Most people we talk to would agree that insurance is an important part of financial planning. We could have seen people we know claiming on their policies due to unexpected incidents that have occurred.

Read also Private Retirement Scheme for fresh graduate in Malaysia and claim your FREE RM1000 youth incentive from government.

Even though we know insurance is important, many fresh graduates in Malaysia have very little understanding about the types of insurances. They are not sure what’s out there, and what they should be buying.

Read also Insurance 101.

In this article, we hope to discuss the various types of insurances that fresh graduates would need.

Most of the insurance policies will fall under one of the following two categories.

  1. Health Insurance  (For your own healthcare cost)
    Example : Hospitalisation plan, critical illness insurance, personal accident rider
  2. Life Insurance (For your dependants)
    Example : Term Life Insurance, Whole Life Insurance

Why is Health Insurance Important for Young Graduates?

What is the biggest asset for young graduate? The answer is your ability to work. Our entire career is all depending how we work towards our goal and we can only achieve it by being healthy. We are all positive that we can do well in our career to give a better living to our loved ones.

However, the truth is some unexpected health matters might steal the ability from us. How well we know about the medical costs? What you need at this point is to hedge yourself against the risk of accumulating a huge medical bill. Most of the young graduate probably would not care about the medical cost but some unfortunate incident can happen at anytime. Not only you might lose the ability to work, the unbearabled medical bill might cause you into debt crisis.

Health Insurance plays an important role in risk mitigation as it reduces our financial burden or completely cover the medical cost of hospitalisation and the follow up treatment that we may need.

Another thing would be your family members including your non-working spouse, your children and your elderly parents. After all, they will have to go on without you. Make sure they’re protected, too. Life insurance helps your loved ones pay the mortgage, bills, even children educational costs, after you’re gone. It also provides tax-free cash to pay estate and death duties. Nothing can replace you in their hearts, but planning ahead with life insurance can make things easier for those you leave behind.

How Much Would All These Insurance Cost?

Below is the insurance plan for a young graduate (25 years old), non-smoker who works at a desk-bound job.

Protection Sum Assured & Coverage
Death / Total Permanent Disability MYR 100,000
Critical Illness (Early Claim Benefit) MYR 200,000
        Cancer Recovery Benefit MYR 70,000
        Diabetes Recovery Benefit MYR 40,000
Hospitalisation and Surgical
        Annual Limit (NO lifetime limit) MYR 1,000,000
        Room Rate MYR 200


The above coverage will cost policyholders about RM270 a month and hospitalisation coverage up to 91 years old.

Young graduate may also add additional life insurance policy which would cost you RM100 for a coverage of RM500,000 on death / total permanent disability.

If you have further questions about the Young Working Adult Package or wondering what other insurance policies you may lack currently, feel free to click here for more inquiries and communicate through Whatsapp.

Read also Save or Invest.

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