Insurance can be tricky. It's not like buying miscellaneous items like shirts, groceries or sports equipment. When you buy insurance, you are actually purchasing a promise. It's a legally binding promise that if something unexpected, catastrophic or hazardous happens, you and your loved ones would bounce back to normal financial life quickly. However, its value is often question by many due to lack of awareness, risk perception, and delayed gratification (not getting immediate reward after purchase).
Let's back up and take a big-picture view of why insurance matters. How can insurance be an effective wealth management and life planning tool to help you leap from fear to freedom?
1.) Insurance Provides Financial Stability & Protection
Insurance is a safety net for when risks go wrong. It is common for us to think that "I am still young", "My lifestyle or daily activities won's expose me to danger" or basically "Nothing will happen to me la." Without insurance, individuals, families and even the business, may be financially devastated by unexpected events like accidents, long-term disability, illness, or natural disasters. These risks can be easily transferred via insurance. If you passed away unexpectedly or lost your future earning power due to illness, your parents, spouse, children, or other loved ones would face financial hardship. How can you enjoy your current lifestyle if you can no longer continue to earn? Here is how insurance protect by giving you and your family some much-needed breathing space along with coverage for all expenditure in case of death/accident/medical emergency of the policyholder.
2.) Achieve Retirement Goals
Have you ever thought of how to sustain yourself when after your retirement at the age of 60?
Without working, you will have zero income besides EPF, your savings, and monthly allowances from your children. According to EPF chief strategy officer Nurhisham Hussein, "only 3% of Malaysians can afford to retire". Why not allocate some money to enjoy your retirement years with greater peace of mind. You can even get financial protection against the costs of long-term care (nursing home care or in-home care) with insurance plans that accumulates cash values as a saving tools.
3.) Peace of Mind
Having insurance can provide peace of mind, knowing that you are protected against unexpected events and that you have a safety net in case of a financial loss. In any case of emergency, where you need large sum of money for your medical purpose, recovery stages or funeral costs, you will not need to worry about loaning or borrowing money from people. Malaysia's healthcare benefit costs are expected to rise by 13.8% in 2023, and it will never stop rising due to inflation. You may be young and healthy now, but we don't have any guarantees what will happen the next day. With the right insurance plan, you can remain stress-free from unforeseen risks or sudden financial shocks causing major financial damage.
It is wise to prepare for your future and uncertain events that may happen in life, as early as possible. For further inquiries, contact us to quote for a suitable insurance plan for you with One Stop Solution Advisory. We are strived to empower young adults to be more prepared in facing unforeseen circumstances and transferring risk they could hardly handle.