Reader’s Q&A via web message (edited for clarity & anonymity): I am migrating overseas & would like to ensure I have life insurance although I will be on a limited budget? I currently have an existing policy. I estimate I will need coverage for 2 years before I obtain PR. Can I withdraw from EPF or are there any other suggestions? Please advise, thanks! ~Miss V
Dear Miss V,
Thank you for your query. It would definitely be important to ensure you are securely covered during your migration process.
EPF Withdrawal for Leaving Country
- Reduce your coverage (possibly reduce critical illness coverage, medical plan coverage, or other unnecessary riders)
- Check how much this will reduce your monthly payment but estimated it will be reduced to minimum 1200/year (100/mth)
- Check how long the policy will sustain with a premium holiday (you no longer make monthly payments but is deducted from your cash value instead)
- As you are in Malaysia in the 2 years, it is important to have medical coverage.
- Term medical coverage is affordable when young from 500/yr
- Term life coverage is also affordable with 100k basic sum assured (Life/TPD) from 400/yr
- Another alternative to term life coverage is to take Personal Accident coverage instead. However, a PA provides only limited coverage of death, disability, medical, funeral, etc) from accidents but at lower costs (50k coverage for 110/yr; 100k coverage for 168/yr)