Do you have family, friends or colleagues whom have the perception that insurance is unaffordable and unnecessary? It is common that people misunderstand or underestimate the importance of insurance. That’s why we are here to address the misperception.
Myth#1: I don’t need to get insurance because I am already insured at my workplace through my employer.
Well, life is unpredictable. What if you are jobless one day? This will leave you unprotected financially if any unfortunate events should happen to you after you leave the company. Furthermore, it is advisable to check with your employer whether the group insurance coverage is sufficient for you or your dependants if you lose the ability to work etc.TIP: Get your own insurance plan because no matter where you go, you will always be covered.
Myth#2: Life insurance is too difficult to understand.
Let’s be honest: the thick pages of insurance policies can turn people off. What make it worse is the repeated insurance jargons that can be confusing and at the end, we prefer to sweep the insurance policy under the rug. But life insurance is in fact not that difficult to understand. Let’s begin with the common insurance plans – what it means and how it works.
Term life insurance provides coverage for a certain time period (“term”) such as 5 years, 10 years, 20 years or even up to 30 years. This can be an affordable option if you plan to support your dependants for a limited period, for example, paying mortgages or your children’s education. Term insurance offer flexibility as you can choose your coverage term.
Whole life insurance covers you for life as long as you continue paying the premium. The premium amount may be the same or subject to change depending on the policy you choose.
The common point between both life insurance plans is the beneficiaries may receive cash benefits if the policy holder passed away. For example, if you have purchase a term life with a sum assured of RM500,000 for 20 years, your beneficiary may receive that amount of money if you were to pass away within the 20-year term.
TIP: Visit our “school” on the FSM Insurance website to have a better understanding of the insurance terms and jargons used. If you still don’t understand, consult your insurance agent or talk to our dedicated team of financial adviser representatives.
Myth#3: Life insurance is way too expensive - over my spending budget.
Many Malaysians think that buying insurance can cost a fortune. In fact, insurance premium depends on many factors such as your age, marital status, gender and health. A piece of advice is the younger you buy insurance, the lower premium it could be because you are less likely to face any health risks.
For example, a person just has to pay approximately RM23/month for a term life insurance based on the profile of 35 years old, male, non-smoker, 10-years coverage term, sum assured of RM100,000.
TIP: When it comes to insurance, always start from young.
Myth#4: I am single, young and healthy. Life insurance is irrelevant to me at this stage.
You might be at the prime of your life but you may eventually get married, grow old and fall sick someday. It might be too late or costly when you have decided to get an insurance plan by then.
When you have spouse or children that relies on you financially, what will happen to them if you passed away one day and there is no financial support for them? With life insurance, the death benefit would replace your income to support your family such as paying for their life expenses as well as cover your outstanding debt.
Even if you have no dependant and one day you passed away, you wouldn’t want to burden your parents/siblings with outstanding debts and funeral costs.
TIP: Think of your loved ones and don’t leave them helpless after you are gone.
Are you thinking of getting a life insurance policy? Get a quote or for any further enquiries, drop us an email at firstname.lastname@example.org and our dedicated team of Financial Adviser Representatives will be happy to assist you.
Protect yourself and your loved ones now and enjoy savings at Insurance@FSM!