The Life Insurance Association Of Malaysia reported in February 2017 that the life insurance industry continued to register healthy growth in 2016. With a figure that is five-percent higher than that of 2015, more and more Malaysians are becoming more aware of the importance of insurance protection. If you have not bought a life insurance yet, here are reasons why you should get one:
- It can protect your family in case something happens to you. Life is full of uncertainties. A life insurance is a good option if you have dependents. Internationally acclaimed personal finance expert Suze Orman said if a child, a spouse, a life partner, or a parent depends on you and your income, then you need life insurance.
- You need to save something for retirement. How much will the goods cost at the time you give up work? Due to exchange rate and inflation, the prices of goods tend to become more expensive over time. Take note that your expenses do not end with food and bills. Do not forget about health care when computing for your retirement funds.
- Claiming the benefits is easier compared to other estate plans. All you need to do is choose a beneficiary who will claim the insurance upon your demise. Compared to will and trust, life insurance is way simpler and easier to manage. With a trust, the person has to wait until he is capable of handling the finances. With a life insurance, your beneficiary will only need to wait for the investigation to be completed. As long as you signed an agreement and regularly paid your premiums, your beneficiary will not have a hard time claiming the funds.
- You can use the funds in starting a business in the future. If you have a business that is the source of income of your family, it is needless to say that you need insurance. A life insurance can ensure that the business will continue if the owner dies.
- It can be used in buying a home. The cost of housing in Malaysia varies per location. If you are considering living in the capital city, Kuala Lumpur, you need an average of MYR 772, 126 (US$173,902) to live decently. Your premiums can cover for a mortgage when needed.
Getting a life insurance in Malaysia is a crucial step towards building real wealth. If you can afford a lifestyle, there is no reason why you cannot pay for life insurance premiums. With the increasing prominence of insurance policies, companies are competing by making their life insurance plans more affordable than ever.