Many microinsurance policies are available today, making it hard to decide which is best for you. Likewise, micro insurance plans cover only specific events, so you should read each program carefully to determine what type of coverage you'll receive. Microinsurance provides a lower level of coverage than regular insurance, which is why the prices are lower. The shorter coverage periods of microinsurance plans make them ideal for people who only need short-term protection. Otherwise, there will be no renewal of your coverage.Similarly, if you need more coverage for extended periods, you might consider regular health or life insurance policy. Because you can never predict when these situations might occur, a long-term insurance policy would be a good idea to continue to use no matter what happens. Conversely, if you only had a short-term microinsurance policy, you might not always be insured. Below we've outlined the different types of microinsurance policies available and some things you should consider when choosing each policy. Medical Policy It is essential to get medical insurance since we all have to deal with sicknesses at some point. A person who isn't insured could end up in debt if they get hospital treatment at a private hospital. Many people, however, can't afford a typical medical insurance plan. Unlike a regular medical insurance plan, which may cost a few thousand ringgit per year, a microinsurance plan may only cost a few tens of ringgit per year. A regular medical insurance plan is better for those seeking private medical treatment, which is generally more expensive. In contrast, a medical microinsurance plan may better do the public medical treatment.Medical microinsurance offers a more affordable alternative for those who cannot afford regular health insurance policies.Choose an insurance policy based on your budget and your risk tolerance. Here are a few things to consider: - Age - Health history of the family - Budget - Coverage (including Covid-19 coverage) - Critical Illness PolicyDo you have concerns about uninsured medical costs after hospitalization and treatment? A critical illness microinsurance policy might be a good idea. When you know your family has a history of acute illnesses, you may want to consider this. Standard medical insurance usually covers hospitalization, treatment, and medicine. On the other hand, critical illness microinsurance pays out one lump sum if you've been diagnosed with a critical illness. After your hospital discharge, you can use the money for physiotherapy or health care. Travel Policy Do you plan to take a trip? Are you always on the road for work? Accidents and luggage loss can occur. As a result of Covid-19, you may have to cancel trips or seek emergency medical attention more often. So, travel microinsurance may be a good option if you do not want to be in any of these situations. You can get travel insurance if you are concerned about getting sick or injured while traveling.If you're concerned about getting Covid-19, you'll probably need another plan since travel microinsurance plans do not cover it. Additionally, many types of microinsurance don't cover long-term medical care, so if you want more excellent protection, you might want to consider medical insurance. Personal Accident Unforeseen accidents can cause injuries, disabilities, and even deaths, so personal accident microinsurance is necessary. If you're physically active, you may need it. It might also make sense to look into a policy that covers vehicle insurance and personal accident coverage if you drive long distances frequently. You could save on premiums by enrolling in this plan if you have a short-term job rather than a conventional program with long coverage periods. You may need to renew if you think you will need it in the future.Microinsurance for personal accidents may not cover accidents caused by pre-existing conditions. So you may also need to look into medical microinsurance. Covid-19 Depending on the medical microinsurance plan, coverage of Covid-19 might not include hospitalization and hospitalization due to the high risks associated with the virus. Therefore, you need to find a plan covering them. Consider bundling a few different types of microinsurance policies, e.g., medical and Covid-19-specific, if you're unsure which one to choose. It would be great to find a plan covering those who lost income due to Covid-19. Credit Card And Utility Bills Insurance Are you doing a high-risk job that could result in accidental death, permanent disability, or critical hospitalization? Your bills may go unpaid if you're your household's sole provider or primary breadwinner or if your income is irregular. If this concerns you, consider utility bills and credit card insurance. Business Protection For SMEs Is it more critical for you to protect your business assets? Does your business own valuable property? Make sure you look for a policy covering fire, burglary, business interruption, loss of money, and equipment breakdown. Microinsurance policies for SMEs cover the loss of business income in the event of death, permanent disability, or critical illness. Motorbike Insurance You are generally protected if your motorcycle is lost, damaged, or stolen due to an accident, fire, or theft. You might be covered for damage to another person's motorcycle if you're involved in an accident. Your plan will depend on the coverage you need and your budget.There are a variety of microinsurance plans. If you don't have insurance and can't buy it, you can look for the right microinsurance plan for precisely what you need at a lower price - And ensure that at least you will have some protection if anything goes wrong. You can also combine microinsurance plans with regular ones to get more protection.

Insurance is essential, but not everyone can afford it. Covid-19 has made us more aware of this. Microinsurance and micro takaful are products offered by insurance companies to help those who cannot afford regular insurance. What Is Microinsurance/Microtakaful? The purpose of microinsurance/micro takaful is to provide you or your family with a payout if you suffer an injury, illness, or worse, death. There are, however, lower premiums and coverage levels for microinsurance/micro takaful products. While these products don't offer as many benefits as a standard insurance policy, at least you will have coverage in an emergency. Who Is Eligible For Microinsurance/Microtakaful? Microinsurance and micro takaful products exist to assist low-income earners. The low-income group is households earning less than RM4,000 per month, but insurance/takaful companies decide whether an applicant falls into this category. Are There Any Microinsurance/Microtakaful Products Available? Below is a list of some microinsurance/micro takaful products available:Type Of Insurance DescriptionCoverage for accidental death and critical illness In the case of death or a critical condition, your family will receive a payment.Utility Bills and Credit Cards Coverage You'll be covered for your insured amount if you have insured your credit card or utility bills.Travel Insurance You will receive compensation if you incur medical bills or lose baggage or belongings while traveling.Business Protection for SMEs A business insurance policy provides you with compensation if anything happens to your business.Daily Hospitalisation Allowance In case of hospitalization, the policy will cover daily allowance.Motorbike Insurance This insurance policy covers your motorbike for theft, damage, and accidents.In Malaysia, microinsurance is still in its infancy, so few companies provide these products. Many insurance companies have begun offering these plans by partnering with mobile providers, such as Sun Life and Great Eastern. You can quickly sign up for and manage a microinsurance or micro takaful plan via your phone. How Does It Work? A large majority of these plans are either pay-as-you-go or short-term in nature. Short-term goals usually last six months, and renewal is a must. You would pay monthly for pay-as-you-go plans, and you could subscribe or unsubscribe at any time. You can resubscribe in the future by submitting another application on the website if you want to unsubscribe. What Should You Check? 1. Coverage Make sure you know your coverage. You'll also have a lower range when you pay lower premiums than with regular insurance or takaful. Based on your policy, you will only get coverage for the events described therein. Be sure you understand your scope. 2. Waiting Period Microinsurance and micro takaful plans have the principle of minimizing the waiting period for claims. There is, however, a maximum waiting period of six months for most projects that cover natural death or disability. Therefore, you or your family member will have to wait up to six months for your benefits. So, before you think of canceling your insurance plan to save money, or if you don't have any insurance, consider microinsurance and micro takaful. But bear in mind that losing your insurance with better coverage has disadvantages!