Over half of the country’s population are still without life insurance coverage, Life Insurance Association of Malaysia (LIAM) president Loh Guat Lan revealed today.
He said this could be seen in the life insurance penetration rate in Malaysia, which has been hovering at about 54 per cent for the past five years.
“And if one were to eliminate the people who possess multiple life insurance and takaful policies, the figure can probably be further reduced to about 41 per cent of the population being insured.
“Out of this 41 per cent of the population who are insured, over 90 per cent of them do not have sufficient coverage for themselves and their loved ones,” she said during the launch of #BUKANEXTRA, a consumer awareness campaign at The Majestic Hotel, here, today.
Loh said the figures were even more depressing for the underprivileged families in the country.
“Only four per cent of households in the lower income group have some form of life insurance or takaful coverage.”
Loh encouraged more Malaysians to purchase life insurance and they should not consider insurance as an extra financial burden to shoulder.
“Insurance is not expensive; it is all about budgeting. You can always purchase the right insurance policy based on the size of your needs,” she said.
Meanwhile, LIAM chief executive officer Mark O’Dell said #BUKANEXTRA is an online campaign to convey the importance of having insurance to protect people from the vagaries of life.
He said the tagline #BUKANEXTRA is a humourous way to look at Malaysians’ penchant to over-exaggerate things sometimes, and how this trait should be adapted when it comes to preparing oneself for any eventuality.
“The key message of our campaign is that life can be pretty ‘extra’ sometimes, but life insurance is not; it is a necessity,” he said.
The #BUKANEXTRA campaign’s objective is to educate consumers on the importance of life insurance protection, encourage financial planning among youngsters, besides demystifying the concept of life insurance among youngsters through social media engagements.
The campaign involves various activities for members of the public, including an Instagram Story contest and a free interactive game on the #BUKANEXTRA microsite, which allows visitors to create their own video by mixing and matching footage from the microsite. The footage features some over-the-top scenes featuring typical Malaysian life.
The campaign, which will run until Oct 6, targets to raise the life insurance penetration rate in Malaysia to between 70 and 75 per cent.
For more information, visit www.bukanextra.com.