As Malaysia’s population ages, the nation encounters an escalating challenge in safeguarding the well-being of its aging population. According to the Department of Statistics Malaysia, the average life expectancy stands at 74.8 years. While it is common for customers to choose health protection up to the age of 70, this practice creates a substantial gap in health coverage during the critical post-retirement years. This situation underscores the growing necessity for health insurance that extends beyond the coverage term of 70 years.
This trend is further underscored by Manulife’s Asia Care Survey 2024, which revealed that Malaysians are increasingly concerned about rising healthcare costs and their ability to achieve their retirement savings goals. The survey, conducted among 1,038 local consumers, found that these concerns are shaped by the widening gap between their long-term savings aspirations and their actual savings expectations.
Furthermore, the survey highlighted that 70% of Malaysian consumers believe that the health and retirement benefits provided by their employers are insufficient to meet their future needs. This becomes particularly concerning for the aging population, as they may face significant financial challenges if they are unable to secure adequate health insurance coverage.
The survey also revealed that there has been a shift in family financial dynamics among Malaysians. 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 (66%) stated that they are looking to delay their retirement age due to financial responsibilities.
“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 aging population,” said Lee Tat Fatt, Chief Agency Officer of Manulife Malaysia. “To address healthcare inflation, it is crucial to have a suitable insurance plan in place to ensure the well-being and financial resilience of Malaysians in addressing future health and medical needs.”
“Manulife Future Shield offers a comprehensive solution that addresses life insurance, retirement planning, and medical reimbursement, ultimately enhancing health outcomes. At Manulife Malaysia, we are committed to supporting Malaysians in addressing the challenges of an aging population by fostering longevity through innovative solutions.” he added.
The aging population is a growing concern in Malaysia, as people are living longer and facing the challenge of sustaining the rising cost of living over time. Millennials (23 – 38 years old) and Generation X (44 – 59 years old), who now form much of the workforce, are part of the “sandwich generation,” balancing financial responsibilities for both their parents and their young ones. The rising cost of living and inflation are expected to continue evolving alongside this aging generation in the next 20 to 30 years. Relying solely on Employee Provident Fund (EPF) has proven ineffective, as most Malaysians deplete their EPF life savings within the first 5 years.
To address these growing concerns, Manulife Malaysia offers a comprehensive health protection plan designed specifically for the growing aging population in Malaysia – Manulife Future Shield. It is a whole life insurance plan that provides coverage for death, total and permanent disability (TPD), accidental death, and old age disability (Senior Care Benefit). It also has a maturity benefit where the remaining Face Amount of the product will be payable in one lump sum when the policy reaches maturity at age 99.
“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,” Tat Fatt explained.
Future Shield is designed to be flexible and customizable, allowing individuals to choose the coverage that best suits their specific needs and budget. By offering this, Manulife aims to provide Malaysians with peace of mind, and more importantly, a valuable tool to safeguard their well-being and future.