Things You Thought You Knew About Life Insurance
AS OF 2014, MALAYSIA BOASTS A 93% RATE OF CAR OWNERSHIP WITH 54% OF HOUSEHOLDS HAVING MORE THAN ONE CAR. IN THE SAME YEAR, MOBILE PENETRATION IN MALAYSIA STANDS AT 140%, WITH 47% OF MALAYSIANS OWNING MORE THAN ONE MOBILE PHONE EACH.
Text Tokio Marine Life
In stark contrast against that, the combined insurance and Takaful penetration in Malaysia currently stands at a penetration rate of 56% – a relatively low number compared to other developed countries.
Life insurance helps people to protect their family and loved ones financially in the event of an unexpected death. Most Malaysians are generally aware of what life insurance is and what it does but there are also a lot of inaccurate information and myths regarding life insurance.
MYTH 1: LIFE INSURANCE IS TOO LARGE A COMMITMENT FOR ME, ON TOP OF EVERYTHING ELSE I HAVE TO PAY FOR.
In life insurance, ‘keeping to the essentials’ is the philosophy that one should adopt. A basic term life product – which is all most people need – is very affordable; offering the most protection at the lowest cost. With as little as RM9.85 per month for life insurance protection of RM100,000 one can purchase a life insurance policy from the internet.
MYTH 2: I’M YOUNG AND STILL HEALTHY SO I CAN PUT OFF GETTING A LIFE INSURANCE POLICY UNTIL I NEED IT.
Life insurance, like all insurance, is the type of product you have to buy before you need it. That means the time to purchase life insurance is when you’re young and healthy. Age is one of the most critical components for insurance companies to determine life insurance premiums; the younger you are when you apply for a life insurance policy, the lower the monthly premium you’ll have to pay. If you wait, and you develop a serious medical problem, you may not be able to get the coverage you want. In addition to that, when you are younger with a young family, you will need more life cover as your children and spouse are likely to have a long life ahead of them.
MYTH 3: THERE IS NO NEED TO GET A PERSONAL LIFE INSURANCE POLICY SINCE MY JOB ALREADY OFFERS IT AS PART OF MY EMPLOYMENT.
Having a life insurance policy through work is a great benefit – albeit a temporary one; as the coverage will end if and when you leave your position. A personal life insurance policy ensures that you remain protected no matter where you work. In addition to that, most group term policies are insufficient – typically amounting to about two or three times your annual income. A general rule of thumb is that the death benefit on your policy is 10 times the amount of your annual salary. To depend entirely on the policy offered at work is certainly not enough to keep your family adequately protected.
IT’S TIME TO GET PROTECTED!
Being covered by a life insurance policy means that your appointed beneficiaries will be taken care of in the event of your unexpected death. Life insurance should be seen as a necessity and it is high time Malaysians prioritise a life insurance policy as their very first investment into living a responsible life.
Launched last year, Tokio Marine Life Insurance Malaysia Bhd in collaboration with Uforlife introduced Malaysia’s first internet insurance platform. One can purchase life insurance at a click of a button and receives an e-policy instantly. Designed with the needs of consumers in mind, Tokio Marine Life is committed to helping more Malaysians get insured by offering a simple, instant and affordable way to buy life insurance online.
All life insurance policies purchased online is underwritten by Tokio Marine Life Insurance Malaysia, a leading life insurer with a history of over 65 years in Malaysia.