Despite widespread recognition of its importance, only 15% of Malaysians have taken concrete steps toward securing their family’s financial future through legacy planning, according to the “Insure or Unsure: Sun Life Insurance Literacy Survey 2025.” The survey, which polled 1,040 Malaysians from various income levels, reveals a significant gap between awareness and action in legacy planning.
While 65% of respondents acknowledge the need for legacy planning, a staggering 85% have yet to implement any measures to protect their loved ones from financial instability. The survey found that among those who have acted, popular tools for legacy planning include insurance/Takaful (71%), trust funds (53%), and wills (44%).
Married individuals are more likely to recognize the importance of legacy planning, with 60% of them expressing its significance compared to just 34% of singles. Cultural and religious influences are also notable, particularly among Malay respondents, who prefer Islamic inheritance tools like Hibah and Wasiat, in line with Shariah law.
However, barriers to legacy planning persist. The survey identifies financial constraints (41%), lack of knowledge (39%), and competing financial priorities (35%) as key challenges preventing Malaysians from taking action.
The survey also highlights a growing wealth gap in legacy planning efforts. While 72% of high-income earners (earning above RM5,000 monthly) prioritize legacy planning, only 45% of those earning below RM2,000 do the same. Among those who have taken no steps at all, 68% belong to lower-income households.
Family disputes also emerge as a significant concern, with 48% of Malaysians citing conflict prevention as a primary motivator for engaging in legacy planning. