You work hard to give your family a comfortable living space and enough food on the table. But is that enough? What happens to your family if you are no longer able to provide for them? During these uncertain times, you need to take the extra step to give your family the protection they need. Here’s why.
Does your family have a protection gap?
If you’re like most Malaysians, your family may have a protection gap. This refers to the difference between how much savings a family currently has and the amount needed to maintain their standard of living if their primary wage earner passes away. According to a 2012 report by the Life Insurance Association of Malaysia, the average protection gap per family (assuming two parents and three children) whose primary wage earner had no life or medical insurance was RM723,000. For primary wage owners with life and medical insurance, the protection gap was still RM553,000 per family.
More recently, a Ministry of Health survey reported that only 22% of the Malaysian population is covered by personal health insurance. Among the B40 group, only 4% have some form of life insurance or family takaful policy, according to a report in 2015.
But not having coverage at all can be risky. Without adequate coverage, you’ll have to pay for your family’s medical expenses out of your own pocket. And they can be expensive: a coronary bypass surgery at a government hospital can cost between RM3,000 to RM5,000 – this doesn’t even include other costs such as diagnostic fees or room charges. These expenses increase every year – this year, it’s expected to rise 14% from 2019.
On top of that, we’re dealing with the COVID-19 pandemic and its economic effects. As of November, Malaysia faces a new wave of cases. Besides its health risk, the pandemic can also threaten your finances. Nearly 90,000 Malaysians have already lost their jobs this year, while 21% reported a negative impact on their income. If you don’t have takaful or insurance coverage, and the recession affects your income, how would you pay for a medical emergency?
A little effort can help close the gap
One of the best ways to protect your family is to get adequate insurance or takaful coverage. Medical takaful can help pay for your medical costs, so you won’t have to rely on your income or savings – or worse, take out a loan – to cover emergency health expenses. It’s also comforting to know during this pandemic that your takaful operator will provide extra coverage if you have been diagnosed with COVID-19 which may include additional death and hospitalisation benefits.
In addition, family takaful coverage can provide a financial safety net for your loved ones. Should anything happen to you or your ability to earn an income, a takaful plan will give your family a financial payout. This can help cover everyday living costs (through income replacement) until your family gets back on their feet again. So, how do you begin?
Take advantage of government initiatives
Getting adequate coverage has never been easier. During the tabling of Budget 2021, two government measures were introduced to make getting takaful and insurance coverage more accessible and affordable:
- Perlindungan Tenang voucher. Eligible B40 recipients will be given a RM50 voucher to purchase approved life insurance, family takaful and personal accident products under the Perlindungan Tenang Scheme starting April 1, 2021. The stamp duty exemption on these products will also be extended until 2025 (for annual premiums or contributions of RM100 or below).
- EPF withdrawal. Employees Provident Fund (EPF) members can withdraw Account 2 to purchase critical illness and life insurance or family takaful products approved by EPF.
This is in addition to an existing tax relief on your insurance premiums/takaful contributions: pensionable public servants can claim up to RM7,000, while non-public servants can claim up to RM3,000.
Complete financial security and health protection for the family
Now that you know about how important takaful coverage is, what’s next? Shopping for takaful coverage can be intimidating, as there are many different plans out there. Things get a bit more confusing too when you have family members who need their own coverage.
Here’s where AIA PUBLIC Takaful comes in to help you bridge the protection gap. AIA’s A-Plus Total Health is a takaful health plan that safeguards you and your family from escalating medical costs.
- Comprehensive medical protection. Takes care of your medical bills so you can focus on treatment and recovery. You’ll receive up to RM2 million per year in medical protection, without a lifetime limit. This includes outpatient treatment for major illnesses such as cancer and kidney dialysis. You can also opt not to be hospitalised and still be covered for conditions such as Dengue, Bronchitis, Influenza and Pneumonia.
- Health Wallet. This first-in-market feature rewards you when you don’t make any claims. An amount will be credited to your Health Wallet which can be used for deductible payments, illness prevention even special car. You can utilise up to RM300 per year for health screenings and vaccinations, giving you better control of your health;
- Family boost. Extend medical coverage to your spouse and children (up to six family members) under a single plan.
- Personal Medical Case Management (PMCM). Gives you advice from the world’s leading specialists on the best possible treatments throughout your medical journey.
A-Plus Total Health is a rider that’s offered through A-Life Ikhtiar, a family takaful plan that gives your loved ones a financial safety net if something unexpected happens to you.
- Death benefit. Provides your family with a lump sum payment in the form of Hibah in the event of your demise. With Hibah, the coverage amount is not subjected to the Islamic law of estate/inheritance distribution.
- Accidental death coverage. 200% of the sum covered will be paid to your family if you pass away due to an accident.
- Badal hajj benefit. RM5,000 for your family to arrange for Badal Hajj on your behalf if you pass away.
- Surplus for charity. Donate any surplus you may receive to a charitable organisation.
A-Plus Total Health and A-Life Ikhtiar can give your family comprehensive medical coverage – from prevention and early detection, all the way through treatment and recovery while ensuring access to the best possible care. Plus, you can adjust the coverage to suit your needs and budget. These plans make it simple and affordable to give your family the coverage they need.
Prepare today, for a better tomorrow
Protecting your family financially and medically is as easy as getting adequate coverage, so don’t delay – a little effort goes a long way, especially during these uncertain times.
