Fi Life announced the expansion of its existing 20-year level term life insurance policy to 10-year, 15-year, 25-year and 30-year level terms.
These level term policies underwritten by Tokio Marine Life Insurance Malaysia Bhd is in addition to the yearly renewable term introduced in 2015.
With this expansion, consumers can opt for a life insurance policy where premiums are fixed for the duration of the term they have chosen. For example, if a customer chooses a 30-year level term Fi Life policy, they will pay the same level premium for the next 30 years. If she instead chooses a 10-year level term, they would pay a level premium for the next 10 years.
This different level term duration gives flexibility to consumers to select one that is best suited to their protection needs. For example, a parent with very young children might opt for a 20 or a 25-year level term policy, where the coverage period lasts until his children reach working age. For the same reason, another parent, but with teenage children, might select a shorter 10-year level term policy.
Licensed financial planners also have more flexibility in recommending different level term duration periods for their clients, suited to their individual family protection needs.
These level term policies differ from Fi Life’s yearly renewable term policies in that premiums for the level term policies are fixed for the chosen duration. With yearly renewable term policies, premiums increase slightly every year with the policy holder’s age.
Despite higher premiums in the beginning in comparison to yearly renewable term policies, policyholders of level term policies are able to enjoy fixed premiums without worrying about future premium increases.
This provides a price saving advantage in the long run (up to 57% discount for a 30-year level term premium in comparison to a yearly renewable term for a 40 year old non-smoking male). Both types of policies have a critical illness add-on option.
Fi Life and Tokio Marine Life Insurance Malaysia Bhd co-developed the new level term policies based on feedback from customers as well as financial planners.
Fi Life offers instantaneous premium quotes side-by-side, one for the level term policy, the other for the yearly renewable term policy. It claims that consumers only need 10 to 15 minutes to complete the online underwriting process and receive their quotation and make their comparison.
