Are you a first-time insurance buyer? Or just heard of the thing called insurance and wanted to know more? Wait, we just listed the best types of insurance in Malaysia that everyone should need and have!
If the term insurance is something new for you, and you would like to know more about insurance and the types of insurance products available in Malaysia, we want you to continue reading!
Our experts have made their research, gathered information and data, as well as consider the best features of the types of insurance products in Malaysia.
We have picked the 7 best insurance products from different types of insurance in Malaysia, and we assure you that our selections are going to give you and your entire family comprehensive protection and coverage.
But before we go into the best insurance products in Malaysia, it is best that we explained a bit about insurance, and why it is so important for you.
What is Insurance?
Insurance is basically a contract that is represented by a policy and is usually referred to as an insurance policy. The insurance policy provides financial protection, either to individuals or entities, and the insurance policy would reimburse the policyholder against any damages and losses.
For example, a motor insurance policy provides financial protection against damages and losses for your motor vehicle. This way, if your vehicle is involved in any accidents that causes any damages and losses, the insurance company will be reimbursing the policyholder, which is you, the loss amount you have suffered.
In Malaysia, insurance for the motor vehicle is compulsory, and vehicles without any motor insurance policy are not allowed to be on the road. So, if you are a vehicle owner, you probably are familiar with motor insurance policies.
But, other than motor insurance, there are other types of insurance too. For instance, there is insurance that covers your life, your medical costs, travel inconvenience, and buildings like your house.
In Malaysia, insurance products and insurance companies are highly regulated by the Bank Negara Malaysia (BNM), thus, you don’t have to worry about anything, or be suspicious towards the insurance company when you are buying any types of insurance product.
And in Malaysia, there are also two types of insurance products available in the market. You would have the option of buying a conventional insurance product or a Takaful product.
Takaful is basically an Islamic term for insurance, where the concept and mechanism are according to the Shariah principles. Takaful does not use the concept of selling and buying protection or coverage but uses the concept of mutual risk sharing, where people that buy the Takaful protection enter a contract of mutual risk-sharing among them.
Types of Insurance in Malaysia
So, now that you might have a basic understanding of insurance, we are going to go through the 7 types of best insurance products in Malaysia that everyone should need and have!
Motor Insurance
The motor insurance policy is providing coverage and protection against damages and losses that happen towards your vehicle, as well as third-party liability coverage. The coverage is for your vehicle is necessary in case you are involved in an accident, and your vehicle is suffering damages. While the third-party liability coverage protects in case of an accident, there are third-party bodily injury, death, or third-party property damages happening.
One of the best motor insurance policies in Malaysia is the Motor Comprehensive Insurance from Allianz General Insurance Malaysia Berhad.
The Motor Comprehensive Insurance from Allianz Malaysia is the best because it is providing you with total comprehensive protection.
Main Coverage
- Losses or damages to your motor vehicle due to accident, fire, and theft
- Third Party death and bodily injuries
- Third Party property losses or damages
- Extended benefits
And I think, one of the reasons that this motor insurance product is the best is because it is giving you access to the Allianz Road Rangers benefit. The Allianz Road Rangers is a nationwide motor accident and breakdown assistance. The service comprises 24-hour helpline assistance, the First Response Bike Brigade which provides technical assistance to perform minor roadside repairs, as well as the Allianz tow truck service.
By purchasing the motor insurance policy from Allianz Malaysia, you don’t have to worry about accidents and breakdowns anymore, because Allianz is going to provide you assistance from the moment the incident happened, up until your vehicle can operate like usual and back on the road.
Medical Insurance
You would probably need this insurance product the most. It is very important to have coverage and protection for your medical and health needs because you would never know when you are going to be ill. Being sick, diagnosed with a disease, or get infected by a viral illness are not the things we can forecast earlier, and when things like this happen, it usually happens so quickly.
Thus, it is important to prepare yourself with the right coverage and protection. We recommend the e-Medical Pass Takaful from Etiqa Family Takaful Berhad. It is one of the medical insurances that you can buy online and provides good protection and coverage for your health and medical needs.
Main Coverage
- Covid-19 Cover
- Cashless Hospital Admission
- Accidents and Emergencies
- Outpatient Benefits
- Premium Hospital Rooms Choices
- Unlimited Lifetime Cover
I think one of the reasons why this medical insurance from Etiqa Takaful is so great is because you can just simply buy it online, without any medical screening. The premium is as low as RM1.77 per day, and you go to enjoy the best medical coverage and protection.
Education Insurance
This is insurance that provides coverage and protection for the future of your children. Education insurance is somewhat like a savings plan that will give cash pay-out upon its maturity period, usually when your child reaches 17 years old or 18 years old, thus, able to provide adequate funding for your child’s tertiary education.
