Importance of Insurance as Part of Personal Finance

I have never talked about insurance as part of my personal finance, because this is the part that I have failed.  I actually bought my first insurance at a relatively young age of 20.  However, I was ignorant at that time and my head told me that I needed help to be more disciplined in saving.  To do that, I needed money to be "kept" away from me, limiting my access to the savings.  

I believe if you read to this part, you would have shook your head at my failed decision.  Yes, I went for both endowment plan and investment-linked insurance.  Worst case of all is, even after my agent (who is still my agent currently) tried to convince me to get hospitalization plan, I rejected the idea due to lack of funds, and at the same time, thinking that I was still young and things are alright as time was on my side.

When it comes to insurance, things are always fine until they are not.  The drag continued till the day I was unfortunately diagnosed with chronic condition, and so, all health insurance are out of bounds for me at this point in time.  Well, the world did not come crashing down on me.  I probably knew that day will come, so it was not a matter of why and how, but a matter of when.  It was at that point in time, it dawned on me that I wasn't adequately protected.  The only protection I had, was a basic medical insurance in Malaysia that protects me till 70 years old, with an annual limit of just MYR 103K, and a lifetime limit of MYR 300K (this was bought by my parents for me in the early days, so thank you mum and dad for always having my back!).  Looking at it in current climate, this is definitely not enough, and probably the limit will be hit with just one unfortunate huge incident (more so with the depreciating Ringgit).

So all this time, the only avenues I can depend on is my portfolio and my Central Provident Fund Medisave (CPF MA).  This is very undesirable as my portfolio is still small, and it can be easily wiped out.  The same applies to my CPF MA, which also have relatively low limits to usage and withdrawal annually.  

Long story short, the really good news arrived after Lunar New Year 2023 when my Malaysia's agent contacted me and told me I was one of the lucky customers of AIA to be selected for a Guaranteed Issued Offer (GIO), which means that all pre-existing conditions will not matter, and once I accept the offer, I will be guaranteed the health insurance issued.  Without hesitation, I went ahead to get it at a relatively reasonable premium, and increase my annual protection limit to MYR 1.5M, with no lifetime limit (till 100 years old).  I am truly grateful for this opportunity to better protect myself and make my FIRE plans a tad more wholesome than before.  

As someone who has walked this path, I urge all young individuals to get health insurance soonest possible.  You will thank yourself for that.  Savings, investments etc. can come later, after you have done the basic protection for yourself, because any unfortunate events could easily wipe out everything that you own.  For any young individuals who is reading this post, and have the intention to get a health insurance, do take a look at this post by Seedly on reviews of the best health insurance in 2023.  This is not a sponsored post, it is just a personal sharing.  Wishing everyone a good year ahead.  Stay healthy, as the old saying goes, 'health is wealth'.  Barista Fire, here I come...!