Sun Life Malaysia: The Protection Illusion - 59% Feel Protected, but Only 35% Can Sustain Their Lifestyle Beyond Six Months

29 Jul 2026

Sun Life Malaysia Insurance Literacy Survey 2026 highlights a growing protection illusion and limited financial runway among sandwich families supporting both children and ageing parents.

• Protection illusion: 59% feel adequately insured, but only 35% say they could maintain their lifestyle beyond six months without income.
• Short runway: Nearly three in 10 households (29%) could cope for less than three months if they lost their primary income.
• Income protection gap: Even among those who feel adequately protected, 53% say their coverage would replace only 50% to 100% of their monthly income.
• Emotional toll: More than half (53%) feel stressed, overwhelmed or exhausted at least once a week, reflecting the strain of balancing financial and caregiving responsibilities.
• Intent to act: Encouragingly, 75% say they would take immediate action if a gap in their coverage is identified.

Kuala Lumpur, 29 July 2026: A growing “protection illusion” - where perceived protection does not match real financial resilience - is leaving many Malaysian sandwich generation families financially exposed. While 59% believe they are adequately insured, only 35% say they could sustain their lifestyle beyond six months if their primary income stops, according to Sun Life Malaysia’s Insure or Unsure: Insurance Literacy Survey 2026.

The survey, conducted among 1,060 Malaysian adults supporting both children and ageing parents, highlights how rising living costs and competing financial responsibilities are limiting households’ ability to build financial resilience, despite many perceiving themselves to be adequately insured.

This gap between perceived protection and actual financial resilience becomes even clearer when looking at households’ financial runway. Among those who feel adequately insured, more than half (53%) say their coverage would replace only 50% to 100% of their monthly income, potentially leaving little room to sustain daily expenses or longer-term commitments during a disruption.

Ho Teck Seng, President and Country Head of Sun Life Malaysia, said: “Our survey findings point to a clear protection illusion. Many Malaysians, especially those in the sandwich generation, believe they are adequately insured, but may not be regularly reviewing whether their coverage still reflects their current needs.

For families supporting children and ageing parents, responsibilities and costs can change quickly - often faster than their protection plans. Regular reviews can help ensure coverage stays relevant, keeps pace with life’s demands, and reduces the risk of a protection illusion when it matters most.”

The financial resilience gap becomes more apparent when looking at households’ financial runway. Nearly three in 10 (29%) households say they could cope for less than three months without income.

Under more severe circumstances, the strain intensifies, with 65% saying they would be unable to maintain their current lifestyle beyond six months if the main breadwinner is unable to work. With much of household income committed to essential expenses such as bills (30%), housing (21%) and children’s education (16%), many families are left with limited capacity to build a financial buffer.

Over time, this financial strain does not just affect household stability - it also takes a toll on emotional wellbeing. More than half of respondents (53%) say they feel stressed, overwhelmed or exhausted at least once a week. Anxiety is also common, with 29% experiencing it one to two times a week and 12% almost daily. This sustained pressure can make it harder to step back and review financial plans, reinforcing the gap between intention and action.

This pressure is also reshaping life priorities. 46% say their retirement savings are not on track, while 43% have delayed upgrading their homes or postponed leisure plans. As financial focus shifts toward immediate needs, longer-term goals are often deprioritised.

As Malaysians become more aware of their protection needs, the challenge now is turning that awareness into meaningful action.

Through its InsureLit 3.0 campaign, Sun Life Malaysia continues to play an active role in improving insurance and takaful literacy, bringing financial education closer to Malaysians through a mix of on ground and digital engagement. This includes initiatives such as the InsureLit Youth Programme, ‘Protection with Purpose’ roadshows, as well as ongoing outreach through radio interviews, podcasts, online resources and social media content.

Supported by clearer guidance, accessible tools and personalised support, these efforts aim to help more individuals assess whether their protection plans remain adequate as life circumstances evolve and move beyond the protection illusion towards stronger financial resilience.

Key Survey Findings At-A-Glance 

• Four in 10 respondents (40%) make protection decisions together with their partner, while 6% rely on coverage provided by others.
• Priorities are shifting towards immediate protection needs: medical and hospitalisation coverage (72%), emergency family support (65%), and life protection (65%).
• 11% used to own coverage but no longer do, while 13% of the sandwich generation have never owned insurance coverage.
• 39% provide financial support to additional family members, including relatives.
• Among those who consult a financial advisor or agent on their plans, the top areas of interest are claims and policy benefits (66%), followed by healthcare costs and critical illness coverage (65%), and understanding the types of coverage needed (63%).
• 44% hold only one plan and 25% hold multiple plans. Meanwhile, 7% feel overinsured, and one-third say they have overlapping or unnecessary coverage, highlighting a gap not just in access, but in how protection is structured.
• 75% of respondents say they would take immediate action if a gap in their coverage is identified.
• Self-perceived insurance and takaful literacy has risen by 14% in 2026, but understanding does not always translate into action. Among those who have never reviewed their coverage since purchase, 29% say they do not know how to review or update it.

Check out the Sun Life Insurance Literacy Infographic here.

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About Sun Life Malaysia

Sun Life Malaysia (Sun Life Malaysia Assurance Berhad and Sun Life Malaysia Takaful Berhad) is a 
joint venture by Sun Life Assurance Company of Canada and Khazanah Nasional Berhad.
 
As a life insurance provider and a family takaful operator, Sun Life Malaysia offers a comprehensive 
range of products and services to Malaysians nationwide and is committed to helping Clients achieve 
lifetime financial security and live healthier lives. Sun Life Malaysia distributes its products through a 
range of channels, including bancassurance and bancatakaful, agency force, direct marketing and 
telemarketing, corporate and government business and e-distribution.
 
Sun Life Assurance Company of Canada is a principal operating life insurance subsidiary of Sun Life 
Financial Inc., a leading international financial services organisation providing insurance, wealth and 
asset management solutions to individual and corporate Clients. Sun Life has operations in a number 
of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, 
the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda.  
As of December 31, 2025, Sun Life had total assets under management of $1.60 trillion. For more 
information, please visit www.sunlife.com.
 
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock 
exchanges under the ticker symbol SLF.

For more information, please visit www.sunlifemalaysia.com.