the three insurance that you must have 2021
thinking about buying insurance but not sure what to buy read this article to find out what are the three insurance that you must have and why you need them.
here we are all about learning about finance in a fun way so if you like that click the subscribe button and turn on the notification to follow us for the latest video also do follow us on facebook and instagram for the latest update and activity insurance is one topic that we cannot avoid but many are scared of dealing with the complex product structure can be very confusing and the scary agents who keep trying to sell you more policies has lead to quite a stereotype in the market with all these factors
insurance planning often makes people feel terrified and something that they want to avoid dealing with all together but unfortunately avoiding dealing with it doesn't mean that you don't need it for most
of us insurance planning is a need to provide us with financial security so here are the three kind of insurance that you must have for your insurance planning the first and most important insurance that you must have is medical insurance some people call it medical card health insurance or medical insurance basically it means the same thing the function of these insurance is to pay for your medical treatment expenses when you have a health issue or when you are injured in an accident medical insurance is important because when you get sick or you are injured you need medical treatment to recover and there's pretty much no other choice other than that right well anyway as long as you can get treated and recover from your illness there is always a hope for future nonetheless some would say that why should you get a medical insurance i have company insurance and even if that fails there's always government hospital if you have a company insurance that's a good thing but remember the goal of a company providing you with medical insurance is so that you can get the necessary treatment and come back to work so what if you don't want to come back to work or you can't come back to work for a long time even after receiving your treatment will you still be covered under medical insurance by the company if the doctor tells you that you will never be able to go back to work usually here is where you need to discuss with your company and there's no guarantee that your company will renew the insurance for you and if you don't have your own private medical card the only option is to pay yourself for whatever treatment that occurs another option is to go to the government hospital the truth is malaysia have one of the best healthcare facilities in the world and as a citizen a healthcare cost in government hospital is subsidized in government hospital today the consultation fees and procedures are heavily subsidised by government so you only bear a little cost on that but when it comes to medicine and some expensive medical instruments that are specific to your illness you will likely need to bear the cost for it and that can be rather costly even though it's much cheaper than private hospital charges so you will still need to pay out secondly because there are many cases in the government hospital the queue is long for any procedure for example i've known of a case where a friend of mine had a heart attack and was admitted into a government hospital after diagnosis the doctor told the family that he has four blockages and will need a heart surgery as soon as possible a bypass surgery any attack within this period of time can potentially bring death to him so they schedule him for heart surgery for bypass surgery but the queue is around six months long and if anything happens it's gonna be really dangerous another choice is that he can transfer himself to a private hospital and they can schedule him for surgery within the next week but that would cost him around 50 000 ringgit what do you think was his decision and his family's decision so in my opinion medical insurance is a must at the end of day we want to get the necessary treatment and recover as soon as possible to get back to our normal lives and having a medical card to guarantee the payment of our medical expenses is the utmost important without health there's no wealth for medical insurance the most important thing that you want to look out for is the yearly medical expenses limit this means how much of medical expenses can you claim in a year
secondly are there any special exclusion or claim limit for certain illness so take note of that when you choose for a medical insurance the second insurance that is a must is critical illness insurance it is an insurance policy that typically pays out a lump sum that is agreed upon when a policyholder is diagnosed with a dreaded illness there are multiple critical illnesses that are covered under these policies such as cancer heart attack stroke both kidney failure and so on as you can see it's life-changing diseases that are dreaded it is not the usual flow of allergy so why is this insurance a must because when anyone is diagnosed with critical illness there's a chance of deteriorating health and they definitely need rest resting and focusing on recovery could mean that you need to take a break from work if you took unpaid leave or you're running your own business and you can't generate income you still need to pay for your daily expenses food transportation housing bill bank loans try calling a bank and tell them that you can't afford the house installment because you're taking a break from work due to health issues let's see what the bank says i believe that you would not want to bring any trouble to your family or friends by asking for financial help because you can't work right the loss of independence and dignity sometimes can feel even worse than the illness itself so it's important that you have critical illness insurance that can cover your living expenses if touchwood you are diagnosed with a critical illness for critical illness it's important to have a payout amount that can at least replace three years of your annual income this means that if you are diagnosed with critical illness you can likely take a break from work for three years to focus on nursing your health back to normal without financial worries and finally the last insurance that you must have is life insurance life insurance pays out a lump sum of cash to the policy holder if there's a death or total permanent disability death right and total permanent disability simply means you lose the ability to use a pair of limb or your eyesight this means this ability above your wrist or for leg above the ankle and a pair of it whether it's two hand or two leg or a mix of fish or the loss of eyesight completely so why is this important well because dying is not cheap if you're single you still need to pay for some hospital bills and funeral expenses i like to tell people this don't financially trouble the people around you even when you die leave some fond memories man so get at
least 50 thousands of life insurance to cover your own funeral expenses however if you have a family other than the above mentioned you probably have a responsibility to take care of your family financially even after your death or at least don't leave your family with a bunch of debts so how much of life insurance is enough ideally it's by calculating your yearly expenses and have 10 times that amount as your payout for life insurance so why 10 times if your admiral expenses is 100 000 then you need 1 million theoretically with 1 million your family can simply invest that 1 million ringgit wisely and receive a regular income of seven percent or ten percent and that would mean a seventy thousand to hundred thousand income per year for them to take care of their lifestyle as long as they need so the three insurance that is a must-have i believe is medical insurance criticalness insurance and life insurance other than that other plans like saving plans and whatnot are good to have but not a must-have do you think the same or do you have other thoughts share us through the comments below thank you very much for joining us i'll see you next time