Malaysians, and everyone else, know very little about how insurance works. Most people might just typically Google the phrases ‘critical illness insurance Malaysia’, ‘cheap health insurance in Malaysia’, or even ‘where to buy cancer insurance in Malaysia’. I mean, sure, you could read and learning about buying cancer insurance in Malaysia on our PolicyStreet website, or even examine what on Earth the phrase ‘Manulife Term-Life Insurance’ actually means. But truth be told, most people who buy insurance actually do not know what they are covered for, or why they’re buying it in the first place.
The Role Of Policystreet In Insurance
This is where PolicyStreet comes in to fill this gap in terms of what Malaysians know about life insurance from Manulife, or cancer insurance from AXA, or pet insurance by MSIG, or even sports insurance by Lonpac – all of them insurance companies in Malaysia.
What are we covered by if they buy cancer insurance online in Malaysia? What did our parents really buy when they bought personal accident insurance from a Malaysian agent?
PolicyStreet aims to cover all these questions in this article.
What Is Insurance? Can I Buy Insurance Online In Malaysia?
Some people see it as a way to financially plan their future, and others see it as a way for salespeople to make lots of money and go on special company trips even if they did not educate their customers well enough.
While we at PolicyStreet aim to be the leading insurance marketplace in Malaysia, we would like to educate anyone who is willing to learn a little more about insurance than the average layman.
And yes. You can buy insurance online in Malaysia on the PolicyStreet website.
The essence of any type of insurance is that if you pay a small amount of money to the insurance company regularly, the company will give you access to a large amount of money if you need it.
But the fact is, you might not even need it. And it is in that way that insurance can come off looking like a casino, or that place where the uncles go to get their Toto scratch cards to win some money. They pay a small amount of money for the small possibility of winning a larger amount.
Neither you nor the insurance company will know for sure if you will ever claim a large amount of money from them because no one can predict health, lifestyle, or financial catastrophes.
And it may seem ludicrous trying to figure out why or how insurance companies can actually earn profit. I give you (insurance company) so little, but you give me so much wor!
How to earn money like that weh?
How Insurance Works In Malaysia
Insurance works on the basis of size. That amount of money that you give, that small amount of money, if you get A LOT A LOT A LOT A LOT A LOT of people to buy insurance too, then it will be a BIG pool of money.
That pool of money won’t go away very easily too. That is because of the tiny probability that a financial catastrophe will actually happen to anyone in that pool.
Insurance companies and the actuaries (they’re the ones who estimate the probability of paying out) are actuary (ha ha ha) very good at balancing the chances of someone claiming from an insurance company, and coming up with how small an amount an individual should pay!
And still earn a profit!
Why would anyone than in Malaysia buy insurance if it comes off smelling like a rigged system then? What is the catch?
Because it’s a good way to financially plan your future.
Insurance And Financial Planning In Malaysia
A lot can be said about financial planning. But the word ‘plan’ has a lot of negative connotations whenever it comes to selling, and mis-selling.
AIA Malaysia’s insurance agents are called Life Planners.
When people ask you to buy stocks, bonds, or unit trusts, they say you are planning for your future when in fact they are looking for the commission.
Or even, when you want to buy a property, property wealth planners will aggressively persuade you to get into debt in order to secure your position for a property.
These examples should not dissuade you from the true comfort financial planning can bring you however. Everyone knows that if you save money in your savings account, put some of those into a fixed deposit, or even invest a comfortable amount of money in a risky unit trust, that can be considered planning.
The true essence of insurance in your part of financial planning, however, is counterintuitive.
Most of the time, financial planning is related to investing. You put some money, in order to get more of that money in the future.
Insurance Is Sort Of Like Investing
Insurance is weird in this sense. You put some money in an insurance policy, but you don’t get more of it in the future.
The beauty of insurance, however, is that you’re paying for the luxury of not paying more in the future.
Take medical cards a.k.a health insurance for instance. You pay RM2,400 a year (this is considered quite high for Malaysian medical cards), so that if you get sick within the year, you do not have to fork out money for any medical treatments you require.
The more you pay a year, the more coverage and benefits you can get. And there is a limit, most of the time.
You see what I mean? You pay money, but you don’t get money back as if with normal investing does.
But what you get to do is plan your budget for the whole year, so that if you are aiming to save money, insurance can make sure you do not spend more than what you budgeted.
Because you already paid insurance companies, to pay on behalf of you!
And the only catch with buying insurance in Malaysia, as with everywhere else, is that you may not actually be able to claim – if you don’t get sick, or get into an accident (which is a good thing right!)
This is how buying insurance can give you access to RM60,000. It does not actually give you access straightforwardly, but it is there if and only if you need it.
It’s not like buying unit trusts from Great Eastern, or buying blue chip stocks from Kenanga, or investing your savings in a fixed deposits account with Hong Leong.
It’s buying the comfort of having an insurance company, be it Allianz, AXA, or Manulife, to pay for whatever accidents, mishaps, or mistakes you might make in the future.
Now that we are in the topic of the best product should you wish to buy cancer insurance, PolicyStreet has just launched Malaysia’s first and only online cancer insurance, AXA 200 CancerCare underwritten by AXA Affin Life Insurance Berhad, on our platform.
The fact of cancer being ranked as the top critical illness claim in Malaysia, and 1 in 4 Malaysians are at risk of developing cancer motivated both PolicyStreet and AXA to close this significant protection gap with AXA 200 CancerCare, which gives you immediate access to a great sum of money, (in fact RM60,000 at minimum!) should you ever need it direly.
Look no further than PolicyStreet should you wish to buy cancer insurance, experience an easy to understand, insurance jargon-free explanation of AXA 200 CancerCare and get yourself protected for only RM45/month today, with no sweat!