Why You Need Takaful From a Young Age
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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Taking takaful from a young age is highly encouraged as part of efforts to protect your personal finances.
If you only practise the 3M approach — Saving, Investing, and Growing your capital — it is still not enough to guarantee one''s financial stability.
Why?
We are constantly exposed to various unforeseen risks.
This is undeniable because misfortune strikes without warning.
The reality is, no one knows what fate has in store for them.
For example, while driving we can be exposed to the risk of an accident. Or permanent disability for life. Or potentially being struck by a critical illness.
Just imagine if such things were to happen — would the savings we have accumulated over the years be enough to cover the costs of hospitalisation and medical treatment?
Yes. Perhaps it would be enough.
And perhaps not.
What if death occurs? What do we want to leave behind for our heirs and family?
Especially if you are a married man, what would you want to leave for your wife and children in the future?
All these questions will be answered if you have Takaful.
All medical costs will be covered by having a Takaful Medical Card.
You will not need to spend a single sen from your own pocket. Therefore, there is no need to touch your savings.
The Takaful provider will also be responsible for managing all the financing and treatment costs involved.
In the event of death, the Takaful provider will give out compensation.
They will provide a financial source to the family or heirs as support to continue living comfortably.
And,
Did you know that Bank Negara Malaysia (BNM) announced an increase in premiums of 58% for all Insurance and Takaful Companies?
This took effect from 1 July 2019.
Hence, the premium commitment that will be charged will become increasingly expensive.
Many people reject takaful when they are healthy, but many takaful companies also reject people because they are already ill.
So, would you rather be the one being rejected or the one doing the rejecting?
That is why it is essential to take takaful from a young age so that you do not end up being the one rejected.
The longer you delay, the more expensive the premium you will have to pay for your Takaful.
The earlier a person takes Takaful protection, the lower their risk exposure. And the lower the cost to obtain optimum protection.
Therefore, I strongly advise especially the youth out there to get Takaful protection according to your needs as soon as possible.
Do not delay any longer.
Remember, regret beforehand is profit; regret afterwards is useless.
Successful investing starts with solid knowledge.
Investment Basics:
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Open a CDS Account:
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Takaful operates based on the concepts of tabarru'' (contribution) and ta''awun (mutual assistance) which are Shariah-compliant. Conventional insurance, on the other hand, is based on a buy-sell contract that involves elements of gharar and riba. For Muslim investors, takaful is a halal option for financial protection.
The younger you are, the lower the premium you need to pay because health risks are lower. Additionally, the chance of being rejected by a takaful company is also smaller. If you wait until you are already ill, premiums will be more expensive or your application may be rejected altogether.
Financial experts recommend allocating 5-10% of your monthly income for takaful protection. For young adults earning RM2,000-3,000, a premium of around RM100-300 per month can already provide adequate basic protection including life and medical coverage.
Yes, several takaful and insurance companies are listed on Bursa Malaysia such as Syarikat Takaful Malaysia Keluarga. Investors can invest in takaful company shares to gain exposure to the financial protection industry which continues to grow alongside public awareness.
Takaful protects your finances from unforeseen risks, whilst stock investing helps grow your wealth over the long term — combining both is the foundation of wise financial planning.
Open a CDS account to start investing in stocks on Bursa Malaysia including takaful company shares.
Download our free stock basics ebook to learn the fundamentals of stock investing as part of your financial planning.
Further reading: