The 2013 Protection Gap in Malaysia study commissioned by the Life Insurance Association of Malaysia revealed that four to five out of every 10 Malaysians did not have life insurance. Two common reasons are lack of financial means to pay monthly premium payments as well as limited understanding of life insurance and its benefits.
Making life insurance, and the process of obtaining one, simpler is U for Life, an online Insurtech portal established in early 2015.
“We live in a digital world where there are new ways to reach out to customers to provide them with a solution for life insurance. Purchasing an online life insurance should be a simple process. Customers today look at two important factors when making a decision – quick and affordable.
It takes approximately 10 minutes to purchase life insurance on the website, and policies offered are affordable with monthly payments as low as RM9.80 for a 100,000 coverage – depending on the buyer’s age and risk factors. This should come as good news for the 55.5% of the total Malaysian population that is yet to be insured.
Depending on the buyer’s eligibility, they will be able to purchase the policy with debit or credit card payment. The underwriting is performed by an online “underwriting engine”, and almost 98% of the purchases is approved immediately. The policy will then be emailed to the policyholder’s inbox.
The website sees almost 60% of new customers in the 18-35 years age group, made up of fresh graduates and young working adults. There has also been a slight increase in the number of clients within the 36-44 years age group, and the company aims to expand its reach to a wider range of Malaysians in the future.
U for Life has registered more than RM500mil in sums assured to date. There are no sales agents involved in the transactions on U for Life, and some parties may view this as a threat to the age-old profession.
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