Q1. "Over half of the country's population are still without life insurance coverage, Life Insurance Association of Malaysia (LIAM) president Loh Guat Lan revealed. He said this could be seen in the life insurance penetration rate in Malaysia, which has been hovering at about 54 percent for the past five years. If one were to elimate the people who possess multiple life insurance and takaful policies, the figure can probably be further reduced to about 41 per cent of the population being insured. Out of this 41 percent of the population who are insured, over 90 percent of them do not sufficient coverage for themselves and their loved ones. The figure were even more depressing fro the underprivileged families in the country. Only four percent of household in the lower income group have some form of life insurance or takaful coverage. Insurance is not expensive, it is all about budgeting. You can always purchase the right insurance policy based on the size of your needs. Life insurance is a humorous way to look at Malaysian's penchant to over-exaggerate things sometimes, and how this trait should be adapted when it comes to preparing oneself for any eventuality. Life can be pretty "extra" sometimes, but life insurance is not, it is a necessity." On the other hands, medical insurance premiums in the country have been increasing at an unsustainabke rate in recent years. Such a trend could render medical insurance plans unaffordable to many people, including those from the middle-income group. One of the reasons for the increase is the high medical costs. According to Willis Towers Watson's 2019 Global Medical Trends Survey Report, Malaysia was ranked No 2 out of 13 countries in Asia in terms of medical costs." Adopted from New Straits Time, 09 September 2020 (a) Based on the statement above, discuss why life insurance is a necessity. Justify your answer with example. (10 marks) (b) In view of the statement above, accept that Mr. Lee generate a monthly income of RM8,000 and his wife generate a monthly income of RM4,500. The outstanding household debt is RM600,000 and they predict that the funeral expenses roughly RM40,000. He does not possess any Life insurance protection, what would you be able to recommend him for the coverage amount he should issued for him based on below situation. (i) With no kids. (5 marks) (ii) With 2 kids. (5 marks) (c) "On the other hands, medical insurance premiums in the country have been increasing at an unsustainabke rate in recent years. Such a trend could render medical insurance plans unaffordable to many people, including those from the middle-income group. One of the reasons for the increase is the high medical costs". Explain FIVE (5) factors that lead to a higher cost of health care. (10 marks) [Total: 30 marks] Q1. "Over half of the country's population are still without life insurance coverage, Life Insurance Association of Malaysia (LIAM) president Loh Guat Lan revealed. He said this could be seen in the life insurance penetration rate in Malaysia, which has been hovering at about 54 percent for the past five years. If one were to elimate the people who possess multiple life insurance and takaful policies, the figure can probably be further reduced to about 41 per cent of the population being insured. Out of this 41 percent of the population who are insured, over 90 percent of them do not sufficient coverage for themselves and their loved ones. The figure were even more depressing fro the underprivileged families in the country. Only four percent of household in the lower income group have some form of life insurance or takaful coverage. Insurance is not expensive, it is all about budgeting. You can always purchase the right insurance policy based on the size of your needs. Life insurance is a humorous way to look at Malaysian's penchant to over-exaggerate things sometimes, and how this trait should be adapted when it comes to preparing oneself for any eventuality. Life can be pretty "extra" sometimes, but life insurance is not, it is a necessity." On the other hands, medical insurance premiums in the country have been increasing at an unsustainabke rate in recent years. Such a trend could render medical insurance plans unaffordable to many people, including those from the middle-income group. One of the reasons for the increase is the high medical costs. According to Willis Towers Watson's 2019 Global Medical Trends Survey Report, Malaysia was ranked No 2 out of 13 countries in Asia in terms of medical costs." Adopted from New Straits Time, 09 September 2020 (a) Based on the statement above, discuss why life insurance is a necessity. Justify your answer with example. (10 marks) (b) In view of the statement above, accept that Mr. Lee generate a monthly income of RM8,000 and his wife generate a monthly income of RM4,500. The outstanding household debt is RM600,000 and they predict that the funeral expenses roughly RM40,000. He does not possess any Life insurance protection, what would you be able to recommend him for the coverage amount he should issued for him based on below situation. (i) With no kids. (5 marks) (ii) With 2 kids. (5 marks) (c) "On the other hands, medical insurance premiums in the country have been increasing at an unsustainabke rate in recent years. Such a trend could render medical insurance plans unaffordable to many people, including those from the middle-income group. One of the reasons for the increase is the high medical costs". Explain FIVE (5) factors that lead to a higher cost of health care. (10 marks) [Total: 30 marks]
