Cover How insurance literacy enhances women's financial inclusion in society (Photo: Getty)
How insurance literacy enhances women's financial inclusion in society (Photo: Getty)
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When life’s unexpected twists occur, women face greater financial vulnerability than men. Here’s how insurance literacy equips women with the knowledge to safeguard their financial wellbeing in unpredictable times
Women today are breaking barriers in every aspect of life, from rising through the ranks in boardrooms to being the breadwinners and entrepreneurs shaping our economy. Amidst these strides, however, many women still hit a wall in the critical areas of financial literacy and insurance literacy. Although women account for a sizeable portion of the workforce today, research shows that they tend to be left behind when it comes to using financial services like insurance/takaful protection to the same degree as men.
In Sun Life Malaysia’s recent survey on insurance literacy, women comprised more than half of 1,107 respondents who said they felt they didn’t understand enough about insurance, suggesting that women are more likely to be under-insured and more vulnerable to financial shocks compared to men.
Read more: Former investment banker Rejina Rahim's quest to help women be financially secure
Above In Sun Life Malaysia’s recent survey on insurance literacy, women comprised more than half of 1,107 respondents who felt they didn't understand enough about insurance (Image: Sun Life Malaysia)
In Sun Life Malaysia’s recent survey on insurance literacy, women comprised more than half of 1,107 respondents who felt they didn't understand enough about insurance (Image: Sun Life Malaysia)
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More concerning implications from this data revealed that women were twice more likely not to recall key information about their insurance or takaful plans. They were also twice more likely to rely solely on agents to provide policy comparisons and recommendations compared to men.
The average Malaysian woman has a longer life expectancy than a man, which means she will need greater financial independence in later years. A woman’s financial vulnerabilities are further exacerbated by lower earnings compared to men in the workplace and shorter work tenures due to caregiving and career breaks. These factors highlight the importance of financial resilience for women of all stages of life.
Greater financial inclusion, including insurance literacy, for women can no longer be seen as an afterthought, especially if women must ensure they have the necessary resources to support themselves in retirement and beyond.
Above Millennial women starting a family are more at risk of financial shocks during unexpected life events (Photo: Sun Life Malaysia)
Millennial women starting a family are more at risk of financial shocks during unexpected life events (Photo: Sun Life Malaysia)
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Enter insurance literacy, the ability to understand insurance/takaful concepts and make informed decisions about coverage. Insurance literacy isn’t about mastering complex financial formulas overnight, but about instilling positive financial habits early as a hedge against unforeseen circumstances.
For modern women today, insurance literacy is about being empowered to manage your finances and plan for your future without waiting for someone else to do it for you.
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Maintaining financial well-being during unplanned life events hinges on insurance and takaful as a safety net to protect one’s finances. With insurance literacy, women can mitigate the risk of instability and debt that can stem from unexpected situations.
Many women at the stage of starting a family, for instance, are more at risk alongside their young families to financial setbacks during unexpected times. Having an insurance/takaful plan helps ensure that their financial needs are covered in the event of disability, death or other unforeseen circumstances.
Above Raymond Lew, CEO and president/country head of Sun Life Malaysia
Raymond Lew, CEO and president/country head of Sun Life Malaysia
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Raymond Lew, CEO and president/country head of Sun Life Malaysia, emphasised the need for financial resilience among Malaysians, particularly women. He highlighted that despite their increasing presence in the workforce, women are underutilising financial services like insurance.
Lew stressed that significance of building insurance literacy as a financial skill, urging women to ramp up their pursuit of financial knowledge, including insurance, to confidently navigate today’s financial landscape.
Above Sun Life Insurance's InsureLit campaign includes a fun board game to learn about insurance and financial security
Sun Life Insurance's InsureLit campaign includes a fun board game to learn about insurance and financial security
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The first step toward closing the insurance literacy gender gap involves fostering more conversations and expanding access to protection products and knowledge for women of all ages.
Sun Life Malaysia, a life insurance and family takaful provider, is a leading voice advocating insurance literacy and financial empowerment in women. This year, the company launched a year-long InsureLit campaign to elevate insurance and takaful literacy among Malaysians and help them level up their protection knowledge.
The comprehensive campaign integrates various educational initiatives, including digital and social media awareness, roadshows, engaging board games and a primary school outreach programme, sponsored financial programmes, and a dedicated award category targeting women’s financial empowerment at Tatler’s Front and Female Awards Malaysia 2024.
Don’t miss: Meet the 6 inspiring winners of the Front & Female Awards Malaysia 2024
Above The Financial Empowerment Award presented by Sun Life Malaysia at the Front & Female Awards was given to Nuraizah Shamsul Baharin (Third from left), founder and CEO of fintech company MADCash
The Financial Empowerment Award presented by Sun Life Malaysia at the Front & Female Awards was given to Nuraizah Shamsul Baharin (Third from left), founder and CEO of fintech company MADCash
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Sun Life Malaysia supported the inaugural ‘Financial Empowerment Award’ at the Front & Female Awards, which honoured female leaders advocating women’s financial resilience in Malaysia in connection with its overall mission to bolster insurance literacy and advocate financial stability.
The award was given to Nuraizah Shamsul Baharin, who founded MADCash, a fintech company that works with women entrepreneurs. Sharing on women’s financial empowerment, Nuraizah said, “I work with ladies who do not have access to mainstream finance to help them be bankable in two years. Their success is intertwined with ours as we build an ecosystem of women helping other women to succeed.”
She adds, “Having Sun Life Malaysia acknowledge the work that we do at MADCash is so meaningful.”
Click here to learn how Sun Life Malaysia’s InsureLit campaign promotes lifetime financial security for Malaysians
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Previously contributing to Esquire Malaysia, Expat Lifestyle and Newsweek, Tania oversees digital stories across Tatler’s key content pillars, also leading the Front & Female platform exploring issues and topics affecting women today.
