COVID-19 And Takaful – 5 Important Lessons

If we should learn anything from the recent pandemic that has struck mankind, it is that unforeseen circumstances can strike anytime, anywhere, and the situation can escalate quite fast, with no indication of when or how it can be stopped.

This would be the simplest example of why people need to protect themselves against an unbeknownst future; and a perfect time to revisit the concept of Takaful.

Here are 5 situations our young generation should consider before saying “Tak Nak” ,“Tak Perlu” or “Tak Pasti” to Takaful.

When you join the workforce and start incurring debt for big ticket purchases

You would cover your car right(yes, this is mandatory anyway)?. The point is, you want to ensure that you would still have a car if anything happens to it (accident / damage/ theft). Be it needing repairs or compensation for the loss of your car, and that you would not suffer a TOTAL LOSS.

For the same reasons, you need a Takaful plan to cover you against any calamity. Just like cars, you will become less physically capable over time and it will be more expensive to start Takaful contributions. Thus, the younger you are (and more likely to be healthy), the cheaper the coverage.

When you are hospitalised

This is probably the most important protection that you need. When you’re hospitalised all you really need to focus on is to get better, but without the right coverage, you will be worrying about the cost of treatment instead.

Medical costs have gone up by leaps and bounds, and for busy executives, waiting your turn (could be months of even years) for treatment or surgeries at government facilities may not be an option. You may have to consider being treated at private hospitals, and thus a medical card is a must.

When you are critically ill

Income continuity: You would need to have a backup plan that would compensate your lack of income during this period, thus a sufficient Critical Illness coverage would help you recuperate with the calm and peace that your body needs.

When you get married and start a family

Now, there are people depending on you and your income. The family needs food, shelter and other necessities. But what happens if something unexpected befalls to you that renders you unable to work? How will they be able to sustain?

Or, if God forbid, you were to expire suddenly, what will happen to your family who is dependent on you, or what will happen to the debts you left behind. You need to protect yourself, so that you or your loved ones would not be in a state of TOTAL LOSS.

Not forgetting that as you get on in life, your commitments are higher, the mortgage and car loan is bigger, household expenses go up, the credit card bills get heavier. Imagine if your spouse and children had to take over these debts? How will they continue to live in the present lifestyle with these commitments loaded on to them?

When you retire

This is long term planning at its best. We all work tirelessly in our youthful years, so that when it’s time to put our feet up and call it a day, there is a steady stream of “income” to pay the bills that will not stop coming and also to continue living the lifestyle that we have chosen for ourselves. For most, the likelihood is that the family unit would have grown and as head of the family, there would be a desire to leave something behind for generations to come. This is also how Takaful supports legacy planning. This is made possible by the maturity benefit option, where you get to choose when and how much your maturity benefit payout should be by planning from the onset the Basic Sum Covered. There are even plans that give you the option to either cash out with a maturity benefit, or to enjoy long term care, even up to the age of 100! So, do your research, check with your advisor friends and make the right decision for your family and yourself. But most importantly, get covered now!

The 3 guiding principles of getting adequate protection through Takaful are:

• Start Early
• Keep updating your certificate according to your needs
• Don’t miss out on contribution payments and risk your certificate lapsing

Visit the official site for more information about Great Eastern Takaful plans.