Question

Reason why Malaysian are under-insured. At least 5 examples (40m)

Answer 1

Solution:

Complicated and detailed process

In Malaysia, purchasing a life insurance policy cannot be taken lightly, because an individual has to compare prices of different policies, do detail and proper research and understand before signing the documents. An individual has to meet up with different agents from different insurance companies, compare the policy and premium, before deciding on one. Then have to wait for the company to process the application before receiving the policy, which takes more than one week. These can be a burden and demotivating for many individuals, resulting in people avoiding their purchase.

Expensive

In Malaysia, motor insurance is mandatory, life insurance is not compulsory for Malaysians. Life insurance is often pushed to the bottom of the priority list when most of the people are salaried and are living cut to cut in their daily life. Like any insurance, life insurance is purchased as a normal protection and can be purchased on its own that makes it seem expensive.

People always believe that they are young

Common excuses people use to delay getting the protection that they need. This does not mean that death or even permanent disability is not possible. Accidents happen every day, and it is often unpredictable. Booking for life insurance at a younger age is very affordable actually as it comes in cheap, compared to doing at a older age which may lead to more complications and expensive.

No Dependents

Without an adequate life insurance, an individual's death can have a negative impact on their family members financially. No savings and post expenses can leave a burden on family members. If someone have other debts, their close family members will also be liable pay. An individual may not be single for ever. One day, He/She will start a family with children, and by waiting until then to get life insurance, may see a big jump in premium.

Policy understanding is difficult

Everyone does not enjoy reading an insurance policy. It is a complex contract that explains all the things they will be covered for, and all the things that are not covered when a loss occurs.