KUALA LUMPUR: Manulife Holdings Bhd
eyes further penetration into the younger generation segment, with more offerings in the life insurance space.
It believes the increased focus and concerns on the rising private healthcare cost can be offset in part by purchasing insurance to balance off risks.
The insurance group said the longer lifespan of the general population would also mean that people will need to plan in advance for their financial needs as they head into retirement.
“Some people find it necessary to work after retirement due to the longer lifespan,” Manulife Insurance Bhd chief agency officer Lee Tat Fatt said at a presentation yesterday. Chief marketing officer Marilyn Wang said life insurance can help cope with the unpredictable nature of health expenditures.
According to the Statistics Department, 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, the group said 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, it noted.
Meanwhile, Manulife’s Asia Care Survey 2024 conducted among 1,038 local consumers in March revealed that there has been a shift in family financial dynamics among Malaysians.
Some 40% of respondents do not expect their children to provide for them in their old age. While another 49% of Malaysian couples among the respondents said they do not plan to start a family or do not want to have children.
And more than half of the respondents (66%) stated that they are looking to delay their retirement age due to financial responsibilities.
The survey also 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 ageing population, as they may face significant financial challenges if they are unable to secure adequate health insurance coverage, it said.
It also noted the rising cost of living and inflation which are issues that are expected to continue to be prevalent in the longer term for the next 20 to 30 years or so.
The group said the trend of an ageing population, while a positive sign of better health outcomes, gives rise to other challenges like sustaining the rising cost of living over time.
Millennials (23 to 38 years old) and Generation X (44 to 59 years old), who now form much of the workforce, are part of the “sandwich generation”, who need to balance their financial responsibilities for both their parents and their young ones, it said.
The group launched its insurance plan called Manulife Future Shield that is targeted at people in the 45 to 55-year age group.
