Five questions to ask before purchasing insurance or takaful

According to a 2005 / 06 survey by the Ministry of Health, it was estimated about 11.6million of Malaysian adults between ages 25 and 64 suffer from at least one non-communicable disease risk factor. 

Statistics like this have driven many Malaysians to take the proactive step of equipping themselves with insurance and takaful plans. Monthly or yearly premiums are paid with the underlying understanding that one is being constantly protected by these insurance policies.

However, how many of us are truly sure about what our insurance covers? While we are educated about the need to protect ourselves, many consumers are not exactly clear about the kind of protection they are getting.

Over time, as lifestyles change and priorities are revised, our original policies may no longer serve our needs. Many Malaysians then forget or are unsure what they are paying for, and this can pose a significant risk to one’s personal finance. 

Hence it is absolutely imperative that consumers know exactly what they are buying (or have bought) and to be prepared with a multitude of questions when considering which packages and policies best suit their need.

1. Total coverage

One of the first questions you should ask your insurance or takaful provider is the value of your coverage. Most plans that provide medical coverage, for example, have an annual coverage value as well as a lifetime coverage value. Find out both of these figures and choose a plan that is most suitable to your lifestyle.

2. Critical illness and multiplicity of critical illness

To get adequate coverage, your policy should cover the 36 critical illnesses commonly offered by many different insurance and takaful companies.

However, there is also another factor that needs to be weighed in, which is multiplicity of critical illness coverage. Many may not realise that critical illness coverage becomes void after the first critical illness claim.

The Malaysian Ministry of Health has ranked the typical critical illnesses suffered by Malaysians, which are coronary heart disease, stroke, diseases of the respiratory system, cancer, diabetes, hypertension, kidney failure, liver failure and infectious diseases like hepatitis A, influenza, and tuberculosis. 

Drawing from the list, it is not uncommon for these illnesses to recur and repeat themselves in a lifetime. To ensure that you have the coverage you need, multiplicity of critical illness coverage is essential.

3. Convenience of claims

It may not be considered a major concern to question the insurance claims process, but when you’re hit by an emergency or crisis, the last thing you want to worry about is administration. 

Having a policy certificate that supports your claims process through measures like providing a medical card and a call centre for required assistance should definitely take priority when reviewing or purchasing insurance/insurance. One might think that these services are a given in most insurance plans, however, there are policies out there that are not equipped with this add-on.

4. Investment links

With the array of insurance products that are available today, as a consumer, you’d want to ensure that you get the best value for the premiums that you pay. One great way to do this is to opt for an insurance or takaful package that incorporates investment elements into its plan, thus giving you the potential of investment returns.

If your current policy does not have such an arrangement, it’s best to switch over to one that does have it. 

5. Cost of premiums/contributions

Are you overpaying for your premiums? Having an insurance or takaful plan is always good news for personal finance, as it minimises your risk should an unforeseeable circumstance occur. Having said that, paying too much for your policy can also pose a risk towards your personal finance. Make sure you conduct apple-to-apple comparisons every now and then to make sure you are getting the best deal from your insurance package.

To sum it up, these questions are an excellent baseline to start at when shopping around for an insurance plan, or even revisiting your current one.

If you’re looking for a good solution to cover all your bases, CIMB SunLink insurance offered by CIMB bank, along with its takaful version SunLink Istimar is one of the more competitive packages in the market today, with extensive customisation options that allow you to build the perfect plan for you and your loved ones.

For example, through the Multiple Pay Critical Illness rider plan, customers are well-protected as it allows up to four claims on different types of critical illnesses. There is also a Policy Owner Waiver rider plan which provides the added protection of waiving all future premiums in the event of diagnosis of any 1 of the 36 critical illnesses, total and permanent disability (TPD), or death of the policy owner.

The plan provides a cashless claims process through its medical card, and extensive lifetime coverage of up to RM2.5mil in hospitalisation and medical benefits – among the highest in the market today.

The protection plan is also a premium/contribution investment-linked plan that offers the additional option of investing in a pool of seven professionally managed funds and allows policyholders to take full advantage of top-up, fund switching and partial withdrawal. 

SunLink Istismar, on the other hand, offers the opportunity to choose from five professionally managed Malaysian Shariah-compliant funds with equal investment flexibility to switch funds up to three times in a certificate year at no charge as well as the flexibility to perform top-ups and withdrawals. 

Underwritten and managed  by Sun Life Malaysia Assurance Berhad/Sun Life Malaysia Takaful Berhad, CIMB SunLink and SunLink istismar offers policy holders all these options and more, starting from just RM200 per month. 

For more information on CIMB SunLink or SunLink istismar click here, walk in to any CIMB branch, or make an appointment via text by sending “SUNLINK” to 62666.