KUALA LUMPUR – A study by Zurich Malaysia found that one in three working Malaysians in the prime financial planning age of 25-40 years old have no form of personal protection.
The insurance and takaful operator said the reasons behind the inaction in obtaining personal protection were because of the misconception and lack of information and understanding.
“The thinking that it is sufficient when there is protection provided by employer (21 per cent) and that insurance or takaful is not necessary (14 per cent) point to misconception among these respondents.
“The bad perception about insurance/ takaful (nine per cent) also does not help to convince them to invest for their future,” it said in a statement today.
It said the study further noted that 22 per cent of the respondents indicated they still do not have enough information on insurance and takaful despite the numerous initiatives by insurers and takaful operators
“Although not necessarily the cause, this could have contributed to a lack of understanding (18 per cent) on the purpose and benefit of insurance and takaful,” it said.
It said the findings highlighted the important role that life insurance agents and takaful advisors played in ensuring understanding among the public.
“This is critical to increasing the insurance and takaful penetration rate and reducing the protection gap towards a sustainable way of life,” it added.
The study was commissioned in late 2021 titled “Impact of Pandemic on Protection”, involving 1,201 respondents nationwide.
The group of 25 to 40 year old working adults make up 41 per cent (491 respondents) of the total sample size, and 30 per cent of this group stated that they do not have protection. – Bernama / pic TMR File