If you are planning for your retirement and health in Malaysia, you may want to consider getting insurance that can provide you with financial security and peace of mind. Insurance can help you cover the costs of medical expenses, living expenses, and legacy planning. However, choosing the right insurance for your needs can be challenging, especially with so many options available in the market.

In this blog post, we will share some tips on how to choose the right insurance for retirement and health in Malaysia, and also give some examples of insurance policies that you can consider.

Retirement insurance

Retirement insurance is a type of insurance that can help you achieve your retirement goals by providing you with a regular income stream or a lump sum payout when you reach a certain age. Retirement insurance can also offer protection against death or disability, as well as investment opportunities to grow your savings.

Some of the factors that you should consider when choosing retirement insurance are:

– Your retirement age: You should decide when you want to retire and how long you expect to live after retirement. This will help you determine how much income you will need and how long your coverage should last.
– Your retirement lifestyle: You should have a clear idea of what kind of lifestyle you want to enjoy after retirement, such as where you want to live, what activities you want to do, and what expenses you will have. This will help you estimate how much money you will need to support your desired lifestyle.
– Your risk appetite: You should assess your risk tolerance and investment preferences when choosing retirement insurance. Some retirement insurance plans are more conservative and offer guaranteed returns, while others are more aggressive and offer higher potential returns but also higher risks.

Some examples of retirement insurance plans that are available in Malaysia are:

– Sun Shield Link: This is a customisable protection and investment plan that offers enhanced protection through optional riders, allocation bonus, loyalty booster, no lapse guarantee, extended assurance benefit for expiry up to age 60, 70 and 80, and maturity benefit.
– PRURetirement Growth: This is an investment-linked plan that pays you higher guaranteed returns and allows flexible withdrawals. It also pays you a lump sum of your remaining investment value upon maturity.

Health insurance

Health insurance is a type of insurance that can help you cover the costs of medical treatments and services in case of illness or injury. Health insurance can also offer benefits such as cash allowances, wellness programs, and preventive care.

Some of the factors that you should consider when choosing health insurance are:

– Your health condition: You should evaluate your current health status and medical history, as well as your family history of diseases. This will help you determine how much coverage you need and what kind of benefits you want.
– Your healthcare needs: You should consider your healthcare preferences and expectations, such as where you want to receive treatment, what kind of facilities and doctors you want to access, and how often you need to visit the hospital or clinic. This will help you choose a health insurance plan that suits your needs and budget.
– Your age: You should take into account your age when choosing health insurance, as different age groups may have different health risks and needs. For example, if you are a senior citizen, you may want to look for a health insurance plan that covers elderly-specific conditions and treatments.

Some examples of health insurance plans that are available in Malaysia are:

– PRUSenior Med: This is a medical plan that provides comprehensive coverage for senior citizens up to age 80. It covers healthcare services, inpatient and outpatient treatments, diagnostic tests, prescription drugs, and specialised treatments and procedures with a wide network of healthcare providers.
– Sun Secure Saver-i: This is a flexible contribution payment plan that offers guaranteed death or total and permanent disability (TPD) coverage, additional death or TPD coverage, increasing cash payout, potential upside, maturity benefit, and hassle-free enrolment.

Common mistakes to avoid

When choosing insurance for retirement and health in Malaysia, there are some common mistakes that you should avoid, such as:

– Not planning ahead: You should start planning for your retirement and health as early as possible, as this will give you more time to save and invest for your future needs. You should also review your plan regularly and make adjustments as your circumstances change.
– Not comparing options: You should not settle for the first insurance plan that you come across, as there may be better options available in the market. You should compare different plans based on their features, benefits, costs, and suitability for your needs.
– Not reading the fine print: You should not sign up for an insurance plan without reading and understanding the terms and conditions, as this may lead to misunderstandings and disputes later on. You should pay attention to the exclusions, limitations, deductibles, co-payments, and claim procedures of the plan.
– Not seeking professional advice: You should not rely on your own knowledge or assumptions when choosing insurance for retirement and health in Malaysia, as you may miss out on important details or make wrong decisions. You should seek professional advice from a licensed insurance agent or financial planner who can help you assess your needs and recommend the best plan for you.

Speaking of legacy planning, have you stored your documents in a place where your next of kin or estate manager can access if anything happens to you?

During the pandemic, tragedy struck when Rejina Rahim, co-founder of Wahine Capital and the former MD of Nomura Asset Management Malaysia lost her only sister. She recalls the difficulty of making arrangements after her sister’s passing, from dealing with administrative matters and bureaucratic red tape to the tedious process of retrieving documents for lawyers. “It struck me that, surely there was a better way to tie everything together and make things easier for people who have just lost a loved one,” she says.

Nearly two years later, she co-founded Wahine Capital, a platform that gives users the tools, expertise, and insights to be more financially secure in the face of unexpected life events. In 2022, Wahine Capital launched the beta version of W Vault, a tool that gives users an all-in-one snapshot of their financial status, including their assets and liabilities. W Vault also acts as a digital repository that houses users’ important documents, allowing only users and their authorised accessors the ability to access this information in the case of trigger events like dementia, critical illness, permanent disability, or death.

W Vault is your personal life manager to get started on your first step towards a financially secure future.

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