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Building a strong financial foundation in your 20s begins with having the right tools. As a young adult, participating in Takaful is one of those things you don’t really want to think about until you’re older. You don’t want to think about dying, as you’re more likely to be healthy, not married and don’t have anyone who depend on you. With an entry-level job and a tight budget, you assume you will have time to deal with the issue later.
But that does not mean you shouldn’t be thinking about getting Takaful protection now, as it is one of the things you need to add into your toolbox. The sooner you get started, the greater benefits you will reap. Find out 4 benefits of getting Takaful protection at young age.
Participating in Takaful at a younger age locks in lower contribution rates and reduces the amount you will spend on Takaful protection over the course of your lifetime. As your age climbs, so do your contributions for a new Certificate. The older you get, the higher your contribution rates will increase over the previous year.
Simply put, the younger you are, the cheaper your contributions will be. Isn’t that a great deal already?
Being single when you are young is already a benefit. You have your own income with very much less commitment as you have no spouse and children you need to provide for. This means you probably have more disposable income than those whom just settled down and started a family. Generally, people at young age depend on Takaful protection provided by their employer and think it is enough. But we all know the coverage provided is very basic and might not extend to your future spouse and children, especially if the plan has the co-Takaful clause whereby you need to fork out your own money to settle the bills. Plus, you are likely to move to a new employer every 3 to 5 years, thus leaving you unprotected when you are between jobs or your new employer might not be able to give the coverage that you need.
Now is the best time for you to participate in a Takaful protection plan to top-up the coverage and benefits that the employee benefits do not provide. Spend that extra money you have to protect yourself against uncertainties with a Takaful plan. Another tips – always treat your employer’s Takaful protection plan as a secondary cover.
When you are young, you think that you are immune to everything; also known as the Superman Syndrome. But don’t you forget; accidents happen, sickness too can sneak up on you. When these things take their toll on you, the Takaful contribution rates will go way up. If your condition takes a serious hit, you may need to pay more or your existing conditions will be excluded when you finally do apply for coverage. At this point, your Takaful protection options are limited and you may not get the coverage that you really need. Worst off, if the accident or sickness render you permanently disabled, you will lose your job.
Participating in Takaful protection before injury or illnesses strike can prevent all these from happening. It can be your income replacement should something untoward happens to you or if you are inflicted with permanent disabilities.
Not only will being young and healthy help keep your Takaful contributions lower, but it allows you to participate in a lot more protection plan with better coverage for the future. You may be single and childless in your 20s but that does not mean you will stay that way. You may decide to settle down in your 30s or later and at that point, the appeal of Takaful protection may become clearer. But since you waited, you may be facing higher contributions.
For example, later in life you may need a RM500,000 sum covered when you have dependents, but you could not afford it at the time due to multiple financial commitments. While it may not seem as important to have high sum covered as a single person in your early 20s, that could all change just a few years down the road. Start with a basic plan and coverage when you are young and find a protection plan that offers flexibility of adding on riders or upgrading your plan, so you are protected more comprehensively as the years go by along with your life stages when you have more disposable income.
Nobody likes to think about death and illnesses, especially when you are young and healthy. But when it comes to participating in Takaful protection, the earlier you participate, the more you will save. It can be a lot less expensive to get protected today, than it may be in the future when you have a family to care for.
Great Eastern Takaful offers a comprehensive Takaful protection plan with the flexibility to attach riders as your needs evolve along with the development of your life. Get in touch with our Takaful Advisor here or find out variety of Takaful protection plans that suit your needs here.