Today, I want to go back to writing on another important cause in my life: to propagate the importance of having takaful protection. This time around, I want to zoom in specifically to the channel options available for everyone to take one up.
These days, the excuse of not having access doesn’t hold water anymore, as more and more options are made available to cater to the different type of audiences. If there is any big gap in this topic of accessibility, it would really be for the low income (B40) segment, which by design has its own set of challenges.
But for the majority of us, access to product options are out there in the market.
- For people who wants to obtain advice and have someone dedicated to service their takaful needs, there are agents out there that would gladly do it for you.
- For those who had bad experiences or are skeptical towards agents, you now have options of taking it up with a bank (most bank have takaful products on the shelf) or take one up directly online.
- If you happen to have access to certain niche cooperatives, you may even have access to the more affordable group product offerings that leverages on large membership of the cooperatives.
- And at the extreme, if you have trust issues with the takaful operators, you have the option of going to online product comparators, aggregators and the latest addition on the list, online financial advisors, who you can reach out too.
The choice is now in your hands of where you want to get your takaful protection – so choose.
One problem solved.
Comparing Products
Specifically to Muslims with the analytical mind, comes the argument of takaful products being uncompetitive compared to its conventional insurance counterparts.
Firstly, let me attest to you that those days are over, at least for the majority of products – in terms of benefits, they should be at par. You’ll sometimes come across certain small surprises in takaful products that are not there in conventional insurance products.
We’ve climbed that wall.
Secondly, before taking up any takaful products, you should first ask yourself this fundamental question: what is the actual purpose of taking it up. Keeping it simple and keeping to the basics are actually more important from my personal view. The bells and whistles might not be what you and your family need.
My advice to my closest friends has always been the same: find a meaningful coverage, where you can afford to pay it, so that you would continuously pay.
There is no point when times are hard takaful becomes the first item that is being dropped off, because the need and importance of it doesn’t drop off. In actual fact, it’s during the hard times takaful protection is needed the most.
And don’t forget all the high contribution you paid earlier goes to waste once you stop paying. The luxury protection you thought you needed is no longer there, together with the basic ones you really need – just because you didn’t choose wisely.
The Distribution Dilemma
I was given a new portfolio in April 2019 where I was tasked to develop the digital distribution channel, including building up the online product offering.
I take pride on the work done for the online channel over the past 10 months (started since May 2019) and I have a lot of people to thank (Amirul, Tess, Farah, Stella, Haliza, Kim Soon, Intan, Group Office friends… and many many more) in making it happen.
The success is far from near but what I take pride most is that we’re doing it seriously, investing real efforts and resources to build the online channel up.
Change is never easy, but it is inevitable.
These serious efforts do create certain uneasiness from the other channels, especially the much more matured agency channel. Understandably, with not enough information out there, it would create insecurities as this business is their livelihood. It’s the same across the market, probably in other countries too.
I for one know and admit that agency as well as all the other distribution channels are still relevant and for obvious reasons, will continue to be relevant.
Objectively, this issue of channel conflict is at and remains at the most bottom of the list. We have taken all the necessary steps to build the respective platforms for everyone to remain relevant and important.
The bigger problem, which has always been is how many people out there does not have takaful protection; that is what all of us should be striving for, regardless who we are, what channel we represent, which operator we are working for – to get more people protected!
So – the message is clear, if you don’t have a takaful protection yet, go get one in whatever way.
These uncertain times is a strong reminder on how important a takaful protection is, for you and/or your loved ones to continue live a wonderful and assuring life.