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The basics of insurance planning

A comprehensive insurance plan should protect you from potential financial pitfalls in all aspects of your life.

Insurance planning is an important part of financial management. It provides a cushion during tough times that could affect you and your family's financial stability.

There are many types of insurance policies and insurance terminology that can be a challenge to understand.

What is insurance?

Why insurance planning is important  

Types of insurance

What is insurance?

Insurance is a financial product that provides protection against loss, damage or theft. Most people focus on protecting their belongings and those they love.

For example, you can insure your home, car and phone. You can also have financial protection in the event of one's death, disability, or even retirement. That way, your family would be looked after if something were to happen to you.

Why insurance planning is important

Do you know what risks you face? Are you adequately insured? Are you paying too much for your premiums? These are some of the things you should carefully consider for effective insurance planning.

Ultimately, insurance planning is not just about preparing for the worst; it's about securing your financial future. It eases your worries when facing the unexpected. 

The HSBC TravelOne Credit Card comes with up to USD250,000 in complimentary travel insurance coverage. Protect yourself from medical expenses, baggage loss and delays for you and your family.

Types of insurance

While most insurance is optional, some insurance, like motor insurance, is compulsory. This means you need to prioritise what's most important, within your budget.

Here are some types of insurance available in Malaysia:

  1. Car and motorcycle insurance
    Every vehicle in Malaysia must be insured with at least a third-party insurance policy. Car insurance usually covers accidents, breakdowns, gap and windscreen insurance.
  2. Home insurance
    This type of insurance protects your home. It includes buildings, contents, valuable items and household appliances. If you're a landlord, you can extend the cover for your rental property. Coverage includes cost of loss or damage to personal items, such as your phone, tablet, jewellery, gadgets, purse or wallet.
  3. Travel insurance
    Travel care protection can cover you for flight cancellation/delays; lost luggage or passports; medical expenses; accidental death or disability; and emergency medical evacuation. Travel care protection is available for both domestic and overseas trips.
  4. Health and medical insurance
    Private health insurance covers private medical care and hospital stays. You can also get coverage for total or permanent disability, critical illness, personal accident protection, and overseas medical treatment.
  5. Life insurance
    Life insurance plans provide a lump sum payment in the event of death of the insured. This way, you can leave behind a meaningful legacy for the people you care about. Some policies guarantee long-term income to help you through till retirement.

Are you interested in applying for insurance?

HSBC's Universal AssuredTreasure

HSBC’s Universal AssuredTreasure is a limited-pay universal life insurance plan that will help secure your future. With regular cash payments, you'll enjoy a steady income stream to support the lifestyle that suits you best. Whether it's for travel, hobbies, or other pursuits, this plan gives you the financial flexibility to live life on your terms.

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More insurance planning articles

While all insurance is important, some types will be more relevant to your current situation.
There are many things to consider while shopping for insurance. Take the time to evaluate before buying a policy.
Nearly half of us prioritise supporting our families financially. Learn how to protect them from life's surprises.
Familiarise yourself with the terms you may come across as you explore insurance options.