This way, you can continue living your life like normal, without having to squeeze any budget just because your child started university education.
You can check out Aspire Insurance from Etiqa Life Insurance Berhad. This is one of the best Education Insurance products that have all the amazing benefits to guarantee a brighter and better future for your children.
Main Coverage and Benefits
- Guaranteed Interim Cash Payout
- Cash Rewards for Academic Excellence
- Coverage for Death, or Total and Permanent Disability (TPD)
- Maturity Benefits
You can start to buy this amazing Education Insurance product as early as your child’s age of 14 days. It is best to start planning for a better future today and make the best changes moving forward.
Through this insurance policy, you can have the assurance that your children’s future is going to be better and brighter. The cost for tertiary education is super high these days, and it is almost impossible to fund your children’s education with your own salary every month.
We understand the struggle and difficulties of the parents when their children are going for university education. Thus, it is best for all parents to plan the future ahead and start to invest in an Education Insurance plan.
Personal Accident Insurance
A Personal Accident Insurance policy, or usually referred to as a PA insurance policy, is an annual type of insurance policy that is providing protection and coverage for injuries, disability, or death caused solely by accidents.
The coverage is annual and renewable every year. With this insurance policy, you are guaranteed protection in any events where you are suffering from injuries, or the accidents you are involved in had caused you disability or death.
For the best Personal Accident Insurance, we recommend AIG MyGUARDIAN PA Online from AIG Malaysia Insurance Berhad. This Personal Accident Insurance from AIG has so many benefits and offers a competitive premium package, as well as available for purchase online.
Main Coverage
- Accidental Death
- Permanent Disablement
- Medical Expenses Due to An Injury
- Daily Hospitalization Income Due to An Injury
- Medical Concierge
AIG offers the AIG MyGUARDIAN PA Online from as low as RM76.00 per year, or equal to RM0.21 per day. With that low price, you can get all-around protection from accidents, with coverage for medical expenses and hospitalization costs. AIG also offers add-on packages including specified infectious diseases coverage like COVID-19.
Personal Accident Insurance is maybe one of the most important insurance coverage you need to have because you will never know when you are going to be in an accident. The coverage and protection are to ensure that your family is going to be okay and well protected, in case you are suffering from any disablement, or the accident caused death.
Travel Insurance
Are you constantly traveling? Whether your travel is by car domestically, or by airplane domestically and internationally, you need to get coverage and protection for your travel journey.
Many did not know the importance of Travel Insurance, and often suffers losses, travel inconvenience during the travel trip. You can actually buy coverage and protection to provide financial reimbursement in the event that you are suffering losses, are involved in an accident, encounter travel inconveniences, as well as providing medical benefits, while you are traveling.
You would usually be given options to set the travel dates and destination, as well as extend the coverage to your travel partners like your spouse, friend, families, parents, or children.
For the best coverage and protection during your travel, we recommend IKHLAS Kembara Plus Takaful from Takaful Ikhlas General Berhad.
This Travel Takaful product from Takaful Ikhlas has the best coverage and benefits and is available for purchase online.
Main Coverage
- Personal Accident Benefit
- Travel Inconveniences – Trip cancellation, curtailment, Baggage & Personal effect, and other related benefits
- Emergency Medical Evacuation
- Personal Liability
The product is available for purchase for an individual from 18 years old to 80 years old. Upon purchasing, you can set the travel date and destination, as well as having the option to choose the limit of the insurance policy.
Now, you can travel with peace of mind as you don’t have to worry about any inconvenience happening during your trip. Either you would need medical treatment, or encounter any trip cancellation, loss of baggage, as well involved in an accident during your time traveling, your insurance policy is going to cover all the costs.
HouseOwner and HouseHolder Insurance
If you are owning a property like a house, or a building, you would need insurance protection and coverage for it too. This insurance policy is going to protect your home so that you can live happily and with peace of mind, knowing that your home and everything in it is well protected.
For the best protection and coverage of your home, we would suggest you get the HouseOwner & HouseHolder Insurance from Allianz General Insurance Malaysia Berhad.
This insurance product from Allianz Malaysia is available for either the house owner or tenant. The protection and coverage are comprehensive.
The Houseowner plan provides coverage and protection for the structure of your house, which includes the walls, roof, fixtures and fittings, garages, gates, fences, and any other item related to the house structure.
While the Householder plan is covering the house content, including the goods, personal items, and other movable items in the house.
