1 In 3 Working Adults In M'sia Lack Personal Protection. Here Are Some Reasons Why
"I don't have enough money lah!"
By Jeremy Ng — 30 Jun 2023, 02:54 PM
An article by Ringgit Plus recently reported a survey which states that 30% of Malaysians aged between 25 to 40 years of age lack personal protection. In fact, 16% of them have no plans to save for takaful or insurance at all.
When it comes to buying insurance, we know that it's something important, but a lot of us tend to tell ourselves we can do it later.
In collaboration with Perbadanan Insurans Deposit Malaysia (PIDM), we look at some of the most common reasons Malaysians put off buying insurance:
1. "I don't even have enough money lah"
Whether you're just starting out your career or in a phase of life when you have a lot of financial commitments, having to fork out extra every month for insurance or takaful premiums can be a pain.
However, getting protected by insurance is not that expensive. For instance, just by cutting down on a bubble tea or coffee a week, and reducing some of your monthly subscriptions, you can easily afford a basic insurance plan.
Plus, insurance and takaful plans come in many shapes, sizes, and forms. The great thing is that you don't need to feel pressured to get the most expensive plan or the highest amount of coverage. There are lots of affordable premiums out there that can help protect you, depending on your needs.
2. "I'm single and capable. There's no one relying on me right now."
One of the most common reasons people put off buying insurance, especially life insurance, is because they don't see a need for it at the moment.
However, while you may not have dependents right now, that doesn't mean you won't have any in the future, be it kids or parents. Also, even if you have a good salary and savings set aside, there's no guarantee that it would be enough to cover your costs if something unexpected were to happen.
While you may be capable of taking care of yourself physically and financially today, there may come a time when you lose the ability to work or provide for yourself — this could come in the form of a critical illness or a temporary disability. This is where insurance can help support your living expenses and loved ones financially during your recovery phase.
3. "I'm still young and healthy, need insurance for what?"
Insurance plans give you the best value-for-money while you're young and healthy.
The older you get and the more health complications you have, the more expensive insurance premiums will get, and the harder it'll be to get comprehensive coverage.
Furthermore, illnesses among young adults are on the rise — almost one in five heart attacks occur in patients younger than 40 years old, as reported by the New Straits Times. In fact, a study on Coronary Artery Disease among Malaysians found almost 70% of participants aged 15 to 24 had at least one cardiovascular risk factor.
That is why it's always best to get insurance sooner than later. We can never predict what tomorrow will bring, so it's better to be safe and protect yourself while you can — the extra monthly insurance or takaful premiums will pay off in the long-run.
No matter your age, health condition, and financial status, insurance is still important because it helps provide you with a safety net
While we may not like thinking about what could happen to us, it's crucial to always plan ahead, and in a sense, 'prepare for the worst'.
When you are fully prepared and protected, that's when you can live your best life without worrying about anything. In fact, you and your loved ones will have extra peace of mind — even in the case of an emergency, you'll know that you're covered financially.
Start living your best life today! Plus, you can enjoy an added layer of assurance because PIDM provides protection to all takaful certificate and insurance policy owners.
PIDM is a government authority established in 2005 under Akta Perbadanan Insurance Deposit Malaysia, with a role to protect bank depositors and owners of takaful certificates and insurance policies, in the event of a member institution failure.
In simple terms, they ensure that your insurance and takaful benefits will be upheld. And, if your insurance company or takaful operator were to go bankrupt, PIDM will ensure continued coverage for your takaful or insurance benefits. PIDM protection is free and automatic. No registration and no payment is required
Additionally, PIDM is committed to promoting financial literacy among Malaysians, which includes providing tips on personal finance, savings, and insurance under their #SediaPayungKewangan campaign. Find out more here.
