High premium life insurance policy:-
- Wealth transfer
- Asset Accumulation
- Asset Allocation (Portfolio Balancing)
- Loan protection
- Business protection
- Business stand-by fund (Cash Flow Planning)
Low premium life insurance policy (Annual premium RM10,000 and below):
- Income replacement
- Loan protection
- Force saving plan
- Regular saving plan
- Education fund planning
- Retirement fund planning
- Business: Keyman protection / Business Continuity
- Business: Buy-Sell Agreement
Super low premium life insurance policy (Annual premium RM1,000 and below):-
- Income replacement (mainly term life)
- Childcare (the death of a stay-at-home parent may immediately trigger the need find and pay ofr childcare)
- Final expenses (funeral expenses, medical bills, credit card outstanding, personal loan, income tax etc)
Everybody needs life insurance but the rich want life insurance as a tool to manage their wealth.
