Written by Stephanie Goh

Many of us have probably gone through this experience or at least know someone who has. A friend you haven’t spoken to in a long time messages you out of the blue and invites you for a mamak session. You go thinking it will be nice to catch up with an old friend but just fifteen minutes in and they’re trying to sell insurance plans to you. To be nice, you probably half-heartedly listen and tell them you’ll think about it, even if you don’t. 

Insurance is often viewed as an unnecessary expense with many wondering what exactly they are paying for. In reality, insurance is crucial in safeguarding your assets, protecting you in times of need, and giving you peace of mind. There are various types of insurance available that you should look into based on your needs. Here’s a quick breakdown of what you need to know. Full disclaimer, I am not an insurance agent or affiliated with any, I just believe that everyone needs insurance.

Medical Insurance

Medical insurance is one of the most commonly known plans and is essential for covering hospitalisation, surgery, treatments, medical tests, and prescription medications. Beyond just covering your expenses, it also allows you to go to more reputable hospitals, clinics, and doctors as most insurance providers will have a panel of hospitals and healthcare centres that you can choose from. Having medical insurance allowed me to consult a specialist at a private hospital when I needed to without worrying about the financial burden.

Life Insurance

This is one that most people might not consider to be important because it’s not meant to benefit the insured. Instead, it provides a safety net for your loved ones in the unfortunate event of your passing. The beneficiaries will receive a sum of money that can be used to cover funeral expenses, outstanding bills, or to clear their debts. It offers you the peace of mind of knowing that your family won’t need to worry about money during a difficult time. 

Home Insurance

Home insurance is often underestimated but plays a crucial role in protecting your home and belongings. It gives you coverage in the case of natural disasters, damage to the home, break-ins, and more. I have a friend whose house caught fire due to a circuiting problem in their solar panels. Thanks to home insurance, they avoided paying approximately RM150,000 out of pocket for repairs.

Vehicle Insurance

In Malaysia, it is a legal requirement for all vehicle owners to have insurance coverage regardless of whether they own a car, motorbike, van, or others. Vehicle insurance is primarily to cover the cost of repairs in the event of accidents whether you caused it or were just involved. For example, someone I know was recently in an accident involving four cars. The responsible driver was able to pay for all the repairs through their insurance, saving themself a considerable amount of money. Imagine paying for the repairs of four cars!

Travel Insurance

Last on the list is travel insurance which gives you a safety net for your trips. It provides coverage in the event of lost luggage, last-minute cancellations, medical expenses while abroad, and more. I know that many of us usually skip travel insurance for those shorter trips, especially since you don’t receive anything if no claims are made, but it really can save you a lot of headaches in unfortunate circumstances. 

Consider your options today!

We live in a world where anything can happen and nothing but death (and taxes) is guaranteed. Insurance is an important financial tool to give you peace of mind and assurance for your financial well-being. I know that some of you might have trouble finding the money needed to pay the premium which is why I strongly suggest looking for a plan that works for you. By considering your specific needs and capabilities, you can invest in the right insurance policy without breaking the bank. There are many insurance providers available who would be happy to have a consultation session with you. Maybe you can even get a mamak session with it.