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Insurance: A Waste of Money? Think again.

When it comes to insurance, most people share the same misconception that it is an unnecessary expenditure because they fail to see its value. To some people, insurance is useless as they haven’t utilized it at all after months and years of paying. It’s a form of “investment” that they do not see or have yet to see the returns. Hence, they would rather cut it off and allocate the money for other purposes. At the end of the day, the money will be spent on things that they might not even remember.

With a healthy body, diseases won’t come to me. On a usual day, accidents can’t happen. What could go wrong with me? People often lack the foresight and experience to comprehend how serious it is when unfortunate events happen.

Here are three consequences that will happen without insurance coverage.

1. The medical cost could empty your bank savings account

How many months and years have you taken to achieve the amount you save in your bank account? If you’re going to empty it for your medical bills someday, what’s left? 

Private medical cost in Malaysia is increasing by the year. Realistically, to enjoy better and faster medical treatment provided by advanced equipment, it costs money. The cost of not getting insurance is often higher whenever something goes awry. To give you a better picture, let’s run through some simple math.

Based on the estimated price of private hospitals in Petaling Jaya, upon admission, a total of RM10,000 of the deposit is required. The cost of a normal ward ranges from RM95 to RM380 a night depending on the number of patients sharing a room and the type of room. As for the treatment? It can be as low as RM3,000 or up to RM48,000 – depending on the types of treatment and surgery.

How about other miscellaneous fees and post-hospitalisation check-ups and treatments? Or what if you’re deemed immobile or unfit for work after a serious bout of illness? Are you prepared to go jobless uninsured? As much as it hurts to even write about it, the dangers of being uninsured when you need funds the most is even more alarming.

2. Your financial burden and debt increases

Losing a huge amount of money is a pain. But getting in debt doubles the agony even more. When the money you have is insufficient to cover the expensive medical bill or you find your bank account in the red during and/or after hospitalization, you may need to stretch your hand to borrow from friends and family or even the bank. With banks or other credit services, just as interest rates from investments snowball due to compounding effect, so does your debt.

Always protect your wealth to ensure that your assets will grow over time instead of deteriorating. In this case, emptying your savings account on unprecedented bills is something that could have been avoided – should be avoided.

3. Treatment delayed

How do you feel when you find out you’re diagnosed with a serious disease and the price is too heavy to pay? You may hesitate or take the risk to try alternative treatment methods at a lower price which doesn’t guarantee positive results. Why risk to delay your treatment due to financial difficulty?

With insurance coverage, you’re required to pay almost nothing for top-notch treatment to speed up your recovery and enjoy hospital facilities without concerning the price at all. No, insurance is not the only thing you buy; you are also buying a sense of security and peace of mind knowing that you and your family will be protected financially, physically, and even mentally. When you fall sick, your family are part of the journey too. It’s important to always remember that.

If you think insurance is too expensive to afford, you would be surprised that insurance plans nowadays are diversified and tailored to your needs with a friendly price tag for as low as RM100* a month in return for a coverage of up to RM100,000* – a coverage amount that is always higher than what you need to pay. As age is a factor, get yourself insured as soon as possible. If you think getting an insurance today is expensive, it will not get any cheaper tomorrow or the year after.

Accident, sickness or tomorrow. Which will come first? No one can predict. But you can predict how you can manage your finance when unfortunate situations happen by having an insurance coverage. It can also help you to plan, preserve, and manage your assets effectively.

Insurance is not a short-term financial contingency; it’s a long-term protection for greater freedom.

If you’re not sure where to begin or start, there are a plethora of sites to help you compare different insurance plans under different companies. If in doubt, contact an insurance or financial adviser directly for better understanding of the product and to find the best fit and coverage for your income and lifestyle.

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