{"id":46238,"date":"2020-12-21T09:59:42","date_gmt":"2020-12-21T01:59:42","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=46238"},"modified":"2021-02-04T09:56:59","modified_gmt":"2021-02-04T01:56:59","slug":"aia-family-takaful-plan","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/aia-family-takaful-plan","title":{"rendered":"When It Comes To Your Family’s Future, A Little Effort Goes A Long Way"},"content":{"rendered":"

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You work hard to give your family a comfortable living space and enough food on the table. But is that enough? What happens to your family if you are no longer able to provide for them? During these uncertain times, you need to take the extra step to give your family the protection they need. Here\u2019s why.<\/p>\n

<\/span>Does your family have a protection gap?<\/span><\/h2>\n

If you\u2019re like most Malaysians, your family may have a protection gap. This refers to the difference between how much savings a family currently has and the amount needed to maintain their standard of living if their primary wage earner passes away. According to a 2012 report<\/a> by the Life Insurance Association of Malaysia, the average protection gap per family (assuming two parents and three children) whose primary wage earner had no life or medical insurance was RM723,000. For primary wage owners with life and medical insurance, the protection gap was still RM553,000 per family.<\/p>\n

More recently, a Ministry of Health survey<\/a> reported that only 22% of the Malaysian population is covered by personal health insurance. Among the B40 group, only 4% have some form of life insurance or family takaful policy, according to a report in 2015<\/a>.<\/p>\n

But not having coverage at all can be risky. Without adequate coverage, you\u2019ll have to pay for your family\u2019s medical expenses out of your own pocket. And they can be expensive: a coronary bypass surgery at a government hospital can cost<\/a> between RM3,000 to RM5,000 \u2013 this doesn\u2019t even include other costs such as diagnostic fees or room charges. These expenses increase every year \u2013 this year, it\u2019s expected to rise 14%<\/a> from 2019.<\/p>\n

On top of that, we\u2019re dealing with the COVID-19 pandemic and its economic effects. As of November, Malaysia faces a new wave of cases. Besides its health risk, the pandemic can also threaten your finances. Nearly 90,000<\/a> Malaysians have already lost their jobs this year, while 21% reported<\/a> a negative impact on their income. If you don\u2019t have takaful or insurance coverage, and the recession affects your income, how would you pay for a medical emergency?<\/p>\n

<\/span>A little effort can help close the gap<\/span><\/h2>\n

One of the best ways to protect your family is to get adequate insurance or takaful coverage. Medical takaful can help pay for your medical costs, so you won\u2019t have to rely on your income or savings \u2013 or worse, take out a loan \u2013 to cover emergency health expenses. It\u2019s also comforting to know during this pandemic that your takaful operator will provide extra coverage<\/a> if you have been diagnosed with COVID-19 which may include additional death and hospitalisation benefits.<\/p>\n

In addition, family takaful coverage can provide a financial safety net for your loved ones. Should anything happen to you or your ability to earn an income, a takaful plan will give your family a financial payout. This can help cover everyday living costs (through income replacement) until your family gets back on their feet again. So, how do you begin?<\/p>\n

<\/span>Take advantage of government initiatives<\/span><\/h2>\n

Getting adequate coverage has never been easier. During the tabling of Budget 2021, two government measures were introduced to make getting takaful and insurance coverage more accessible and affordable:<\/p>\n