What are the common types of insurance for Malaysia, you may ask?
On every occasion, the word ‘insurance’ itself has no interest in most people. Try to mention anything related to the topic, people will tend to ignore you or find your topic quite boring! Well, it is regarded as norm for people in Malaysia to avoid insurance agents whenever they bumped into one. This is probably due to the fact that they don’t really know there are actually different types of insurance for Malaysia. What is more surprising is those who do own a policy or two, bought these policies without knowing their benefits and how it works!
If you ever feel lost in finding the best policies, insurance companies are more than happy to keep you and loved ones protected especially those with niche interests or have special needs! So, what are the types of insurance for Malaysia? In this article, we have listed down the basics of insurance that you need to know that exists in Malaysia.
Types of Insurance for Malaysia: Life Insurance
It is unquestionable that you must put life first before anything else. Life Insurance is actually one of the most popular types of insurance for Malaysia. Regardless of your age, race, ethnic or background, your life should be your top priorities. Life insurance helps to protect yourself from any uncertainties that may happen at any certain point of time. Most of the time the policyholder will fund their premium regularly for an agreed amount of coverage and if the specified event such as death or an accident come off, the amount of coverage will be paid. Truth is, we never know what will arrive upon us for the next 10 years or even tomorrow. Hence, getting the most appropriate life insurance is really important.
Types of Insurance for Malaysia: Medical and Health Insurance
Medical and health is probably one of the most basic types of insurance for Malaysia in case of emergency such as illness and death. It is used for meeting a range of medical treatments covered by your medical insurance policy. In Malaysia, Medical Insurance is offered by both General Insurance and Life Insurance companies. Literally everyone needs this insurance for the sake of their family members. Thomas Fuller used to say that ‘health is not valued till sickness comes’. Therefore, you have to think wisely for unforeseen events in your life. If you still live with your parents and under their care, they may have a policy which covers you. But for those who already on their own, it is crucial for you to consider having a medical and health insurance. There are numerous types of medical and health insurance covers offered in Malaysia, here are a few:
Medical Card Insurance (also known as Hospitalization and Surgical Insurance)
Medical Card Insurance provides medical coverage for any expenses incurred during hospitalisation due to illness, accident and injury. It is one of the vital types of insurance found in Malaysia which aid in claiming from the insurance company. How it works? The medical bill will be sent directly to the insurance company so that you can proceed with the payment.
Critical Illness Protection
Also known as critical illness cover or a dread disease policy, Critical Illness Protection is an insurance product in which the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses as part of an insurance policy. The specific illnesses include cancer, heart attack, Alzheimer, Parkinson etc.
Hospitalization Income Benefit
A type of insurance that covers you in case of being hospitalised. It will pay out a certain amount of money agreed by both parties to ensure a financial support as long as you admit into the medical centre.
Types of Insurance for Malaysia: General Insurance
General Insurance protects the things you valued and loved most such as house, cars and even your personal interest. Most of us get general insurance with the purchase of our first car or motorcycle. Many of us probably know that it is compulsory in Malaysia to buy insurance for the vehicle that you own. The same case applied if you have bought a house with a loan from the bank, the bank will require you to purchase a house owner or fire insurance. General Insurance is mostly paid on a one-time basis. These are some of the policies categorised as General Insurance:
Motor Insurance
Motor or vehicle insurance is an insurance policy that protects the owner of the vehicle against any financial loss arising out of damage or theft of vehicle. In most countries including Malaysia, it is a mandatory for you to keep this insurance. It is a good news for you, because if you drive your car or motorcycle and injured someone by accident, the insurance company will pay for you. You do not need to worry and the other party does not need to worry that you cannot pay, because the insurance company will take care of it.
Fire/ House Owner Insurance
Fire insurance pays for damages to property and other losses you may suffer from a fire. For instance, they will cover up by repairing and replacing the damaged property so that your valuable asset is being taken care of. Besides, your homeowners insurance will also pay for fire damages on the contents of the building and additional living expenses in case you need to stay elsewhere while repairs are made to your home.
Travel Insurance
Some may/may not know the advantages of having travel insurance for your long journey in and outside of the country. Basically, this insurance will protect you for risks such as travel cancellation, delays, medical emergencies, lost and delay of baggage, lost passport and many other travel related risks. So, it is best to know that there’s something keep you secured after you’ve taken a few steps out of the house.
Conclusion
Just so you know, it is a smart move to invest on insurance company for unforeseen events whether it is natural disaster, road accident, illness or death. For further clarification on the types of insurance in Malaysia or anything related to it, do visit our page at https://policystreet.com.
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