30th April 2025 - 5 min read
A recent survey by Sun Life Malaysia, a life insurance and takaful provider, has revealed that 65% of Malaysians recognise the importance of legacy planning, with 71% or 7 in 10 Malaysians who already have a legacy plan preferring to use insurance/takaful products as financial planning tools.
As part of Sun Life Malaysia’s ongoing InsureLit Campaign, their second annual ‘Insure or Unsure: Sun Life Insurance Literacy Survey’ conducted in December 2024 (involving 1,040 respondents) explored Malaysians’ awareness, attitudes, and decision-making regarding insurance, takaful, and legacy planning preparedness.
“We are encouraged by the progress we are seeing in insurance/takaful literacy among Malaysians, and our InsureLit campaign has contributed to that, which is good,” commented Raymond Lew, President/Country Head of Sun Life Malaysia. “However, the data on legacy planning tells a more concerning story. While 65% of Malaysians grasp its importance, a surprisingly high 85% haven’t taken any concrete steps. This highlights a real challenge – people understand the need for protecting their loved ones, but the action isn’t following through.” Lew also highlighted that the crucial thing to remember is that legacy planning is not limited to the rich; it’s a necessity for every single family, offering significant benefits.
The survey uncovers an interesting trend–amongst the 15% of respondents who already had a legacy plan in place, it was highlighted that they are proactively utilising varied financial planning tools to preserve their wealth for the next generation. Among the financial planning tools that were sought after included insurance/takaful (71%), trust funds (53%), and wills (44%). Their motivations include protecting family wealth (73%), ensuring financial security for loved ones (69%), and preserving family values (50%).
In 2024, 35% of respondents rated their self-perceived understanding of insurance and takaful products as good – a rise from 28% in 2023. This underscores the need for continuous education. Ownership of insurance policies remains closely tied to literacy levels, with those who felt more knowledgeable being twice as likely to hold at least one life insurance or takaful plan. Nearly half (49%) of respondents had a policy in the past year.
Income level also influenced perceived understanding. Of those earning RM10,000 or more monthly, 51% rated their insurance knowledge as “moderately well” or “very well,” surpassing lower-income groups. This pattern mirrors 2023 findings, where higher earners displayed greater literacy and a preference for independent research, while lower-income respondents relied more on agents for advice.
The statistic that over half (54%) of Malaysians engaging in legacy planning seek professional advice, underscoring a growing recognition of the complexities involved that go beyond simply writing a will. According to Sun Life Malaysia, a robust financial legacy planning encompasses a holistic strategy to ensure your assets are distributed according to your wishes, your family’s financial future is secure, and potential costs like taxes and administrative fees are minimised.
Other interesting data highlighted in the survey:
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Sun Life Malaysia aims to raise insurance and takaful literacy levels among Malaysians, particularly in legacy planning, to ensure that families are prepared to face future challenges. This effort requires a concerted approach from various parties and is reflected in Sun Life Malaysia’s InsureLit Campaign, which is now running in its second year.
Building on the momentum of its initial success, Sun Life Malaysia is set to double down on its efforts to bridge financial literacy gaps in 2025 with the launch of InsureLit Campaign 2.0. This campaign will focus on two key pillars: enhancing understanding of insurance and takaful, and making legacy planning knowledge more accessible. These goals will be supported by a series of engaging and easy-to-digest content, including educational videos, thought-leadership articles, and youth-focused financial education workshops aimed at university students. Through these continued efforts, Sun Life Malaysia remains committed to deepening financial and insurance literacy while empowering more Malaysians to take charge of their financial future and legacy planning.
To learn more about InsureLit Campaign and its upcoming activities, visit the Insure Lit Campaign page.
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