So I received a call from a telemarketer offering takaful coverage for my credit card balance.
She quoted RM0.60 for every RM100 of credit card balance.
Looks cheap, right?
Let’s do some math.
If my credit card statement is RM25,000, the contribution for this coverage would be:
RM25,000 ÷ RM100 × RM0.60 = RM150 a month.
RM150.
To put that into perspective…
At around RM150 a month, I could potentially get RM100,000 coverage for 45 critical illnesses.
At RM173, I could potentially get RM100,000 coverage for 75 critical illnesses.
And there are many more combinations I could compare.
I could also look at coverage for death, TPD and RM25,000 critical illness within a similar contribution budget.
Now, I’m NOT saying credit card protection is useless.
It serves a different purpose.
The bank probably came up with this plan because not many people actually plan for how they would pay off their credit card balance if something happened to them.
If something happens to me, the takaful may help settle the outstanding credit card balance, depending on the plan and its terms.
And a regular takaful or insurance plan can also serve the same purpose — use the payout to clear your credit card balance, and you’ll still have plenty extra left to take care of your other commitments.
But I’m looking at it from a protection planning perspective.
If I’m already spending RM150 a month, what kind of protection can I get, actually?
Am I protecting my credit card balance…
or am I protecting my life, my income and my family’s financial future?
BUT…
I don’t think she’s ever going to call me again after I started asking questions about existing illnesses. 😂
Which made me wonder…
If I hadn’t brought that up, would she have just pushed me to sign up pronto?
BECAUSE
These are the part people need to understand.
A takaful contribution can look very cheap when you only look at the monthly amount.
But you need to ask:
What exactly am I covered for?
How much will I receive?
When will I receive it?
What are the exclusions?
What happens if I already have a medical condition?
And most importantly…
Is this the best use of my protection budget?
Don’t just ask, “How much is the contribution?”
Ask:
RM150 a month sounds affordable… but what am I actually getting for it?
And more importantly — am I even eligible?
That’s where proper financial planning comes in.
Leave a Reply