Insurance, was a topic that I remember was quite sensitive for many years in my household as I was growing up. I never knew what insurance was but I knew it as ‘gambling with our lives’ or putting a price on our lives.
Even today, insurance is still debated amongst Muslims.
On one camp, we have those who say it is NOT PERMITTED, for the reasons I’ve mentioned earlier as well as we need to let God decide what’s best for us.
On the other camp, I’ve learnt that it is ALLOWED, because it provides you with financial security not just for yourself, but for your loved ones should something untoward happen to you. It is much akin to Muslims way of describing what the Prophet described as ‘tying your camel to a tree’.
I believe that both has its’ own merits and whilst the former has entirely submitted themselves to God’s will, the latter has decided that it is still better to be prudent even when we are submitting to God’s will.
I happen to belong to the latter group and let me share with you why.
In 2005 when I was serving my National Service, I purchased a Personal Accident plan from AVIVA Insurance. I paid $33.50/month for it with hopes that I never have to use it. That’s the whole idea of getting an insurance. It sounds stupid but that’s how it works.
5 years later, on August 13, 2010, I met with a motorcycle accident. I fractured my arm and couldn’t ride to work nor perform daily tasks nor work as a drama trainer for a whole period of 90 days, which extended to a further 90 days.
As a freelancer, not being able to work is the worst thing that could happen to me. No income, no form of sustenance and yet, the bills continue to need to be paid.
Thankfully, I remembered I had my personal accident plan.
I submitted a claim for it for the first time and it provided me with much relief. I didn’t have to beg anyone to give me money, or borrow from anyone. The amount wasn’t as much as what I could have earned as a freelancer but at the very least, there was INCOME REPLACEMENT for the time I couldn’t work.
This became a turning point in my life and changed the way I approached insurance.
Insurance is a cost that you need to include in your monthly overheads, but no doubt, it is as essential, like your mobile phone, a privilege only to those who can afford them. Nonetheless, I like to believe that if you can afford a mobile phone, it might be advisable for you to get yourself insured too.
As you can see from what I shared earlier, my Personal Accident insurance cost me $33.50, that’s cheaper than what I used to have to pay for my monthly mobile bill! And with more insurers out there, you can easily purchase a Personal Accident insurance for less than that which provides you with reasonable income replacement payouts for your rainy days.
Click here to see which insurers are recommended and charging you a low fee for it!
What are the other types of insurance that I think is essential?
- Personal Accident (is a must! Even a sprain or food poisoning is considered claimable!)
- Hospitalisation (is good to have. This complements your PA. Should you get warded, you’ll get paid additional for it)
- Medisave Rider (to avoid paying hefty bills even with a hospitalisation)
- Travel (if you frequently travel overseas, even to JB or Batam! For your peace of mind even for a 30 minute ride into JB to top up your tank)
These would be the essentials in my opinion in no particular order except for Personal Accident.
This post is not sponsored by any company, but seriously, insurance for me is ‘tying my camel to a tree’.