How To Protect Your Family With Takaful Coverage

You work hard to provide your family with a comfortable living space and enough food on the table. But is it enough? What happens to your family if you are no longer able to provide for them? In these uncertain times, you must take that extra step to give your family the protection they need. Here’s why.

Does your family have a protection gap?

If you are like most Malays, your family may be unprotected. It is the difference between the amount of savings currently available to a family and the amount necessary to maintain its standard of living in the event of the death of its main employee. According to a 2012 report by the Life Insurance Association of Malaysia, the average coverage gap per family (assuming two parents and three children) whose primary employee had no life or medical insurance was RM 723,000. . For major salaried owners with life and medical insurance, the protection gap was still RM 553,000 per family.

More recently, a Department of Health survey indicated that only 22% of the Malaysian population was covered by personal health insurance. Among the B40 group, only 4% have life insurance or a family takaful policy, according to a 2015 report.

But not having any coverage at all can be risky. Without adequate coverage, you will have to pay your family’s medical bills out of pocket. And they can be expensive: A coronary bypass surgery in a public hospital can cost anywhere from RM3,000 to RM5,000 – that doesn’t even include other costs like diagnostic fees or room charges. This spending is increasing every year – this year it is expected to increase by 14% compared to 2019.

On top of that, we are dealing with the COVID-19 pandemic and its economic effects. Since November, Malaysia has faced a new wave of cases. Besides its health risk, the pandemic can also threaten your finances. Almost 90,000 Malaysians have already lost their jobs this year, while 21% reported a negative impact on their income. If you don’t have takaful coverage or insurance and the recession is affecting your income, how would you pay in a medical emergency?

A little effort can help close the gap

One of the best ways to protect your family is to purchase adequate insurance or takaful coverage. Medical takaful can help pay for your medical bills, so you won’t have to rely on your income or savings – or worse, take out a loan – to cover emergency health expenses. It is also comforting to know during this pandemic that your takaful operator will provide additional coverage if you have been diagnosed with COVID-19, which may include additional benefits in the event of death and hospitalization.

Additionally, family takaful coverage can provide a financial safety net for your loved ones. If something happens to you or your ability to earn an income, a takaful plan will provide your family with financial payoff. This can help cover the costs of daily living (through income replacement) until your family gets back on its feet. So how do you get started?

Take advantage of government initiatives

Getting the right coverage has never been easier. When the 2021 budget was tabled, two government measures were put in place to make obtaining takaful and insurance coverage more accessible and affordable:

  • Perlindungan Tenang voucher. Eligible B40 beneficiaries will receive a RM50 voucher to purchase life insurance, family takaful and personal accident products approved under the Perlindungan Tenang program from April 1, 2021. Exemption from stamp duty on these products will also be extended until 2025 (for annual bonuses or contributions of RM100 or less).
  • EPF withdrawal. Members of the Employees Provident Fund (EPF) can withdraw from Account 2 to purchase critical illness insurance and life insurance or family care products approved by the EPF.

This is in addition to an existing tax break on your insurance premiums / takaful contributions: pensionable civil servants can claim up to RM7,000, while non-civil servants can claim up to RM3,000.

Complete financial security and protection of family health

Now that you know how important takaful coverage is, what’s the next step? Buying takaful blanket can be intimidating, as there are so many different plans. Things get a little more confusing too when you have family members who need their own blanket.

This is where AIA PUBLIC Takaful comes in to help you close the protection gap. AIA Total Health A-Plus is a takaful health plan that protects you and your family from escalating medical costs.

  • Comprehensive medical protection. Take care of your medical bills so you can focus on treatment and healing. You will receive up to RM 2 million per year in medical protection, with no lifetime limit. This includes outpatient treatment for serious illnesses such as cancer and kidney dialysis. You can also choose not to be hospitalized and still be covered for conditions such as dengue fever, bronchitis, influenza, and pneumonia.
  • Health portfolio. This first feature on the market rewards you when you don’t make any claims. An amount will be credited to your health wallet which can be used for deductible payments, disease prevention and even a special car. You can use up to RM300 per year for health examinations and vaccinations, giving you better control over your health;
  • Family boost. Extend medical coverage to your spouse and children (up to six family members) under one plan.
  • Personal medical case management (PMCM). Advises you the world’s leading specialists on the best possible treatments throughout your medical journey.

A-Plus Total Health is an endorsement offered by A-Life Ikhtiar, a family plan that gives your loved ones a financial safety net if something unexpected happens to you.

  • Death benefit. Provides your family with a lump sum payment in the form of Hibah upon death. With Hibah, the amount of coverage is not subject to Islamic law of inheritance / inheritance distribution.
  • Coverage in the event of accidental death. 200% of the amount covered will be paid to your family if you die in an accident.
  • Badal hajj benefit. RM5,000 for your family to organize Badal Hajj on your behalf if you pass away.
  • Surplus for charity. Donate any surplus you may receive to charity.

A-Plus Total Health and A-Life Ikhtiar can provide your family with comprehensive medical coverage – from prevention to early detection, treatment and recovery, while ensuring access to the best possible care. Plus, you can adjust the coverage to suit your needs and budget. These plans make it easy and affordable to provide your family with the coverage they need.

Prepare today, for a better tomorrow

Protecting your family financially and medically is as easy as getting adequate coverage, so don’t delay – a little bit of effort is enough, especially in these uncertain times.

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Jothi Venkat

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