Procrastination On Life

Malaysia’s low insurance penetration rate of 2.8% of GDP is projected to rise to 4% by 2020, with 75% of the population insured. Currently - 54% of the population is insured. 

The process is tedious
Purchasing a life insurance policy is relatively complicated where interested prospect should compare prices, do research and understand before signing on the dotted lines. This process usually takes at least a week, to meet up with different agents from different insurance companies, compare the policy and premium, before deciding on one. Then, you will have to wait for the company to process your application before you will receive the policy. These pain points can be off-putting for most, resulting in people procrastinating their purchase.

Life insurance is expensive
It is normal for many to push life insurance to the bottom of the list when allocating money to other expenses. Unlike motor insurance, which is mandatory, life insurance is not compulsory for Malaysians. Like any insurance, life insurance is purchased as a just-in-case protection and can be purchased on its own without all that investment linked jazz that makes it seem expensive. It is definitely affordable, unlike what is commonly perceived.

It’s difficult to understand the policy
Even the most avid reader will not enjoy reading an insurance policy. This can be overcome by looking for insurance companies that present their policies in an easier to understand manner, and also knowing ahead of time exactly what to look out for in a policy.
Some of the key information to look out for in a policy is:

I’m still young
This is one of the most common excuses people use to delay getting the protection that they need.
It’s true, the younger you are, the likelihood of death will be much lower than an older person. However, this does not mean that death or even permanent disability is not possible. Accidents happen every day, and it is often unpredictable. Getting insured when you’re younger makes it less of a burden later on. Coverage gets more expensive as you get older.

I don’t have dependents
Having no dependents definitely means less financial commitments for a person. Perhaps you are single and your parents are financially independent. However, the last thing you want is to be a financial burden for your loved ones. Without an adequate life insurance, your death can have a negative impact on your family members, financially. Final expenses like funeral can be expensive, and without leaving behind any savings, this cost will inadvertently fall on your family.
If you have other debts, your close family members will also be liable to help your tie up loose ends in your absence. If you lose your ability to generate income, your daily expenses will be borne by your family too.

Furthermore, you may not be single for ever. One day, you will start a family with children, and by waiting until then to get your life insurance, you may see a big jump in your premium. Life insurance does not just protect your family members, but it also helps you to ensure your financial matters are taken care of even when you have passed on.