Many of us know that having insurance is important. But, the timing of when you get the insurance is just as important. Your cost and ability to obtain insurance changes significantly as you grow older.

Click to watch video on the basics of medical insurance

Since you’ll probably fall sick more as you get older, which is when you might also face more health issues, insurance isn’t a guaranteed option that you can take up anytime. If you’ve fallen ill before, you might also not be able to buy insurance easily because of exclusions and higher premiums.

So, what are the types of insurance you should be looking at now to make sure you’re protected when
you’re older? Here are 3 insurance plans for you to consider:

Hospitalisation/Medical Card

If you ever fall ill, get into an accident or become injured, the last thing you or your loved ones would want
to worry about are expensive medical bills that could leave you in debt.

Hospitalisation insurance or a medical card will take care of your medical expenses from illnesses or injuries covered under the hospitalisation/medical card plan. It can also help cover more expensive private hospitals which you might prefer to go to. There is also the option of adding on hospital income which gives you an allowance for every day that you’re hospitalised.

For medical and hospitalisation insurance, premiums usually start from about RM33 a month to RM340 a month¹, depending on the limits and coverage preferred.

To learn more about medical insurance, read our guide.

Life

Life coverage gives you a lump sum payout upon death, takes care of any final expenses you may have and also covers total permanent disability. Life insurance allows you to continue providing for your loved ones and can also help cover any loans you’ve taken after you’ve passed away.

There are three types life insurance:

Term life insurance	Whole life insurance	Investment-linked whole life insurance
Most popular in Malaysia. Provides coverage for only a certain period and makes sense if you have children that you want to protect only until they are old enough to take care of themselves. The shorter coverage period means premiums are lower and may be more affordable than other types of life insurance.	Provides coverage for your entire life and includes a savings portion.You can use the savings when you need it or use it to pay future premiums. More expensive than term life insurance for the same amount of coverage	Combination of whole life policy and an investment-linked product. Part of your payout depends on the performance of the investment product. Usually more expensive than term and whole life policies.

To figure out which type of life insurance you should get, watch our video, or read our guide to understand more about life insurance.

Critical Illness

Critical illness plans offer you a lump-sum payout if you get diagnosed with an illness that could take your life. Examples of critical illnesses include stroke, heart attacks, cancer, and organ failure. For some, the payout from this insurance is used to offset medical expenses.

This type of insurance can also be used as a form of income replacement. Income replacement is important if you’re the sole breadwinner of your family or you have dependents relying on you financially. You may have to temporarily take a break from work. Sometimes, critical illness can also cause permanent effects which may affect the type of work you can do.

Premiums for critical illness insurance will usually depend on your health when you sign up for a plan, as well as the number of illnesses covered by the plan and its benefits. But, plans can start from around RM10 a month for the coverage of 3 illnesses.²

How do you buy insurance?

Here are the steps you’ll usually have to go through when buying insurance:

Speak to an agent or contact an insurance company directly to find a plan that suits your needs and budget. You should also compare plans from different insurance companies to make sure you get the best coverage based on what you can afford.
Once you’ve chosen a plan, the insurance company or agent will take you through the signing up process. You might have to undergo a medical check-up depending on your medical history or family background. The coverage you get and the premium you’ll have to pay will depend on the results of the check up.
You’ll usually have to pay your first premium when you sign up. After that, you’ll have to pay your premiums either monthly or annually.

To learn more on what you should look out for when buying insurance, read our guide.

Ready to protect your older self?

Insurance should be balanced against your monthly/yearly budget and other financial goals, so you should figure out how much you can afford to pay for insurance before you look for insurance plans. If you’re worried about the affordability of insurance plans, you could look at insurance schemes provided by the government.

Ultimately, insurance is important to help protect you and your family financially if you run into medical problems. So, try to get at least a basic plan now that can help ease some of your financial burdens later.

To help you understand more about insurance, read our guides on medical insurance and life insurance.

¹ https://www.imoney.my/medical-insurxance

² http://www.fwd.com.my/direct/big-3-critical-illness