Protecting health, ensuring a continuous source of income and safeguarding oneself against the unexpected means more peace of mind. MEERA MURUGESAN meets insurance experts to find out why women should get coverage.

Ng: Many women don’t talk about insurance with their husbands.

Lim: Women should consider all alternatives when purchasing a policy.

Women should have a clear idea of their insurance needs.

ASK the right questions and know exactly what you’re paying for.

This simple formula holds true for any purchase that a woman may make, but it’s just as relevant when it comes to buying an insurance policy and ensuring her future well-being.

Given that women make up 50 per cent of the customer base and have specific concerns regarding health and financial security, many insurance companies offer specialised packages targeted at them.

But to find something that suits her best, a woman must first have a clear idea of her insurance needs.

The basic protection that most women need are life, accident, disability and medical and critical illness coverage, said Ng Lian Lu, president of the Life Insurance Association of Malaysia.

Medical coverage should top this list as women not only live longer than men and use more healthcare services throughout their lives, but are also more likely to suffer from gender-related diseases.

Ng said women’s health needs are more complex.

Besides pregnancy and related reproductive health needs, women also have a higher incidence of chronic illnesses for which they need ongoing treatment.

Where life insurance is concerned, in Malaysia, men tend to be seen as breadwinners so more men buy life insurance than women.

However, said Ng, given that many women are working and contributing to the family these days, the need to protect their income should not be forgotten. More so if they are single mothers.

“Even for a housewife, there is justification for a certain amount of life cover given that in the event of her premature death, the spouse may need to employ someone to manage her duties,” said Ng.

But besides these basic policies, one addition that women may want to consider is an annuity plan that ensures a constant flow of income upon retirement.

Given that women live longer and will incur more medical expenses, especially as they grow older, financial stability during retirement is crucial, said Ng.

And this also means that the premium a woman pays for such a plan should be higher than her husband’s in order for her to enjoy the same lifestyle as him after retirement.

Ng said in Malaysia, it’s estimated that four out of every 10 people have an insurance policy.

But in general, husbands are likely to have better, more comprehensive coverage than wives when in fact, hers should be equal if not more given her medical needs and lifespan.

As a result, it’s crucial that women play an active role in the family’s financial planning to ensure their needs are well protected.

“Unfortunately, many women don’t talk about insurance with their husbands. They prefer to let their husbands handle it. They may know, for example, whether he has life insurance but they don’t determine whether the protection is actually adequate,” said Ng.

He explained that a wife must also know what liabilities her husband has incurred and how much of these liabilities (debts) she will inherit if he dies.

Women have to ask these questions because they must remember that their role in the family can easily change to that of sole breadwinner, said Ng.

For many women, this realisation only hits after a tragedy and they are left to pick up the pieces and provide for their children. Often, they are forced to turn to family members for financial help.

Asking the right questions and knowing what their insurance needs are can also help women avoid another common mistake - signing up for something they don’t fully comprehend.

In the process of scouting for a suitable policy, women need to be cautious, avoid succumbing to pressure-selling, and fully appreciate the benefits of what they’re paying for, said Lim Chia Fook, executive director of the General Insurance Association of Malaysia.

Lim said many of the policies targeted specifically at women have been designed after the companies concerned have carried out research to determine women’s insurance needs.

But this doesn’t mean women should only limit themselves to such options, said Lim.

While they can start their search by looking at such policies, they should also consider all other alternatives and make comparisons of premium and coverage offered.

More importantly, they should talk to women who have already signed up for such policies to gain a better understanding of how it has worked for them.

The first step towards purchasing an insurance policy happens once a person becomes aware of the need to be protected against unforeseeable events, said Lim.

And even if that person is a homemaker, there’s no reason for her not to have health, life or personal accident coverage if she feels it will enhance the stability of her family, he explained.

Some families, for example, may rely on health coverage provided by the husband’s employer but whether the coverage is extensive enough to include a woman’s specific needs is another question.

“What happens if the homemaker suffers from a female cancer? Is the coverage by her husband’s employer comprehensive enough to include this gender-specific disease or would she have been better off with a policy of her own?,” said Lim.

Similarly, if a housewife has an active life outside the home or drives extensively, then personal accident coverage may be needed.

Lim said there is always a perception that only the breadwinner needs to be insured and the general assumption is that the breadwinner is a man.

“But why does the breadwinner buy insurance? Because he’s valuable to the family. The same should apply to a woman who’s a wife and mother.”

WHAT EVERY WOMAN SHOULD KNOW

• Shop around and understand what you’re buying.


• Remember that your needs may vary from your spouse’s.


• It’s not only men who need life insurance.


• Health coverage should be a top priority.


• Have a clear idea of how well protected your family is.


• Changes in lifestyle may mean reviewing or updating your insurance needs.