Purchasing Both Disability And Life Insurance At The Same Time

invest in life and disability insurance policy malaysia
Ismail Saad
June 23, 2022

Disability insurance makes sure that you and your family are financially secured while you are still living, in contrast to life insurance, which protects your family from loss of income after your death. If you become disabled and are unable to work, the disability insurance coverage will replace your income. It is a crucial component of your financial security strategy, along with life insurance. So, invest in life and disability insurance policy malaysia now!

Applying for a policy when you’re looking for life insurance makes the procedure much simpler if you don’t already have long-term disability insurance. Life insurance applications take five to six weeks, while disability insurance applications take four to six weeks on average. The medical examination can be used for each application process.

What does life insurance cover?

If you pass away, life insurance replaces your income for your beneficiaries. For anyone with dependents, it is a necessary type of financial protection to ensure that they do not suffer financially as a result of losing a breadwinner.

Medical expenses, funeral expenses, mortgage payments, college tuition, student loan repayments, and even vacations can all be covered by the life insurance death benefit. Your family and dependents can use the money as they want because life insurance benefits are frequently tax-free.

What does disability insurance cover?

Long-term disability insurance is a type of income replacement, much like life insurance. Long-term disability insurance, however, safeguards your income while you’re still alive, in contrast to life insurance. The long-term disability benefits pay out roughly 1-3 percent of your wage for the period of time indicated in your policy if an accident or illness prevents you from working.

One in four people experiences a disability at some point while they are employed, therefore the likelihood of being incapacitated at some point in your career is high. Examples of illnesses that may make it difficult for someone to work include cancer, back and muscle discomfort, depression, and anxiety.

Why you ought to submit a joint application for life and disability insurance

Applying for life insurance and long-term disability insurance are both fairly comparable processes. By submitting applications for both at once, you can save spending months going through the same process twice and guarantee that you have all the financial protection you need.

The following steps in the underwriting process are necessary for both insurance policies to provide coverage:

  • a quick phone interview to determine your eligibility and the level of coverage you require.
  • a medical examination to evaluate your health and establish your payment amount.
  • An APS, or attending physician’s statement, is used to gather details regarding any unanswered medical queries.

Your salary and occupation are typically also questioned throughout the disability insurance underwriting procedure. To obtain coverage that meets your financial needs, you could be asked to present documentation of your income.

Because each insurance company has slightly different underwriting guidelines, disability insurance rates and life insurance prices vary for each insurer. High blood pressure may result in a higher premium from one insurer, while your family history may be more important to another. Because an agent can analyse both applications and discover the best rates for your life insurance and disability insurance coverage, working with an independent broker like Policygenius simplifies the process.

invest in life and disability insurance policy malaysia