Main Coverage
- Fire, lightning, and domestic explosion
- Damages caused by aircraft and impact by vehicles or animals
- Bursting or overflowing of water tanks or pipes
- Theft and burglary
- Flood, hurricane, typhoon, windstorm
- Loss of rent
- Public liability
With the availability of an insurance policy that protects your home, you can focus on building a better life with your family, knowing that anything happening to your home is going to be protected.
Remember, every aspect of your life deserves to be protected and covered with the right insurance product, and this includes your home too.
Life Insurance
A life Insurance policy is an insurance policy that provides the financial facility, or a lump sum payment shall you suffer from total and permanent disability, as well as death, during the period of cover.
This is one of the most important insurance products that you need to have, especially if you have any dependants. For instance, if you are the breadwinner of the family, and the whole family depends on you financially.
In the event that you are encountering any disability which might cause you unable to work anymore, or when you lost your life, you can make sure that your family is well protected and have a promising future.
For the best protection, we recommend the i-Secure Takaful from Etiqa Family Takaful Berhad. This insurance policy is one of the best to protect you and your family and provide a better future in the event of disability or death.
Main Coverage and Benefits
- Death benefit
- Total & Permanent Disability benefit
- Easy and convenient enrolment
- Flexibility coverage
- Extensive Coverage – from 21 years old and up to 75 years old
- Easy Payment – Pay monthly or annually via credit card
- High Sum Coverage – as high as RM500,000
A Life Insurance policy is going to provide your family with the best assurance that everything is going to be okay if anything happens to you.
Frequently Asked Questions (FAQs)
Can I buy any types of insurance online, without having to consult with an insurance agent?
Yes, the insurance agent is only one of the ways to buy insurance. Now, many insurance companies offer online purchases for their insurance products, thus, you are able to search and purchase insurance products via the online platform.
However, only some of the insurance products are available online. Some other insurance products need you to either consult with an insurance agent or go to the insurance company’s branch for purchase.
Can I buy medical insurance for my children?
Yes, you can also include your children to get insurance protection and coverage. It is highly important to get medical coverage for your children, as you will never know when the unfortunate is going to happen.
Some insurance policies can include the entire family, thus covers for your children too. it is best to find such an insurance product, as you can get the entire family protected under the same policy.
Should I include insurance premium payment as part of my expenses?
Yes, it is crucially important to treat insurance premium payment as part of your essential expenses. This is because insurance is highly important, thus, you need to get all the right protection for yourself and your family.
We will never know when the rainy days are going to come, thus, it is best to equip yourself with the best protection and coverage, so that, when you encounter any misfortunate events, you are not going to be affected financially.
Buying Guides
Protection and Coverage
This is the most important aspect to look into when you are considering any types of insurance in Malaysia. The protection that the product is offering needs to be specific and to include all the necessary protection. You can screen through such information from the product disclosure sheet, usually provided on the insurance company’s website.
From the product disclosure sheet, you can get access to the information regarding the insurance product, including the specific items covered under the insurance policy. This way, it is easier for you to make a comparison, and consider which insurance product provides the best protection for you and your family.
Make sure the protection and coverage of the insurance are according to what you desire and will be benefiting you and your family. If you are not sure about the terms and jargon in the product disclosure sheet, you can always call the insurance company’s hotline and ask anything that you are unsure of.
Benefits and Features
Apart from the protection and coverage, it is also important to look into the benefits and features offered under the insurance policy. Some insurance policies come with great benefits for the policyholder, which is amazing and can be an added point for you to consider when purchasing the product.
For example, Allianz Malaysia offers the Allianz Road Rangers benefit for their Motor Insurance policyholder. The Allianz Road Rangers is a great benefit for the policyholder, because anything happening to them is well protected, and they were given assurance that Allianz is going to be with them all the way throughout their misfortune.
Premium
This is another important factor to look into when you are purchasing an insurance product. The premium is paid to the insurance company; thus, it is ideal to look for an insurance product that has an affordable premium, or the premium is within the range of your budget. It is also important to make sure that the protection and coverage provided by the insurance company are worth the premium you pay.
You can make a comparison with other insurance products from other insurance companies, in order to get the best and most competitive premium.
- Convenience
Convenience is another aspect that is also important. In my opinion, convenience in terms of claiming for your losses, as well the convenience when you are able to buy the insurance product online is highly attractive.
It is best to look for an insurance product that you find most convenient, and you are comfortable with, either in terms of dealing during the process of buying the insurance product, or the process of renewing and claiming.
Conclusion
Insurance is highly important to ensure that you and your family are able to live a worry-free life. With the right insurance protection and coverage from the best insurance products, you can have peace of mind, knowing that if anything happens to you or your family, you are not going to be affected financially.
Protect you and your family now! Also, you can share this article “Best Types of Insurance in Malaysia” with them first if your friends who are looking to buy any insurance now.