How To Financially Protect Your Family, Even When You Are No Longer Around

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We all have dreams and plans for ourselves and our loved ones. It may be as simple as going on a trip to Europe, or paying off your family home – we want to believe we are working towards a goal.

However, are your dreams protected from the uncertainties that may lie ahead?

The reality is that many households are struggling. Malaysians face difficulties servicing their growing debt. Around 50% of urban households don’t have any savings, and 20% would only be able to survive for less than three months if they lose their sources of income.

So how can you financially protect your family’s dreams, even if you can no longer earn an income? Here are three things you need to do.

Prioritise protection for your loved ones

It may be tough to juggle your day-to-day living expenses while working towards achieving your long-term goals. However, to protect your family over the long term, you need to optimise your spending in the present, so that you can build your savings and create a lasting financial legacy.

Make room in your current finances to protect the future of your loved ones. One way to do that is to channel some of your savings into an investment-linked protection plan.

PRUWealth Plus offers premiums that are flexible and affordable and can be spread out over 5 to 20 years. You can even fast-track it by making a full upfront payment so you can give your family financial peace of mind no matter your household budget.

PRUWealth Plus helps you invest your funds so that they can potentially grow at a greater rate, allowing you to achieve large financial goals.

Plan for your children’s education

For most parents, the biggest financial priority is affording their children’s tertiary education fees. If you’re sending your child abroad or to a private university in Malaysia, this is likely going to be your biggest expense as a parent.

A parent we spoke to, Kim, 43, considers her regular living expenses manageable, as they can be adjusted according to a family’s financial situation. However, the mother of two school-age children said that education isn’t something that you can compromise on, as the cost of university education will vary depending on your child’s interests and ambition. “You can’t say that you want a ‘less expensive’ education for your children. It’s not up to you to decide that,” she said.

So what can parents do to help their children reach their dreams? Start by putting aside a fixed amount of savings every month towards your children’s education fund. Consider investing these savings with PRUWealth Plus (via the PRUSaver or PRUSaver Kid riders) to reap potentially greater returns.

However, saving alone may not be enough, as that relies on your continuous ability to earn an income. If that ability is compromised, or if you pass away unexpectedly, you’ll need a protection plan that ensures your child can still pursue their dreams.

The right life insurance plan can provide the protection that your children need. In the event of death or total permanent disability, PRUWealth Plus offers a high basic sum assured that starts at RM500,000. This payout helps ensure that your child can still pursue his or her ambition, even if you are no longer around.

Create a financial safety net

Are you responsible for financially supporting your family? If so, your dependents rely on you to pay for housing, food, bills, school fees, clothes and entertainment. But what happens if you can no longer earn an income, or you pass away unexpectedly? As a parent – and especially as a breadwinner – you need to consider how to keep your family financially secure, even when you are no longer around.

The parents we talked to believe that life insurance coverage is essential for creating a financial safety net:

Liana, 33, is currently working as a data analyst but is resigning soon so that she can care for her son. “I’m finding it tough to leave him with someone when I go to work,” she said. Liana says that having life insurance coverage ensures that her six-month-old son will be financially protected in case anything happens. She has already purchased an insurance policy for her son, even though he is just a few months old.

Kim, 43, considers investment-linked life insurance plans valuable because they are an all-in-one plan that can provide financial protection as well as potentially grow her investments. She stresses that parents should start saving and investing when their children are as young as three or four years old.

“It’s a no-compromise – we need to get insurance,” said Sung Lin, 28. “Having insurance means having peace of mind. For me, for my wife and my son.” Sung Lin and his wife estimate that they would need around RM500,000 by the time their children are ready to enter university to cover the cost of education.

Build a financial legacy with PRUWealth Plus

PRUWealth Plus offers a high basic sum assured so that you can build a financial legacy to leave behind for your children. This helps you financially secure their future, even when you are no longer around.

PRUWealth Plus is an investment-linked life insurance plan that helps you leave a financial legacy by offering customisable solutions through affordable premiums. Here’s why you should consider it:

High Basic Sum Assured. This policy pays out a high sum assured that starts from RM500,000. If something unfortunate happens to you, this will help your family cope with any sudden large expenses that may arise, day-to-day living costs and education fees.
Flexible and affordable. Get protected with premium amounts and payment options (5, 10, 20 years, or full pay) that are tailored to your budget.
Wide options for additional riders. Need additional coverage in the event of death or critical illnesses? Or just looking to grow your wealth to reach long-term financial goals? PRUWealth Plus has a range of optional riders to enhance your coverage.

You cannot predict unfortunate events such as sickness, disability or death. However, providing financial protection for your family in case these events happen is something you can be in control of.

Interested in out how PRUWealth Plus can help you protect your loved ones and realise their life goals? Find out more here.