WHO SAYS YOU NEED INSURANCE?

When we talk about insurance, we all know that it is essential for everyone to possess. However, it is shocking to know that there are many Malaysians who are still not insured or underinsured. Undeniably, there is a huge protection gap in Malaysia.

In an article from The Malaysian Reserve published in August 2019, it stated that only 54% of the Malaysian population are covered by life insurance or takaful plan, and 90% of those insured are considered underinsured. This is a growing concern as when unfortunate events arise, it usually has the strongest impact on people whom we are closest to. Insurance can be extremely complicated and confusing. Many young adults find themselves not knowing what kind of insurance they have or what types of insurance they have covered as their parents have been affording it for them before they know what insurance is.

To be precise, insurance is a protection from financial losses. You pay a premium (insurance fee) and get covered for future risks. When you find yourselves in the midst of hardships in the future, you will get a sum of considerable money to help you overcome those problems. To put it in another way, you are paying for your future itself. You are letting the younger version of you to take care of the older version of you. As no one knows what might happen tomorrow, you could be having the best time in your life and next thing you know is that you may be lying in the hospital preparing for a life-threatening surgery.

Ultimately, there are 4 types of life insurance products; Death, illness/disease, retirement, and kid’s education.

You may need to think twice when:

• You are not able to work anymore, who would be the breadwinner for you and your family?
• You fall sick and you are not able to work anymore, who will provide for you and your family?
• You retire or grow too old to work, who would be the one to support you and your spouse?

Insurance is a tool that helps to eliminate the risks you might face in your lives. We all know that death comes to all and no one can escape from it. Buying insurance guarantees money for your loved ones when you kick the bucket. It is by far the most important investment that everyone should have.

If you DO NOT have insurance yet, please rethink your finances. You will never regret because it will definitely be the greatest investment in your lifetime.