If you’re a Malaysian university undergrad, or have a family member currently pursuing their tertiary education, you might think this is totally unnecessary. But allow us to change the whole perspective and all you need to do is open your mind and keep on reading!
Before we go further into the Yes or No answer, it would be best to introduce the types of Life Insurance and Medical Cards we’ve in Malaysia. There are hundreds of products available in the market to choose from, segregated into different categories according to its type, demographic target market, and sum covered. So how would you know which one suit you best?
To illustrate the basic things you need to know about life insurance, it is generally a contract between two parties, the insured, which is the policy holder and the insurer, which is the insurance company. The norm is that the insurance company would pay a specific amount of money to the beneficiaries, usually spouse or family members, upon death of the insured. And in exchange, the insured would pay the insurance company an amount of premium, usually on a monthly basis.
The amount of money paid to the beneficiaries are not usually only upon death of the insured, as some products offer payment upon the insured being diagnosed with critical illness, or the insured being terminally ill and permanently disabled.
Hence, it is important to go through each product that is offered to you, as different products carry different benefits with different premium.
On the other hand, medical card can be described as a physical card issued to you upon purchasing a medical plan from an insurance company. The card allows you access to medical treatment at panel clinics and hospitals, as per listed by the insurance company. Some medical card comes with other benefits, usually hospitalization or surgical and dental expenses cover. Just like life insurance, medical plan or policy comes from different company carries different benefits and with different premium.
Both life insurance and medical cards have their own benefits and it is important for people to own one because we never know when the rainy days are going to come. In the case for university undergrads, both life insurance and medical cards are important, especially if you live far away from home and your family.
Injuries, accidents and illnesses may happen to anyone, and you would not know when it may happen to you. Medical expenses are not cheap, and a normal visit to a GP Clinic could actually cost more than RM100.00 for a normal fever or flu. Imagine your hospital bill if you need to undergo an emergency surgery, it would costs thousands and a family with an average income would not be able to raise thousands of Ringgit in a blink of an eye.
So, you can take it this way, when the student is away from the family, and the parents is not there to take care of them, the insurance serves like a protection that takes care of the student, and makes sure in any emergency, the student is protected and able to receive the best medical treatment. And throughout the whole time the student is away at the campus, both the family and the student are free from any worries.
But can students afford Life Insurance and Medical Cards?
This is rather a stigma than an actual fact. People always think that insurance protection are expensive and they can’t afford one, so they choose to wait until they have a better paying income to purchase one.
If even working adults are thinking twice about Life Insurance and Medical Cards, what about university undergrads? They basically do not have a steady monthly income, and get their money from their student loan or parents. And most of the money they have is prioritized for food and books.
However, fret not. Taking a life insurance or getting a medical card as a student is way cheaper than as a working adult.
Students are generally young adults, between the ages of 18 years old to 25 years old. At this age they’re physically healthy and free from any harmful diseases like diabetes and hypertension. Hence, this is the best time to get insurance protection as the premiums will be lower.
For instance, AXA Malaysia provides AXA eLife Protector+, a life product made for younger people with simple coverage and cheap premium charges, exactly what students need. The product covers death, accidental death and total permanent disability and beneficiaries will be compensated to a maximum of 200% of basic sum insured and death coverage is up to 75 years old. What’s more interesting is that with a minimum basic sum covered of RM50, 000.00, premium charges will be as low as RM4.75 monthly.
Now, who says insurance is expensive? The stigma is largely inaccurate and students can definitely afford life insurance and medical cards. All you need is to have the mind-set that insurance is important and to allocate a portion of your monthly allowance for insurance.
If you stick with the stigma that insurance is expensive, you wouldn’t have thought that students can afford insurance. But now you know actual products with low premiums that you can afford.
Take this medical card product from AXA Malaysia for example. It’s called eMedic, a medical card that offers an annual limit up to RM100, 000.00 with a 5% discount for annual payment, renewable till up to reaching 80 years old with no lifetime limit and payment-free hospital admission. And all this amazing coverage will incur you a premium as low as RM37 per month!
Insane and absurd but if you know where to find the best product, you would be able to enjoy these top notch insurance coverage at a very low price. Some products are designed for the millennials hence registration, quotation, as well as premium payment, are all done via your mobile devices, providing better convenience for the insured. How would you say about spending less than RM5.00 per month for life insurance and less than RM40.00 for a medical card?
Remember, insurance is not expensive. You just need to do your research, compare products and choose the best one that accommodates your needs and affordability!