Why is insurance important for Malaysians?

We all worry about our future. All the what ifs that go through our minds day in and day out, adding more anxiety to our already stressful lives. Depending on where we are in our lives, the things we worry about may vary, but we worry nonetheless. Generally, we worry about:

1. Being sick, contracting dengue fever or something even more serious like cancer and a heart disease.
2. Unexpected events such as car or sport accident.
3. Our children’s future and if we have saved enough for their college.
4. The security of our home and other possessions. Will our home be burglarized? What about the risk of damage from flood or fire?
5. Our death and how our family will cope when something unfortunate happens to us.

Wouldn’t it be great if we could put half of these worries aside so we can focus on things that are really important in our lives. Being more productive and creative at work, spending more time with our family and friends. Laugh more, exercise more, take up a hobby, take evening strolls in the park.

So how can we put some of these worries to rest? I am sure we have all realized by now that most of the worries we have are money-related. Unfortunately there is no quick way to solve these worries. Unless you are one of the very few fortunate ones with millions of dollars in your bank accounts. However there sure is a reliable way that we can count on to help ease our burden: Insurance.

Do you really need insurance?

My answer is yes. Why? Because no matter how careful you are and how well-planned your life may be, there are just some things that are beyond your control. But how can insurance help? Well, insurance makes it affordable for the average person to have money available if ever an unfortunate event happens. Especially in Malaysia where saving rate is low and many Malaysians do not have extra money to save for those unforeseen events.

Looking at the above worries that many of us may have, this is briefly how insurance can help:

We worry: about being sick, like contracting dengue fever or something even more serious like cancer and a heart disease

How insurance can help: Medical insurance protects you against financial risks due to illnesses and injuries.

Most often than not, the real worry here is how will we be able to afford treatment for these illnesses. Medical insurance takes care of this. In Malaysia though public healthcare may be relatively cheap, the wait for care can sometimes lead to discomfort, additional complications and even death. Many people have no choice but to opt for private hospitals out of desperation, even though knowing they can not afford it. Insurance can provide access to additional options for your emergency care needs.

The rising medical cost is a concern to all Malaysians.

We worry about unexpected events such a car or sporting accident

How insurance can help: Motor insurance and personal accident plans will cover you against the financial risks in these event.

A car accident can cost you from as little as RM 100 to repair to thousands of ringgit. It is never something we look forward to no matter how small the amount is. An motor insurance, which is mandatory in Malaysia for every vehicle, takes care of the cost to repair the damages and loss, and even covers you for theft. While a motor insurance takes care of all that, a personal accident policy takes care of the cost for medical treatment in the event of an accident.

Car or sporting accident? Sometimes it’s hard to tell.

We worry about our children’s future and if we have saved enough for their college

How insurance can help: Education insurance enables you to save money for your children’s education and makes sure that even after your death your children are taken care of.

A good education doesn’t come cheap, every parent knows and dreads this fact. This is where education insurance can help. Education insurance is devised to help you save and accumulate fund for the purpose of your children’s future education while also ensuring that they can continue their education should you no longer be able to finance their studies due to death or a loss of income due to injury.

Worry about your children’s education?

We worry about the security of our home and other possessions. Will our home be burglarized? What about the risk of damage from flood or fire?

How insurance can help: Houseowners insurance is the plan you would want to get to cover for any loss on your properties and possessions.

Houseowners and householders insurance policies can help give you the assurance that your house is protected against losses in the event of fire, flood and other natural disasters, and also in the event of theft and burglary.

Worry about the safety of your family?

We worry about our death and how our family will cope financially when something unfortunate happens to us

How insurance can help: This is the main purpose of Life Insurance, that is to ensure that your loved ones are protected from financial difficulties after your passing.

The cash lump sum paid out to your beneficiaries from your Life Insurance plan can help reduce their financial burden thus enabling them to maintain their standard of living after your death.

Meanwhile if you are worried about unpaid home loan, the Mortgage Reducing Term Assurance (MRTA) policy protects your mortgaged home from being repossessed by the lending institution/ banks in the case of your death.

Life insurance

These are only some of the benefits insurance can offer us. But perhaps, the most immediate advantage that we can obtain from having ourselves covered is the peace of mind it brings. Just think about it, you no longer have to lay in bed awake at night, wondering what would happen to you if you get an unfavorable answer from your doctor regarding your latest blood test. How will you pay for your medical bills, who will provide for your family, will your children be able to get an education they so deserve?

Someone once said that there is no greater wealth in this world than peace of mind. As a working parent with growing children myself, I truly appreciate this sentiment. After all, life is too short to be living in fear and worry.