best Insurance in Malaysia
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Best Insurance in Malaysia for B40 and M40

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Looking for the best insurance in Malaysia that is also budget-friendly? If your current money situation is tight, then these online insurance options are affordable and most importantly, better than nothing.

At a glance, the insurance are:

  • Perlindungan Tenang (life and general insurance; for B40, sole breadwinners and people with vulnerable dependents)
  • SOCSO Self-Employment Social Security Scheme (for self-employed and gig workers)
  • MDEC’s eBerkat (various insurance; for B40 and MSMEs)
  • Online Critical Illness Protection (critical illness insurance; for everyone)

Let’s go over each of them one by one. Before you scroll down, it is a good idea to think of your budget for insurance. Have that number in your head – ie, RM25 per month, RM50 per month, whatever you can realistically afford. With that, you can get at least one or a few plans on this list.

(If you can afford over RM100 per month, then consider investment-linked products. See: 9 Things You MUST Know Before Buying Insurance in Malaysia article)

Note: I use the term insurance here even though some products offered are takaful. They are same same but different Lazy to type insurance/takaful, paham-paham je la.

#1 – Best Insurance in Malaysia for B40: Perlindungan Tenang

Perlindungan Tenang is the option you want if you’re looking for dirt cheap insurance, specifically designed for the B40 community. The plans cost between RM1.xx to RM2x.xx per month.

Yes, from RM1 ish. Per month. So no excuse to not be protected, truly.

If you are completely uninsured and fit the demographic, now is a good time – go claim your RM50 Perlindungan Tenang Voucher. You can check your eligibility and find more info at

Insurance products under Perlindungan Tenang fall under 3 categories: conventional, takaful and general. Click the links below to learn more and apply for the products:

1) Life insurance Malaysia options

Get from: From LIAM (Life Insurance Association of Malaysia)

Life insurance is highly recommended for sole breadwinners, especially with dependents including homemaker spouse, young children and/or elderly parents. Getting this product means that if anything happens to you, your family will receive some funds to help them with their living expenses, until they work out another source of income.

As of time of writing, 8 insurance companies in Malaysia offer conventional insurance products under Perlindungan Tenang. You can apply for most of them through the link above.

best insurance in malaysia
4 of the products offered

2) – Family Takaful options (aka halal life insurance)

Get from: MTA (Malaysian Takaful Association)

As of the time of writing, 5 takaful companies in Malaysia offer these takaful products under Perlindungan Tenang. They have the same function as Life insurance (see above), but halal.

best insurance in malaysia

3) General insurance Malaysia

Get from: PIAM (Persatuan Insurans Am Malaysia)

As of the time of writing, 2 insurance companies in Malaysia offer general insurance products under Perlindungan Tenang.

a) Allianz KampungKu

The first is Allianz’s KampungKu, ‘a very affordable insurance plan that provides protection for “kampung” wooden houses or household contents against fire, flood and windstorm risks.’

If you or family members live in a kampung wooden house and don’t have fire insurance, then get this product. I have seen enough news coverage of burning houses to be convinced it is important!

best insurance in malaysia

b) MSIG Mini Personal Accident

The second is MSIG’s Mini Personal Accident, which offers ‘basic personal accident coverage to provide financial assistance for disability or death caused by accidental means.’ The lowest premium is RM13.78 per year, which is a mere RM1.15 per month.

best insurance in malaysia

Which online insurance to get under Perlindungan Tenang

Get these combinations:

  • 1 x Life Insurance OR 1 x Family Takaful (as low as RM2 per month; more is better)
  • 1 x MSIG Personal Accident (as low as RM1.15 per month; more is better)
  • (Optional – if you have a wooden house) 1 x Allianz KampungKu (contact them to get a quotation)

#2 – Best Freelance Insurance in Malaysia: SOCSO’s Self-Employment Social Security Scheme

(Note: This is not technically an insurance, but the benefits are similar enough so that’s why I included it here)

Those who are employed are already paying PERKESO/SOCSO (or you should be – check with your employers). This particular plan is for those who are self-employed, including those working in the gig economy. The benefits, which I think is *excellent*, is as follows:

This Scheme provides protection for self-employed insured persons against employment injuries including occupational diseases and accidents during work-related activities.

Self-employment injury means personal injury to self-employed insured person caused by an accident or an occupational disease arising out of and in the course of his or her self-employment activity including while travelling for the purpose of his or her self-employment activity.

Occupational disease is a disease caused by or arising from any occupation specified in the Fifth Schedule of the Employees’ Social Security Act 1969. This scheme provides cash benefits to the insured persons and their dependants besides medical treatment, physical rehabilitation and vocational training.

Basically, you get:

  • Medical Benefit
  • Temporary Disablement Benefit
  • Permanent Disablement Benefit
  • Constant Attendance Allowance
  • Dependant’s Benefit
  • Funeral Benefit
  • Education Benefit
  • Facilities for physical or vocational rehabilitation

All in one plan!

