Be aware of Malaysian Insurance.
Most people are not unaware of the term insurance and how it functions. Briefly speaking, insurance is a practice or arrangement whereby an insurance company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. People already knew it long time ago, either engaging the services of agents or buying insurance on their own. Here in Malaysia, there is another insurance option called Takaful which is based on the Shariah laws and more specifically cater to Muslims. So what do you know about insurance and seeing a long list of health insurance companies offering a myriad of different insurance packages, how are you going to determine which one is the most suitable for you?
There are 3 common types of Malaysian insurance available for the market which are Medical and Health, General and Life. Here we shall explain how each of these works in layman terms so that you know which affordable insurance to buy for yourself and your family.
The most basic insurance that covers you in the event of illness or injury due to an accident or illness. This is especially useful where it helps to pay off your medical expenses and if necessary, hospitalisation cost which could be quite burdened if you do not have enough fund readily available. It is the most essential insurance for people to have and there are numerous types of medical and health insurance covers offered in Malaysia which includes medical card, critical illness plan and hospital income insurance. Medical card provides medical coverage for any expenses incurred during hospitalisation due to illness, accident and injury. Critical illness plan entitles you a lump sum of cash upon diagnosis of any critical illness like heart attack, cancer, paralysis, Alzheimer, Parkinson’s etc. Hospital income insurance pays out an agreed amount of money to you when you are hospitalized.
General Insurance includes motor insurance, travel insurance and personal accident. Motor insurance protects you financially from road accidents involving vehicles.Moreover, you could also add on to purchase theft, fire or own damage protection that will protect the value of your car. Travel insurance, on the other hand, protects you from risks such as travel cancellation, flight delays, medical emergencies, lost and delay of baggage, loss of passport etc. Personal accident insurance pays you a fixed amount of money if you suffer partial or permanent injury, disability or death due to an accident.
Life insurance pays out a sum of money to the beneficiaries upon the death or permanent disability of the person insured. It is divided into whole life and term life insurance where the difference is the period covered (upon maturity age is reached for whole life and death for term life). Another stark difference is the whole life contains savings benefits while term life does not.
You have the required basics of insurance knowledge with you now in order to make a wise decision on the purchasing part. You could choose any insurance plans on your own or you could engage Smart Wealth consultation service where we help you to pick the best option for you and your family.