Decreasing the number of uninsured is one of the goals under the National Key Economic Areas (NKEAs) spearheaded by PEMANDU. Malaysia’s low insurance penetration rate of 2.8% of GDP is projected to rise to 4% by 2020, with 75% of the population insured.
However, we are only at 54% as of 2014, with 21% more to achieve in five years.
Why are there still Malaysians not insured? Here are five common reasons Malaysians are still reluctant to be insured:
1. The process is tedious
You’ve heard it enough times from us – purchasing a life insurance policy is not something to be taken lightly, and one should compare prices, do research and understand before signing on the dotted lines.
This process usually takes at least a week, to meet up with different agents from different insurance companies, compare the policy and premium, before deciding on one. Then, you will have to wait for the company to process your application before you will receive the policy.
These pain points can be off-putting for most, resulting in people procrastinating their purchase.
2. Life insurance is expensive
When one is living from pay cheque to pay cheque, important but not immediately needed things like life insurance is often pushed to the bottom of the priority list. Unlike motor insurance, which is mandatory, life insurance is not compulsory for Malaysians.
However, it is no less important. Actually, it’s more important. Like any insurance, life insurance is purchased as a just-in-case protection and can be purchased on its own without all that investment linked jazz that makes it seem expensive. It is definitely affordable, unlike what is commonly perceived.
There are various products that cater to the lower income groups, and it can cost less than RM1 per day to get the coverage that you need. Want to know how affordable it is? Get an instant quotation here.
3. It’s difficult to understand the policy
Even the most avid reader will not enjoy reading an insurance policy. It’s definitely not like curling up with a good book.
It is a fairly complex contract that explains all the things you’re covered for, and all the things that are not covered when a loss occurs. And it can go on and on.
This can be overcome by looking for insurance companies that present their policies in an easier to understand manner, and also knowing ahead of time exactly what to look out for in a policy.
Some of the key information to look out for in a policy is:
| Policy number | You will need this when calling to make a change to your policy or report a claim. |
| Dates | The effective date and expiry date outlines when your coverage is in place. |
| Underwriter | The insurer or insurance company |
| Insured | Your name |
| Legal liability | Coverage limit |
| Premium | The cost of your insurance policy. |
4. I’m still young
This is one of the most common excuses people use to delay getting the protection that they need.
It’s true, the younger you are, the likelihood of death will be much lower than an older person. However, this does not mean that death or even permanent disability is not possible. Accidents happen every day, and it is often unpredictable.
And remember, getting insured when you’re younger makes it less of a burden later on. Coverage gets more expensive as you get older.
5. I don’t have dependents
Having no dependents definitely means less financial commitments for a person. Perhaps you are single and your parents are financially independent. However, the last thing you want is to be a financial burden for your loved ones.
Without an adequate life insurance, your death can have a negative impact on your family members, financially. Final expenses like funeral can be expensive, and without leaving behind any savings, this cost will inadvertently fall on your family.
If you have other debts, your close family members will also be liable to help your tie up loose ends in your absence. If you lose your ability to generate income, your daily expenses will be borne by your family too.
Furthermore, you may not be single for ever. One day, you will start a family with children, and by waiting until then to get your life insurance, you may see a big jump in your premium.
All these excuses that are commonly uttered by people who are not insured can be solved easily.
U For Life, the first online life insurance platform has changed the life insurance game in Malaysia. Letting you get instant quotations and then allowing you to sign up for JUST a life insurance plan (clean, simple, none of that add on costs and confusion) immediately. All this from where you’re sitting right now. It’s really never been easier to get insured and it means you can get yourself protected right NOW!
Instead of splurging on an expensive lunch, why not spend that money on your peace of mind?
