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7 Insurance Myths You Shouldn’t Believe

    If you’re thinking of buying insurance but have a vague idea of what each insurance means, the Internet is a good place to start. But check your sources so you don’t get misled by insurance myths!

    The Internet is a great place to learn about insurance. But take every information with a pinch of salt. Beware of these insurance myths.

    For your benefit, we’re going to debunk 7 insurance myths!

    1. Insurance is expensive

    You can actually get insurance at a much lower premium when you get it early. And the small amount you pay regularly is honestly peanuts compared to ever-increasing medical costs! For your information, the treatment cost for cancer which is one of the most common critical illnesses in Malaysia ranged from RM18,000 to RM300,000! That was in 2019. The cost could be way higher now. If you’re insured, you don’t have to worry about the rising medical costs.

    To learn about three important insurance types you should have, click here.

    2. Takaful is only for Muslims

    Don’t judge insurance by its Arabic name!

    Contrary to popular belief, both Muslims and non-Muslims can get takaful which also provides coverage like insurance. However, the major difference is takaful is based on the Islamic concept. It is based on mutual cooperation where both risks and funds are shared between the insured and the insurer.

    3. Takaful is the same as conventional insurance 

    There’s a reason why they have different names…

    Both options share the same purpose of providing coverage, but takaful is free from these 3 key elements:

    1. Riba (interest)
    2. Gharar (uncertainty)
    3. Maysir (gambling)

    4. Life insurance is not worth it

    Life insurance is in place to protect you and your loved ones.

    You may think that you won’t get anything out of your life insurance other than a lump sum payout to your beneficiaries after you die. But did you know that most life insurance plans today include coverage for total permanent disability? What does this mean to you?

    It means that your insurance will pay out a lump sum to you or your beneficiaries, should you lose a pair of limbs or eyesight and become unable to earn. The payout can replace your income should you become permanently disabled and lose your income.

    5. Buying insurance only benefits the agents

    For the work that they do, it’s only fair for the agents to gain commissions.

    But as the policyholder, you, too, enjoy the benefit in the form of health and financial protection. For example, when you have medical insurance, your insurance will cover your medical expenses so you won’t have to pay for your hospitalization and medical bills out of your own pocket.

    6. There’s no use getting medical insurance.

    I can go to any government hospital and just pay a few Ringgit

    Indeed, you’re charged only RM1.00 for outpatient treatment at a government hospital. But if you need to undergo surgery, there’s still an amount that you have to pay, and it may go up to thousands of Ringgit.

    When you’re insured, you have the option to seek treatment at a private hospital without worrying about paying for the treatment. Your medical insurance will take care of your medical bills.

    Learn about medical insurance here.

    7. It’s so hard to make insurance claims

    Like almost everything else, there’s a procedure that we have to follow when making insurance claims.

    You can actually make insurance claims in just 4 easy steps. But if you ever need help with your claims, straight away contact your insurer for assistance.

    Get informed so you don’t get misled by insurance myths, no matter how appealing they may sound.

    If you’re not sure whether the insurance information you find online is a myth or fact, check the sources and make sure they’re reliable. You can also holla our insurance experts at Bjak to fact-check!

    (Sources: Hospital Kuala Lumpur, iMoney, Institute of Islamic Banking and Insurance)