Finance for Adults: Take Control Of Your Future With Protection Plans For Your Finances And Health

You're finally leaving home and moving into the world of grown-ups. Moving into adulthood means doing a lot of things you’ve probably never done before, like having a full-time job, complete with a pay cheque. You’ll also need to learn how to manage your own money, including budgeting, tracking your expenses, paying your bills and taxes.

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As you work hard to build a career, earn a living and grow your savings, you need to also plan ahead for the unforeseen by making sure your finances and health are protected with insurance.  

What is insurance?

Insurance is a form of protection against financial loss. It is a way of managing risks, where you transfer the cost of a potential loss to an insurance company. In return, the insurance company charges you a fee called a premium, which you pay annually or monthly.

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How much premium you have to pay will depend on factors such as your age and health condition. In general, the younger and healthier you are, the more affordable your payable premium is. And that means more savings for you on your annual premiums in the long run.  

There is great value in having an insurance policy. In fact, these days it’s considered a necessity for financial planning. Because life happens - we can never tell when an accident or disaster will strike. And if you are not prepared, it can leave you vulnerable in many aspects. 

Having insurance as a financial safety net allows you to focus on the things that matter, like pursuing your dreams. 

There are various types of insurance in the market but for this article, we will focus on three types which every young adult needs to build a solid financial future. 

1. Medical Insurance

Medical emergencies can happen when we least expect it. Getting sick or injured and having to go to a hospital is no fun. But needing medical care and not having insurance is even less fun, because healthcare costs in Malaysia are no laughing matter. 

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This is why medical insurance is a must, to protect you from being overwhelmed with medical bills and expenses. (Here are more reasons why a medical policy is important)

Now, you probably already have medical insurance from your full time job as part of your employee benefits. But here’s the thing: coverage from company health policies are typically low and not comprehensive enough for your needs. And employee insurance coverage is also not permanent - it ends once you decide to leave the company, or when you retire.  

This is why having your own medical insurance plan is still critical, to prevent any gaps in your health coverage for the long term

An affordable medical plan like Gibraltar BSN’s i-Med provides you with coverage for expenses incurred during hospitalisation due to injury and illness. From as low as RM5 a day, you get cashless and hassle-free hospital admission, outpatient, surgical and non-surgical benefits, as well as outpatient kidney dialysis and cancer treatments - all with no lifetime limit. 

2. Life Insurance

What would happen to your loved ones if something unfortunate happens to you? It’s not something pleasant to think about but as an adult, you need to start doing so, especially if your loved ones rely on you financially. 

It’s important to consider the kinds of expenses and debts your parents or family will have to bear if you are not around or are unable to help them anymore. These can include car payments, credit card debt, student loan repayments, groceries and medical care, among others. 

This is where a life insurance policy comes in. It acts as a financial cushion for your loved ones in case the unthinkable happens to you.

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For young adults just starting out, we recommend getting a term life policy which covers you for a set period (eg. 20 or 30 years). This is the most basic form of life insurance and also the least expensive, so you can still get maximum coverage without draining your wallet.

Consider Gibraltar BSN’s  i-Care. From as low as RM9.75 a month, you can get up to RM500,000 in financial support for your family. The plan also includes benefits for accidental death and total permanent disability, and coverage is renewable yearly up to 80 years old.  

3. Critical Illness Insurance 

To complement your medical insurance, we also highly recommend that you take on a critical illness (CI) policy which helps you to pay the cost of your hospitalisation, doctor’s fees, surgery and medication.

On the other hand, a CI plan is payable to YOU. You’ll receive a lump sum amount if you are diagnosed with any of the critical illnesses that are covered in your plan. You can use the payout to help cover your loss of income or any other unexpected costs.   

Now, understandably, if you are in your 20s, are healthy and maintaining a disciplined lifestyle, it’s hard to imagine the possibility of coming down with a serious illness. So, getting coverage for critical illness may not seem urgent or  a necessity for you at this point.

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But while being young and in good health certainly reduces your risk of critical illness, it does not eliminate it. And there are other factors to consider as well, such as genetics and your family’s medical history.   

Check out Gibraltar BSN’s i-Protect, a CI plan that provides you with protection without breaking the bank. From as low as RM10.17 a month, you can be covered against cancer, stroke and heart attack, and there’s no medical check-up required prior to signing up. 

Ready to take the next step in your financial adulting journey? Start by getting a quote from our website here.