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Malaysia Profile: Setting Up Life Insurance

Life Insurance for Expats Living in Malaysia

Life insurance is probably one of the last things on earth you want to think about. After all, you feel great. You’ve still got plenty of years ahead of you. And the thought of spending money every month for something you’ll never get to enjoy can feel like a waste.

But it isn’t.

Why Life Insurance is a Good Idea (Even If You’re Unmarried)

If you have loved ones, consider the impact your death could have on them. For any family members who depend on you, whether a spouse, children, or even a parent, a life insurance policy can ensure that they’re financially secure.

Even if you don’t have anyone relying on you, funeral expenses can cost thousands. And if you’re an expat living in Malaysia, the costs can grow exponentially. Shipping a body overseas for burial can run several thousand dollars. And that’s on top of a service, burial plot, and other expenses. With an international life insurance policy, you can make sure that your family is able to grieve without having their budget burdened.

Unfortunately, getting a reliable insurance policy as an expat in Malaysia isn’t as simple as Googling the closest agency in town. There are several issues and challenges that you must consider if you’re going to get the right insurance for you at a price you can afford.

So, read on to discover some of the biggest problems you’ll face when purchasing life insurance as an expat in Malaysia.

Challenge #1 – Getting Started

You’d think getting started with life insurance would be easy. After all, there have to be dozens of agencies out there, just waiting to offer you a policy. And there are. But not all of them are trustworthy, and many of the ones who are reliable have hoops you have to jump through to get started.

If you’re a foreign citizen who’s living as an expat in Malaysia, you may be required to return to your home country to purchase and finalize your life insurance policy. And depending on the insurance company, there’s a chance you may need to maintain an address and a bank account in that country.

If your job requires you to remain in Malaysia, this could present a challenge for you – especially since applications can take up to two months to process. So, when you’re choosing a life insurance policy, make sure you know the requirements you’ll need to fulfil when getting started.

Challenge #2 – Residency Requirements

Insurance companies often restrict which nations an insured expat can live in and still be covered by their policy. This is because of the different levels of risk associated with different nations. Obviously, a nation that’s in the middle of a war or has high levels of crime will be more dangerous than one that’s peaceful.

And insurance companies will charge you – or refuse to cover you – accordingly.

So, when searching for the right insurance company and policy, be sure to find out which nations are excluded. You might also ask yourself whether or not you plan on moving any time soon. If you fail to do your due diligence when it comes to residency requirements, you could end up spending a lot of money on life insurance that benefits no one.

Challenge #3 – The Language Barrier

While English is widely understood and spoken in Malaysia, the official language is Malay. As a result, most official and government business is conducted in Malay rather than English. And this extends to contracts and policy agreements.

So, if you go into the nearest agency that sells life insurance in Malaysia, there’s a good chance that you’ll face a major communication barrier. Agents may be able to communicate with you, but there’s a chance that they might not be able to discuss the finer points of your policy. And there’s an even better chance that once you’ve agreed on a policy, you won’t be able to understand the terms.

So, one of the biggest problems with purchasing life insurance as an expat in Malaysia is the language barrier. This is why it’s important to find a provider that employs native English speakers and offers all documentation in simple English.

Your Next Steps…

These are some of the biggest problems and challenges that you’ll face when purchasing life insurance as an expat in Malaysia. However, they’re only the tip of the iceberg in everything you’ll need to consider. Besides these considerations, you also must decide…

  • …whether you’ll need a term or permanent life insurance policy.
  • …who your beneficiary will be (and where they may be living in the future).
  • …why you need a life insurance policy.
  • …how much insurance your family will need.

But these aren’t questions that only apply to expats. Everyone who’s in the market for life insurance should weigh these questions carefully – before they ever talk to an insurance agent.

Once you’ve given these things the reflection they deserve, your next step is simple: Get in touch with us to discuss your needs and the options you’re looking for. And don’t be afraid to ask questions. When making an important purchase like this, it’s essential that you’re as educated as possible.

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