In this post, I will be sharing my view on why are many Malaysian still without insurance policies.
How many of us have more than one insurance policy? I think not many. In fact, there are many Malaysian who is currently without any insurance coverage.
This is a very sad situation.
Why are many Malaysian still without insurance policy?
So, why many Malaysian are still without insurance policies?
I shared the possible reasons below:
1. Low financial literacy
I think among the reasons why there are many uninsured Malaysian is because of low financial literacy.
Due to this, they are not aware of the importance of insurance in their financial planning. As a result, insurance is always not on their important list.
In most cases, they only realized the importance of getting an insurance policy when something unfavourable happened to someone closed.
Such as a serious health problem or an accident.
Generally, improved financial literacy will be able to guide these people to get an insurance policy as early as possible.
And not to wait till something happened. In which by that time, it might be too late.
2. Inadequate fund
The second reason I can think of is an inadequate fund.
Life as an average Malaysian can be quite tough financially. After taking care of the housing loan, car loan, monthly utility bills, daily necessities and other basic needs, most of the time, not much money are left.
So, insurance protection is always left behind.
By right, they have to reallocate their budget or spending plan. That is trying to adjust somewhere so that they can squeeze in a basic policy. Especially for the bread earner of the family.
3. Bad experience with the insurance agent
The third reason why are many Malaysian still uninsured is a bad experience with the insurance agent.
My own brother had a bad experience with his previous insurance agent.
When he signed up, he was told that he only needs to pay his insurance premium for a number of years. Then his policy will be active and he will be protected.
Many years later, he found out his cash value is not sufficient to cover his monthly premium anymore. He was quite angry and try to contact his insurance agent.
But he was informed the agent is no longer an active agent.
I told my brother that parts of the problem come from him because he didn’t try to understand the policy that he signed. And he relied too much on the insurance agent.
The other part of the problem is because of unreliable insurance agents providing misleading information.
In short, these insurance agents are only interested to close the sale and thinking of their monthly commission.
4. Poor service by the irresponsible insurance agent
The last reason which I can think of is also related to the insurance agent.
Some of the insurance agents are not proposing the policy according to the needs of their clients.
Instead, they proposed based on their own needs for high commission. As a result, the clients cannot afford to sign for a policy.
Some may wish to get a policy but are not able to pay the high monthly premium.
A good insurance agent will try to understand his client’s situation and needs before submitting his proposals.
By right, he should propose a policy with the lowest premium but highest protection.
I believe there’s always a good policy which is suitable for each person accordingly to his age, lifestyle and financial needs.
So, try to get a good and reliable insurance agent for your best insurance coverage experience.
Final thoughts
Insurance coverage is among the most important things in personal finance.
It is just that many are still not aware of the importance of insurance as protection.
Hopefully my sharing above on why many Malaysian are still without insurance coverage able to provide you with some insight.
Feel free to share your view if you have other reasons why many Malaysian are still without insurance coverage.
Special Notes
At the time of writing, I am not an insurance agent. I just feel that I need to share my views on this issue.
Hopefully, I can open the minds of those who have not been insured, to start gathering more information on the insurance policy.
And most importantly, to try to get insurance coverage for themselves and for their families.
Also, I hope that there will be more professional and reliable insurance agents out there to better serve all Malaysians.
Read more: Important life decisions that could affect you financially
photo credit: h.koppdelaney via photopincc
