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5 Types of Health Insurance You Need At Different Life Stages In Malaysia

If there’s one aspect of financial savviness that cannot be ignored, it has got to be the ability to secure yourself and your future. A safety net, one could say. But it’s also arguably one of the most “annoying” facets of financial planning and that is health insurance or takaful.


Not only are these policies an important part of your own financial planning but it’s also paramount in looking out for the well-being of yourself and your loved ones, especially during unforeseen circumstances. As we progress through various life stages, our healthcare needs evolve, making it important to have the right health insurance coverage in place.


In this article, we will explore the five types of health insurance that Malaysians need at different life stages.


health insurance at different life stages and ages in malaysia

Young Adults (Late Teens - Early 30s)


Young adults ranging from late teens to early 30s are advised to get medical insurance. This group of people, often in the early stages of their careers, may have limited savings. This is why medical insurance is crucial as it offers financial protection against unexpected healthcare expenses like coverage for hospitalization, surgeries, and outpatient treatments.


A medical insurance/takaful or medical card, ensures young Malaysians are able to access quality healthcare without the worry of hefty bills. After all, we will never know when we might fall sick, right?


Typically, the average cost of medical insurance in Malaysia can range from RM100 to over RM300 per month, depending on your individual age, health risks and your chosen product's coverage and terms. Generally, the younger you are, the cheaper your policy will be.


Here are some medical insurance/takaful plans you can explore:


Middle-Aged Adults (Mid-30s - Early 50s)


Individuals in their mid-30s to early 50s are encouraged to sign up for critical illness insurance. This is because middle-aged individuals face an increased risk of critical illnesses like cancer and heart disease.


The way critical illness insurance works is that it provides a lump-sum payout upon diagnosis, helping cover medical treatments, debts, and other financial obligations during a challenging time.


On average, critical illness insurance premiums in Malaysia can range from RM500 to RM1,500 per year for a basic coverage plan. However, more comprehensive plans with higher coverage limits and additional benefits may cost more.


Here are some critical illness insurance/takaful plans you can explore:


Pre-retirees and Retirees (Late 50s onwards)


Although relevant for individuals across all age groups, those who are especially nearing retirement or are already retired are encouraged to have a life insurance policy.


A policy like this provides you with a safety net for loved ones, covers debts and final expenses, aids in estate planning and business continuity, and can support legacy and charitable giving even when you have passed on. It can also address health and long-term care needs and offers potential tax benefits.


It’s hard to say what the average cost of life insurance is because it depends on a variety of things like your gender, medical exam, lifestyle preferences and affordability. According to RinggitPlus, it all boils down to: How much are you willing and can you afford to pay and; what your long-term financial needs are.


Here are some life insurance/takaful plans you can explore:


All Ages


Finally, regardless of your age, there are two health insurance/takaful you can consider applying for and that is disability insurance and accident insurance.


Disability insurance is crucial because it safeguards your income if you're unable to work due to a disability or injury. It helps maintain financial stability, covers essential expenses, and prevents the depletion of savings in case of an unexpected disability.


Here’s a list of disability insurance/takaful you can check out:

Meanwhile, accident insurance provides financial protection in case of unexpected accidents, as the name would suggest. Think about it, accidents can happen to anyone, and they usually result in big medical bills, hospitalization, and even long-term disability. So, accident insurance offers a financial safety net, covering these costs and providing peace of mind, ensuring that you have the means to recover without facing a significant financial burden.


Here’s a list of accident insurance/takaful you can check out:


Why I Think Health Insurance Is Important Throughout Different Life Stages In Malaysia


I totally understand why some people find the topic of insurance a bit bothersome. More often than not, it’s linked to annoying agents who relentlessly push policies, use complicated jargon that feels like a foreign language, and the seemingly never-ending paperwork. It's as if the insurance industry has its own secret code that only a select few can decipher.


But here's the thing – behind all that complexity lies a straightforward truth: insurance is about protection. It's about having a safety net when life takes an unexpected turn, a financial shield to safeguard your loved ones, and a means to ensure that your hard-earned dreams are not derailed by unforeseen events.


Personally, from my own experience as a young adult, grappling with the uncertainties of early career life and recognizing the need for medical insurance, to witnessing friends and family in their middle years facing the harsh realities of critical illnesses. And as we approach retirement or embrace it fully, we realize the significance of a life insurance policy that not only protects our loved ones but also reflects our values and commitments.


So, while the process may seem cumbersome, the peace of mind health insurance offers, especially at different life stages in Malaysia is undeniably worth it. It's like having a reliable umbrella in a sudden downpour – you may not appreciate it until you really need it, but when you do, you'll be grateful it's there.


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