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money matters

Here’s Why Life Insurance Can Be A Better Option For Your Legacy Planning

It’s best to prepare for the unexpected.

here’s why life insurance can be a better option for your legacy planning

Image via Allianz

It’s easy to assume that once you’ve made a will, your loved ones will be taken care of when you’ve passed away. A will has many advantages—for example, it can ensure that your assets are distributed according to your wishes, and expedite the legal processes to transfer your assets to your family.  

However, do you know that there’s still a possibility that your loved ones may not be able to enjoy their inheritance as you intended? This is especially true when debts you’ve accumulated before your death have not been settled.

here’s why life insurance can be a better option for your legacy planning

Image via jcomp/Freepik

As far as legacy planning is concerned, one of the options you should consider is getting a life insurance policy to protect your loved ones and to offset your debts.

Without life insurance, your family members who are not able to pay off your debts might not be able to inherit your assets or might get lesser than what you intended to give them. This is because the executor of your will may need to sell off assets to pay off those debts, and these assets could include ancestral property.

here’s why life insurance can be a better option for your legacy planning

Image via Shutterstock

Before you let any of that happen to your family, you can sign up for a life insurance policy such as Allianz PremierLink Advance, which offers short-term commitment period for your family’s long-term protection.

Here are some benefits you can expect from Allianz PremierLink Advance:

#1 It’s fast to set up and lets you do wealth transfer immediately

here’s why life insurance can be a better option for your legacy planning

Image via Shutterstock

With Allianz PremierLink Advance, you can leave a lasting legacy for your loved ones. For example, think of yourself as Mr C, a 40-year-old non-smoker. You’d like to leave a financial legacy of RM2 million during your active income earning years, so that your loved ones are financially protected if you unexpectedly pass away.

To sign up for this insurance with a basic sum assured of RM2 million, you’ll have to set aside RM41,0001 (that’s 2.05% of RM2 million) annually for 10 years. What’s helpful is that Allianz PremierLink Advance has the flexibility to let you choose one or a combination of Allianz Life investment funds that may potentially reap attractive returns.

here’s why life insurance can be a better option for your legacy planning

Image via rawpixel.com/Freepik

However, if you plan to build RM2 million via other investment vehicles that yield 2% per annum, you’ll need to save RM41,000 a year for approximately the next 34 years instead.

Also, choosing Allianz PremierLink Advance lets you set up a policy with a basic sum assured of RM2 million in less than a month—from meeting up with your life insurance agent to getting your life insurance policy in force.

Even if an unfortunate event such as Total and Permanent Disability or death happens to you during the first policy year, your loved ones will be able to receive a lump sum payout of RM2 million plus the balance in the investment account.

#2 You can choose your desired annual commitment and coverage term

here’s why life insurance can be a better option for your legacy planning

Image via Shutterstock

Everyone has different financial needs, and with Allianz PremierLink Advance, you get flexible coverage term2. Your maximum coverage term is determined by a few factors including your selected coverage and annual premium you wish to pay.

The minimum coverage term for Allianz PremierLink Advance is 20 years and the maximum coverage term is up to age 100.

#3 You’re promised a smooth transfer of wealth upon death

here’s why life insurance can be a better option for your legacy planning

Image via Shutterstock

If you pass away, the insurance proceeds from your Allianz PremierLink Advance policy will be transferred to your loved ones without any interruption (when you nominate your spouse and/or children)—no Grant of Probate or Letter of Administration needed.

#4 You can benefit from creditor proof

here’s why life insurance can be a better option for your legacy planning

Image via Shutterstock

If you nominated your spouse and/or children as your nominees when signing up for Allianz PremierLink Advance, a trust policy would be created. What this means is, the insurance proceeds payable is creditor-proof, meaning that the assets your family receives can’t be seized for debt repayment—which is very important in keeping your beneficiaries secured.

Ultimately, the key takeaway is this: it’s best to be prepared than let your loved ones struggle when you’re gone. If you’d like to get started on protecting your loved ones, head over to the Allianz PremierLink Advance site for more info.

Additionally, if you'd like to learn more about estate planning, Allianz is welcoming you to join their upcoming trust seminar.

Note: Allianz PremierLink Advance is an insurance product that is tied to the performance of underlying assets, and is not a pure investment product such as unit trusts.

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[1] Assuming it’s a 10-year premium payment term and a selected coverage term of 40 years, you pay the premium on an annual basis, and choose to invest 100% in Allianz Life Managed Fund. The coverage term is subject to the sustainability of your investment account.

[2] Subject to the sustainability of your investment account. You may need to top up your premium to ensure continuous coverage up to the coverage term that you’ve selected.

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