Contribution-wise, your plan depends on your monthly earning. The higher your insured monthly earning, the higher your contribution per month/year. There are four plans, ranging from RM13.10 to RM49.40 contribution per month:

PlanInsured Monthly EarningContribution Payment Per MonthContribution Payment Per Year

For more info on enrolling in this scheme, please refer to my article How to Apply for SOCSO / PERKESO Self-Employment Social Security Scheme

#3 – Best Insurance in Malaysia for B40 and micro SMEs: MDEC’s eBerkat micro-insurance

MDEC’s eBerkat micro-insurance options are curated for B40 and micro SMEs, and includes:

  • Life insurance
  • Medical insurance
  • Travel insurance
  • Personal accident insurance
  • Car insurance
  • Motorcycle insurance
  • Device insurance,
  • and more. They even include temporary insurance for specific situations, like cleaning insurance!

If you’re a small business owner providing online products or services, this is probably the most affordable and flexible e-commerce insurance option you can get. Look up their business insurance options.

As of writing time, 3 providers are listed on MDEC’s eBerkat page. They are:

1) VSure, ‘your on-demand lifestyle insurance’

best insurance in malaysia vsure life

2) PolicyStreet, which compiles the best insurance deals (as claimed by them), with a Price Match Guarantee.

best insurance in malaysia policystreet

3) Senang, an ‘on-demand subscription-based insurance’ platform

best insurance in malaysia senang

#4 – Best Medical Insurance in Malaysia for B40 and M40 – Online Critical Illness Protection

So far, options under #1-3 give you a wide variety of online insurance options. If you mix-and-match the products, you’re covered for almost everything, even if the coverage is small.

If you have some budget left over, you’d want to get critical illness protection as well. This is the one that’ll give you a lump sum of money when you get really sick, so you can use it to pay for life’s expenses. Ideally, you want it to be at least a few years’ worth of living expenses. At a minimum.

CI is also typically very expensive. Normally critical illness protection starts from RM100 per month or so, depending on the specifics.

It’s not the perfect replacement, but you can get a cheap Critical Illness plan via two providers: (1) FWD Takaful Big 3 Critical Illness Protection Plan (covers Cancer, Stroke and Heart Attack) or (2) MSIG EZ Critical Care and EZ Cancer Care (covers Cancer, Heart Attack, Stroke and Kidney Failure).

With both plans, you’re only covered for 3 or 4 critical illnesses out of the usual 36/40 critical illnesses, but those 3 or 4 make up 85-90% of critical illness claims.

fwd takaful critical illness insurance
Credit to Chun Saw (@chunsaw) for sharing this table with me 🙂

Prices depend on gender, age and smoking status. As a benchmark, I’m a 33 year-old non-smoker and my quote for both plans are:

  • RM27.68 per month (RM100k sum assured) for the FWD Takaful plan, and
  • RM10.96 per month (RM50k sum assured) for the MSIG EZ Critical Care Plan

I am actually paying for separate critical illness insurance which costs me RM171 per MONTH for RM200k so believe me when I say this option is CHEAP.

The downside is, of course, you won’t be covered for the other illnesses. But seeing the odds.. and considering the limitation of budget.. it’s not a bad decision to make.

Are there any other affordable insurance company in Malaysia that I missed?

What other affordable insurance company in Malaysia or online insurance options deserve to be on this list? What other tips do you know to balance cost and coverage? Would love to hear your tips and advice – share them in the comments section below!

Bonus section- Does this insurance cover…

1) Does insurance cover therapy?

As a general rule, no. Insurance does not cover therapy.

2) Does insurance cover abortion?

No. Insurance does not cover abortion.

3) Does insurance cover IVF?

No. Insurance does not cover IVF. However you may be able to withdraw from EPF for fertility treatment.

4) Does insurance cover contacts?

No. Insurance does not cover contacts. You may want to opt for glasses instead – if you know where to look, you can find cheap spectacles in Malaysia quite easily.

5) Does insurance cover Plan B?

No. Insurance does not cover Plan B.

6) Does insurance cover dental implants?

As a general rule, no. Insurance does not cover dental implants. However it may be possible in very specific situations. For example, if you got the SOCSO / PERKESO Self-Employment Social Security Scheme and, I don’t know, a freak accident happened while you were working and you lost some teeth, then you may be able to make a claim and use the funds to cover the cost of dental implants.

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  1. FWD Takaful just launched a new product that cover Life Protection + Critical Illness from as low as RM46/Month. What more is that they paid back 100% of your monthly contribution if there is NO CLAIM made until the end of the policy!

    1. Hi, some of the products above have high age limitations, worth a look.

      Otherwise, you can also talk to financial advisors, sometimes specific plans for seniors come up

  2. A simple direct online insurance can be purchased directly from all Life Insurer web page nowadays. This is a requirement by BNM. The online product offered are life insurance, medical insurance, and critical illness insurance. These are basic insurance that provide basic coverage but very affordable.

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