family. Firstly, this insurance provides protection
with flexible premium payment for 20 years. It covers Jeff for 20 years by selecting the chosen
premium payment terms which could be 5, 10 or 20 years. The coverage expands until the
maturity. This plan comes with 10-year of expansion of coverage at maturity, which
extends extra protection for 10-year periods, until the age of 100 years. Once Jeff’s
policy matures, he can obtain 100% of the entire investment value with fewer obligation  

Moreover, there is ‘No-Lapse Guarantee in Smart Protect Wealth 20 for the first 6 policy years.
This is an essential purpose which guarantees that your policy remains in force even if the value
of entire investment is zero, however the premiums must be paid frequently on each premium
outstanding date or at least through the grace period. There are no withdrawals made within the
first 6 years of the policy. This can prevent the policy from being lapsed. Basically, a no-
lapse contract can give a guaranteed death benefit for a certain amount to a policy holder for life.

References

Irdai 2017, Term Plan Vs Comprehensive Plan, viewed on 10 December 2019,

https://blogs.edelweisstokio.in/term-insurance/term-plan-vs-comprehensive-plan/

Lan Lee 2019, 5 Reasons Why Your Family Needs a Medical Card, viewed on 10 December
2019, https://www.gobear.com/my/blog/5-reasons-why-your-family-needs-a-medical-card

Great Eastern, 2019, Smart Protect Wealth 20, viewed 10 December 2019,
https://www.greateasternlife.com/my/en/personal-insurance/our-products/life-
insurance/smartprotect-wealth-20.html