If you’re thinking about getting life, medical, or other insurance but hear lots of conflicting information online, you’re not alone. Some things people commonly believe about insurance simply aren’t true — and they can even prevent you from getting the protection you need. Let’s bust 7 of the most common insurance myths once and for all.
For your benefit, we’re going to debunk 7 insurance myths!
Myth 1 — Insurance Is Too Expensive
Many people think insurance costs too much, especially when comparing premiums to monthly expenses. But insurance doesn’t have to be expensive — and getting it earlier in life generally means lower premiums because you’re younger and healthier. Starting early can provide affordable protection that helps cover future risks like hospitalisation or disability
Myth 2 — Takaful Is Only for Muslims
Some people associate takaful (Islamic insurance) only with Muslim policyholders. However, anyone can take takaful coverage; the difference between takaful and conventional insurance lies in how risk and funds are managed, not who can buy it.
Myth 3 — Takaful and Conventional Insurance Are the Same
Although they serve similar purposes (providing financial protection), takaful and conventional insurance follow different principles. Takaful operates on mutual cooperation and shared risk without certain elements like interest, uncertainty, or gambling — which are avoided under Islamic principles — whereas conventional insurance follows different financial mechanisms.
Myth 4 — Life Insurance Is Not Worth It
Some people believe life insurance only pays out upon death and isn’t worthwhile. In reality, many policies also cover total permanent disability and can replace lost income if you’re unable to work due to serious injury or illness. These benefits mean life insurance can provide financial security long before end‑of‑life situations.
Myth 5 — Buying Insurance Only Benefits Agents
It’s true that agents earn commissions for their work, but policyholders benefit too. Insurance exists to protect you financially when life throws the unexpected at you — such as medical bills or loss of income. A good policy helps you manage risk, not just the agent.
Myth 6 — Medical Insurance Has No Use
Some people think they can rely on government healthcare and skip medical insurance. While public hospitals are affordable, serious treatments and surgeries can still cost thousands of ringgit, particularly in private facilities. A medical card can help you access a wider network of hospitals and avoid large out‑of‑pocket bills.
Myth 7 — It’s Hard to Make Insurance Claims
It can feel intimidating, but making claims isn’t usually complicated. Every insurer has a clear process, and most allow claims in a few steps once you provide the required documentation. If you’re ever unsure, your insurer or agent can assist you through the claims process.
Final Thoughts — Don’t Let Myths Mislead You
Misinformation about insurance can keep people from getting the protection they need. Instead of relying on hearsay, get your facts from reliable sources — and if you’re ever unsure, check with BJAK’s insurance experts. Good information leads to better choices that protect your health and finances.
