Income Protection Gap
Income protection – the ability to ensure financial security even in the face of crises such as long-term illness, disability or death – plays a crucial role in our lives and that of our loved ones. Yet, the income protection gap is present in many families, who do not have financial compensation should there be a reduction/loss in household income due unexpected events. This is a global challenge. And it's rising.
As life expectancy gets longer, we face the prospect of generating and protecting our income well into our 80s and 90s. We also become the 'sandwich generation' who are responsible for bringing up our children and care for our ageing parents at the same time. While private savings as well as government-mandated funds (such as Employee Provident Fund) and social protection schemes (such as SOCSO and EIS) can help alleviate our burden during times of difficulty, would it be enough to support our loved ones for the long term?
Did You Know
Over 60% of Malaysians only have enough savings to last them for less than 6 months in the event of income loss.
Source: Income Protection Gap quantitative research, March 2016, conducted by Epiphany RBC
90% of Malaysians with life insurance protection are under-insured, with coverage amounting to only one or two times their annual income.
Source: Life Insurance Association of Malaysia (LIAM) Industry Promotion Committee, 2015
Only 10.8% of urban Malaysian households have enough savings to withstand 'financial shocks' resulting from events such as job loss, an economic crisis, physical impairment, death etc.
Source: The Star, 2016
50% of Malaysian urban households do not have any financial savings.
Source: Khazanah Research Institute's State of Households II Report
You work hard to secure your family's well-being and future but life can throw us a curveball at any time. Are you fully prepared?
Protecting What Matters Most
At Zurich, we have developed a range of solutions to protect you and your loved ones. Whether it be for your children, your spouse, or your parents, we have got you covered.