45.5% Malaysian Have One Life Insurance Policy

The insurance and takaful sector are crucial in protecting individuals and businesses against a variety of unforeseen risks and contributes to advancing an inclusive, resilient society. In 2024, 45.5 per cent of Malaysians have at least one life insurance or family takaful policy, an increase from prepandemic levels of 41.5 per cent in 2019.

Life insurance and family takaful policies typically see higher uptake in urban areas like Kuala Lumpur and Penang, in tandem with greater awareness on the importance of protection. Throughout 2024, there were over 530,000 subscriptions of microinsurance and microtakaful products under the Perlindungan Tenang (PT) framework.

Since the launch of the revised PT policy document17 and the implementation of the PT voucher program in 2021, its cumulative take-up has grown significantly and currently stands at 4.9 million subscriptions. This is roughly 49 times the take-up rate since the launch of the PT framework in 2017 up to 2021.

A total of RM17 million in claims was paid out in 2024, showing an increase of 20 per cent compared to 2023.These claims payouts were against unexpected and adverse life events like deaths, personal accidents and critical illnesses.

As announced in the Budget 2025, the PT voucher program will provide financial assistance of RM30 to Sumbangan Tunai Rahmah recipients to purchase or renew PT products.

Beyond PT, the government also extended the mySalam scheme for two more years until the end of 2025. This extension will allow vulnerable groups to continue benefitting from affordable takaful protection while encouraging the take-up of PT products to maintain protection in the future.