The importance of insurance is well known to many of us. How soon you decide to purchase insurance is also essential. As you age, your insurance costs and abilities change significantly. Since you will probably be sick more frequently as you age, you will also likely have more health issues. It is why insurance isn’t a guaranteed option at any moment. Being sick may also prevent you from buying insurance quickly due to exclusions and higher premiums. Is there any insurance you need to consider to ensure your protection when you age? Below are the top 3 insurance plans you may want to consider:
Hospitalization/Medical Card
The last thing to worry about is if high medical bills could lead to bankruptcy in the event of illness, an accident, or injury. A hospitalization policy or a medical card will cover your medical expenses from illnesses or damages covered by the policy. Also, you may be able to pay for expensive private hospitals if you prefer to use them. In addition, you may choose to add hospital income, which provides you with a daily allowance while confined. Medical and hospitalization insurance costs are usually between RM33 a month and RM340 a month, depending on the limits and coverage chosen.
Life Insurance
If you have this, you will receive a lump sum payout upon death and cover any final expenses you may have. You can also use your life insurance policy to pay off any loans you have taken after you pass away, allowing you to keep providing for your loved ones.
Life insurance comes in three forms:
- Term Insurance
- Whole life insurance
- Investment-linked whole life insurance
The following table below explains the differences between these forms of life insurance.
- Term Life Insurance
- Whole life insurance
- Investment-linked whole life insurance
It is one of the most popular life insurance in Malaysia. Providing only a limited coverage period is appropriate if you have young children you wish to protect until they can handle their own needs. Shorter coverage periods result in lower premiums, making it more affordable than other types of life insurance. It provides coverage for your whole life along with a savings component. You can withdraw the savings or use them to pay your future premiums whenever you need them. It costs more than term life insurance for the same level of coverage for an investment-linked policy combined with a whole life policy. Depending on the performance of your investment product, you may receive part of your payout. Typically more expensive than term or whole life insurance.
Critical Illness
You will receive a lump-sum payout under a critical illness policy if you have a diagnosis that could kill you. A condition may be a stroke, heart attack, cancer, or organ failure—payouts from this type of insurance cover medical expenses. This type is also to recoup income. The replacement of income is crucial if you are the sole breadwinner of your family or if they depend financially on you. Critical illness can have lasting effects that affect your ability to work. Your health typically determines an illness insurance premium when you sign up, as well as how many illnesses the plan covers and its benefits. Plans can start as low as RM10 per month to cover three diseases.
How Do You Buy Insurance?
When buying insurance, you’ll usually need to follow these steps:
- Contact Fincrew to find a plan that suits your budget and needs. It is also a good idea to compare insurance policies to get the best coverage for your budget.
- Once you have chosen a plan, the staff will guide you through the application process. If you have a medical or family history, you might need a medical check-up. You’ll be able to get the coverage you want and pay the premium you need based on the results of your check-up.
- When you sign up, you will need to pay your first premium. After that, you’ll have to pay monthly or annual premiums.
Are You Prepared To Protect Your Ageing Self?
Before choosing an insurance plan, you should balance your insurance costs with your monthly or yearly budget and other financial goals. In the end, insurance financially protects you and your family in medical emergencies. Therefore, you should obtain at least a basic insurance plans now that can ease your financial burdens in the future.
