KUALA LUMPUR (Oct 17): Some 70% of Malaysian consumers believe that the health and retirement benefits provided by their employers are insufficient to meet their future financial and medical needs, indicating heightened concerns over rising healthcare costs and the ability to achieve retirement savings goals, according to a survey done by Manulife. 

Manulife’s Asia Care Survey 2024, conducted among 1,038 local consumers, found that these concerns are shaped by the widening gap between Malaysians’ long-term savings aspirations and their actual savings expectations.
 
“While Malaysia’s increasing life expectancy is a positive sign, it also highlights the growing need for comprehensive health protection and financial resilience for our ageing population,” said Manulife Malaysia chief agency officer Lee Tat Fatt in a media briefing session titled “Are Malaysians Ready for Retirement?”.

The survey also revealed that there has been a shift in family financial dynamics among Malaysians, as 40% of respondents do not expect their children to provide for them in their old age. 

Another 49% of Malaysian couples among the respondents said they do not plan to start a family or do not want to have children. More than half of the respondents, or 66% of them, stated that they are looking to delay their retirement age due to financial responsibilities.

To address these growing concerns, Manulife Malaysia launched a comprehensive health protection plan designed for the growing ageing population in Malaysia, named Manulife Future Shield.

With a short-term payment period of five years and targeted at Malaysians aged 45 to 55 years old, the whole life insurance plan provides coverage for death, total and permanent disability, accidental death, and old age disability.

“Life insurance is to protect your assets and savings. We work very hard to save, and we know that there will be medical expenses as we grow older. So, that is the reason why we are looking at someone at 45-55 [years old], because they can relate to the future [needs], as 60-70 [years old] is not too far away,” said Manulife Malaysia chief marketing officer Marilyn Wang. 

“Medical needs are not just about the hospitalisation. They include age care, physiotherapy, wheelchair, crutches; these are things that we don’t think about, but it does cost quite a bit as we grow older,” she added. 

The life insurance plan features a withdrawal benefit from the policy for any unexpected healthcare needs, while ensuring continued coverage up to age 99.  

This withdrawal benefit allows policyholders to make withdrawals due to medical-related expenses such as hospitalisation and surgical expenses, treatment of critical illness, traditional chinese medicine, alternative registered medical treatments, nursing home expenses and medical equipment. 

After the five-year premium payment term and before age 70, policyholders are entitled to withdraw an amount up to 5% of the total basic premium paid each year, subject to a maximum withdrawal of 50% of total basic premium paid.

After the age of 70, policyholders are entitled to withdraw an amount up to 10% of the face amount each year, subject to a maximum withdrawal of 50% of the face amount. 

“We understand that as people age, their healthcare needs become more complex. Future Shield is our commitment to ensuring that Malaysians have the protection they need to navigate their health journey throughout their golden years,” Lee added.