How to save money in insurance


Most adults in Malaysia owned insurance policy, knowing how much they paid their premiums, but not many really understand their coverage and actual needs. End up either spending more than they need to, or too little in coverage that leave themselves and families vulnerable.

If you feel the financial struggle now, what will happen to your family if you are not around? If you can’t afford the premium, you can’t afford the bill.

No one enjoys thinking about the possibility of an accident, death or illness. However, as a responsible adult, this is one of those unpleasant things that you should not avoid, even when you are on a tight budget. 

So, make sure you and your family is protected. The good news is, if you get the right plan, insurance is not as expensive as you think.

How to save money on insurance?

There is no such thing as a coupon for discounts on life insurance, but there are other ways you can save money.

  • Choose the right type of plan. Consider term. In most cases, term insurance is the most affordable coverage you can get. Whole life insurance can cost 10 times more than a term insurance. Strategically cover with a term will save you lots of money.
  • Pay annually. Except Investment Linked Plan, paying annually can typically save you around 5% of your premium.
  • Compare quotes from different companies. Insurance pricing can be very different across different insurance companies. Each insurer has a different unique advantage or lost leader strategy. They might have different underwriting guidelines as well. You can save money by choosing the best value quote. When you get recommendations from an independent adviser, you are provided with competitive prices from all the top insurance providers.
  • Take a review on your existing plan. You may be overpaying especially if you simply purchased your insurance through an agent that only represents one insurance company. Chances are, you may be able to get a lower rate just by comparison shopping different companies. Or from another perspective, you can get higher coverage with the same budget.
  • Separate your coverage. Bundling your insurance might sometimes be more expensive. You may save money by getting the combination of best value solution from different companies.

Plan for what you need

  • Explore what are the personal risk that can put you and your family in financial hardship shall it happen. (Death, Disablement, Critical Illnesses, Personal Accident, Medical)
  • Estimate what, how much and how long you need to cover:
    • Debt (Car, credit cards, student)
    • Final expenses (Funeral expenses, estate distribution expenses)
    • Mortgage Loan
    • Family Living expenses (Groceries & food, monthly bills, parents/spouse living allowance, children’s education…)

Don’t be hesitate to work out the ideal number that you need. Insurance can be much more affordable than you think

Shop around for insurance coverage

After deciding how much coverage and how long you need the protection, shop around for the lowest price. The premium will be different based on your occupation class, gender, age, whether or not you are a smoker and how much you drink. For smokers, most companies will charge a higher price, while a few offer a standard rate for non-smoker and smoker, if you are a smoker, you’ll probably find it cheaper here.

Independent Financial Adviser provide proper planning and advice. Their license allow them to freely shop around, help you to streamline the best solution you can get in the market.  

While for medical coverage, we encourage you to shop for good value instead of purely on the lowest price itself. You’ll want a medical card with good coverage, good claim experience and is reasonably charged. All companies will have different benefits, while they might sounds good, but might not be practical when it comes to the actual claim scenario.

An easy way to start your insurance shopping is to get to an independent financial adviser. They would be able to understand your situation and help you create a protection strategy that fits your needs and budget. Their license allows them to freely shop around for the best solution in the market for you. All recommendations will be supported by unbiased comparisons. You’ll be able to find the right coverage at the right price and make your money spend worthy.

Get unbiased insurance advice today. Connect to an Independent financial adviser.