“We live in an unpredictable world these days,” according to a quote from DBS Singapore. While we are still breathing in the air, the worst things that could happen to us are the death of ourselves or the people we love, financial hardships, and road accidents. We never consider or assume that a pandemic could occur in the modern era and have a major impact on every aspect of our lives, such as the effects of COVID-19. According to Bernama, more Malaysians, particularly young adults, are aware of the importance of life insurance. In this article, we are going to share the importance of buy comprehensive protection for young adults Malaysia.
1) Insurance Policy is more affordable
Did you know that in the insurance industry, age can have a significant impact on life insurance rates? According to Investopedia (2022), our age can influence whether life insurance rates are more expensive or more affordable for us to pay per month. When purchasing a comprehensive protection plan for young adults in Malaysia, the insurance company will charge the young adults lower rates than the adults. Meanwhile, adults must pay higher premiums for life insurance. For a more concrete example, consider the life insurance rates that a 23-year-old man and a 43-year-old man must pay. If a 23-year-old man and a 43-year-old man both buy a 40-year life insurance policy with a sum assured of RM 53,736.45, the older man must pay an annual premium of RM 1,186.58 while the younger pays only RM 290.19.
2) The Waiting Period is quite shorter
Another important reason to strengthen your decision to invest in a Malaysian financial protection insurance policy is that you may be able to reduce the lengthy waiting period for claiming your life insurance. A waiting period is the period of time specified in your insurance policy before you can begin receiving some or all of your health or medical coverage. As a result, the earlier you sign up, the sooner you will be past the waiting period and eligible for immediate benefits in the event of an emergency.
3) As Retirement Preparation
Attention, dear young adults! Yes, you read it correctly! It is true that by looking for insurance plans for young adults in Malaysia and later, investing in insurance plans, you can turn your life insurance into a financial plan for retirement. According to Investopedia (2022), you can use a life insurance policy to fund your financial retirement. Life insurance policies with a cash-value component permit the cash-value account to increase over time and be used as a steady source of income during retirement.
4) Protection for your Finance
Last but not least, insurance is important because it can provide financial protection to those who are insured. When your assets, such as cars, are damaged, for example, in a car accident, or your home is destroyed by fire, the insurance company will assist you in covering the loss and damage in a large amount. In addition, in some cases, insurance acts as a financial safety net, assisting you and your loved ones through financial safeguards. It also allows them to go about their lives with less stress, which is especially important when large financial burdens such as medical bills, mortgages, debts, and others can easily devastate your family’s financial situation.