Getting an insurance cover is quite tricky. It is not like buying groceries, a shirt, or a chair. The reason is that buying insurance is like buying a promise. In case something bad happens to you, the insurance company will make sure that you get back to your feet. For example, if you have medical insurance and fall sick, the company will foot for all your bills as per the agreement.
Insurance is an intangible product and it can be tempting to question its value. Here are some of the top reasons why it is crucial to have an insurance cover.
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Lenders Need Insurance
Most lenders in Malaysia want borrowers to have in insurance. For instance, if you are using your house as collateral, you will need to have home insurance for the same. The financial institution will need proof for insurance before trusting you with their funds. It cushions the lender against any exposure to risky elements.
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In Some States, Insurance is Compulsory
If you own a motor vehicle, the law requires you to have vehicle insurance. You cannot drive in Malaysia without a sticker showing you have taken insurance for your car. This insurance is crucial as it mitigates the risk of life on the road. Some employers must also have insurance for their employees depending on the nature of work. Not having such a cover is a breach of the law that is punishable.
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Peace of Mind
An insurance cover will give you the peace of mind that you deserve. For instance, a person who has life insurance will be sure that his family will be taken good care of in case of his departure. A person who has homeowners insurance will have less to worry about in case of fire or storm damage. You will also have the peace of mind while on transit and have travel insurance.
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Business and Family Stability
The insurance covers act as a safety net whenever a risk comes your way. If a family loses one of their members, the life insurance will take care of that. The same case also applies to businesses. The business will go on even when you lose a key stakeholder or piece of equipment. We also have the critical illness insurance that will make sure that you don’t use your business funds on medication. Therefore, things will run as usual even when a crisis comes your way.
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Insurance Protects Small Guys
All industries have both small and big players. In case of a risk, the big players find it easy to survive. However, the small players will find it hard to sail through. Small brands are exposed to higher risks and may sell out to bigger brands. Click here to find out more.
The insurance will cushion the small businesses against any risk hence helping them to survive for long. Therefore, insurance will prevent the formation of monopolies hence creating a competitive market. You can take a professional liability even if you are a newbie in the industry.
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Insurance is the Right Thing to Do
Apart from exposure to risk, you can also go for an insurance investment plan. Most insurance companies offer this product to their customers. You need to have a goal of what you would like to accomplish after a certain number of years.
You will be saving a certain amount of money with the insurance company on a monthly basis. It is upon the insurer to invest your funds in the most viable business project. The insurer will pay back all the money plus the interest after the period elapses. You can use these funds for the intended period like education. Click here to login MyAllianz Customer Portal to find out more.