• The Importance of Having Insurance in Malaysia

    Everyone wants to lead a stress-free and a happy life. But at the same time, you need to be prepared for any unfortunate events that can take place without a warning. It could be an accident, illness, or even a natural disaster that can trouble your safety as well as your financial position.

    To sail through such financially draining situations, you need to have insurance at various stages of your life. Insurance would include life insurance, motor insurance, health or medical protection and home insurance. Depending on your situation, such covers would provide protection for various unfortunate events where you do not have to worry much about your financial condition.

    Let’s take a look at the different types of insurance policies available in Malaysia, and how they are important for you.

    Life Insurance Policy

    • A life insurance cover can be useful during any life-threatening events such as accidents, total and permanent disability, critical illness, or in case of death.
    • Whole life insurance covers offer a pre-decided sum of money after your death.
    • A life insurance policy with endowment plan allows you to invest and save money for the future. Retirement plans in a life insurance cover provide you funding in the form of pension.
    • Furthermore, if your accidental total and permanent disability is putting you off work, your life insurance cover ensures that your and your family’s expenses can be handled.
    • You can also opt for add-ons or riders with your term life insurance policy such as riders for accidental disability, critical illness rider and income benefit rider.

    Health Insurance Policy

    • A medical or health policy is a good way of getting yourself secured when it comes to medical or health related expenses. This type of insurance would cover your medical bills along with your hospitalisation expenses.
    • Expenses related to surgery and accidents are also covered in medical insurance policies.
    • You can also purchase multiple add-on covers or riders on your medical policies such as critical illness plans and motor accident protection.
    • Beginning as early as age of 1 year or in some plans as early as even before the birth, you can insure your children up to 100 years of age through a medical insurance policy.
    • Many medical insurance plans come with the facility of providing health cover to you as well as your family under one insurance.

    Motor/Car Insurance Policy

    • In Malaysia, a motor or car insurance cover comes with 3 variants: comprehensive insurance policy, third-party, fire and theft cover, and a third-party insurance cover.
    • A comprehensive insurance policy covers any physical damage caused to the third-party or their vehicle as well as the damage caused to yourself and your vehicle.
    • In a third-party, fire and theft cover, along with other-party physical and vehicle-related damages, you can also claim your own vehicle damage caused due to theft or fire.
    • A standard third-party car insurance policy covers the damages caused to the third-party due to an accident.
    • In Malaysia, it is important to have at least one of these types of insurance covers, a third-party insurance policy being the most basic one.
    • A car insurance policy can come with an array of additional services that include, towing services, 24x7 road assistance and battery change facility. At times, these facilities quite handy as during an emergency, you do not have to pay directly from your pocket.
    • A car insurance has a provision called ‘No Claim Discount’ (NCD), which enables you to get discount of up to 55% on your insurance premium.
    • You can also take add-on covers on your car insurance policy such as windshield damage cover, cover against accessories, named driver cover and cover for special perils cover such as earthquakes, floods and landslides.

    Education Insurance Policy

    • You can build your kid’s academic future with the help of an education insurance plan.
    • With ever-increasing costs of educational courses, pursuing higher educational courses can be much easier if you have an education insurance policy.
    • Endowment and investment-linked insurance provides funds at maturity that can pay for your child’s education.
    • You can also get a bonus amount on your total premium of the plan through some policies.
    • Payor benefit riders help your child to support his/her education even after your death or any permanent disability.
    • The factors that determine the type and premium of an education insurance are: location of study (local or international) and type and duration of course.
    • Education insurance policies also come with tax benefits.

    Houseowner Insurance Policy

    • This type of insurance cover is important to safeguard your house and assets against any accident or any property related damages.
    • You can obtain covers for fire, explosion, theft, natural calamities, or any other household emergencies like leaked roof, broken pipes and short circuit.

    Insurance policies can cover you against various unfortunate situations. For any situation, there is an insurance policy that will cover that situation. Consider the benefits of insurance and opt for a plan that will fulfill your needs. Always compare quotes before you purchase any policy.

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