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Life or Money, which one matters most?

Photo by Free-Photos on Pixabay

Congratulations, you graduated! You’ve leveled up!

Welcome to your ultimate destination, also your next dimension: the WORKING world! It’s the beginning of you stepping into your "real world" journey. Your life is no longer being controlled and the most important thing now is for you to take care of yourself and be independent.

Insurance, a topic that most young adults are unaware of or seldom talk about. Some don’t even realise how insurance can affect our lives for the better.

Photo by Gerd Altmann on Pixabay

If you didn’t know, insurance is an essential protection tool that ensures your financial security if something bad were to happen. It provides compensation for a person if they end up being involved in an unfortunate event. In many ways, insurance can ease your financial burden, especially for your loved ones!

Some of us might have thought of buying insurance but is unsure of how the procedure would work. The first thing that rings to your mind is “How do I get insurance in the first place?”. For starters, you can approach an insurance agent which you can access from the official website of an insurance company or from an acquaintance. The insurance company will then assess your risks before providing you with a selection of policies to apply for. These policies will have several terms on what can be insured and what cannot.

For example, if you were to buy a health insurance for yourself, it does not mean that all illnesses you experienced can be covered by the company. Conditions or sicknesses you experience prior before applying for the policy might not be covered by the insurance company as it is considered to be a pre-existing condition.

It all depends on the insurance company you choose and the policy you apply for as it states what is excluded from the coverage and what is not so remember to choose an insurance to your liking and apply wisely.

Therefore, here are several different forms of insurance that I will suggest you find out more about. Let me first talk about personal accident insurance, also known as PA insurance.

PA insurance gives you personal protection that will help cover your medical expenses, disabilities or death that may result from an unexpected event.

Let’s just say you get bitten by a wild dog, you don’t have to worry because you are insured. Your financial burden of paying the medical bills will be reduced by a huge amount in comparison with not having insurance at all. Therefore, PA insurance is definitely one to not miss when applying for a list of insurances.

Now, instead of only focusing on accidents that may happen on our own time, why not talk about accidents that happen regularly on the road? As we all know, Malaysia is filled with traffic congestions. Accidents can happen anytime and anywhere. Road accidents, in particular, are most common among young adults, so why not take a few minutes to learn about auto insurance?

If you get into a car accident, auto insurance will help you pay for covered losses.

Photo by Marcel Langthim on Pixabay

For instance, if the accident is yours to blame, auto insurance helps cover the other party's medical bills and damages made to their vehicle or other property involved in the accident such as the fence of someone's house. Being a college student, you won’t have to worry about your financial status when getting into an accident on the road as the auto insurance you apply for will settle it for you.

What has been said so far are examples and instances to explain the use of each insurance. The question now is, what if you do encounter an accident and you need to apply for a claim? How do you go about it? Call the agent that you have been in contact with when signing up for your insurance to get about the paperwork that needs to be done. Need more information on the guidelines for a claim? Find out more here!

In addition, did you know that companies automatically insure their employees? For those who are working, have you ever wondered why is there always a deduction on your monthly salary? No worries, the deductions are actually beneficial for you. Companies automatically deduct the insurance amount from your monthly salary in order to ensure your wellbeing is secured.

The first on the list is your Social Security Organization (SOCSO), also known as PERKESO. You might see this abbreviation when taking a look at your monthly salary payslip. SOCSO deducts a small percentage from your monthly salary to help cover any injuries or accidents that might happen during working hours. However, not to worry as your employer will contribute a certain percentage to your SOCSO as well.

Employment Insurance Scheme (EIS) is also another compulsory payment for every employee. It provides temporary financial assistance for those who were fired or have lost their jobs and makes sure they will be financially stable in the midst of finding new employment.

As you can see, insurance seems like a necessity and is prevalent in many aspects of your life. Unfortunately, there is still a false understanding that insurance is only for those who are older and more vulnerable to illnesses.

Young Adult: I am young and healthy. I don't need insurance.

The Fact of the Matter: Yes, it is true that we are still young and healthy. However, what if you end up being involved in an accident or are diagnosed with any illness? Will you be able to afford the payments?

Applying for insurance is not as easy as it may sound. You have to consider the policy that you are signing up for because there is a wide range of selection. Keep in mind to thoroughly read through the T&C to know what is covered and what is not. By doing so, you will have a better idea on whichever policy that best suits you. However, it is most important to realize that the benefits of acquiring a proper insurance plan may greatly outweigh the difficulties of looking for the right insurance plan for you. With that being said, don’t you think insurance should be a must in your financial planning?

Why do you need a torch?

Just in case of a blackout.

Why do you keep a spare tire?

Just in case the tire goes flat.

So, why do you need insurance?

Just in case something happens to you.

By: Weng Yan


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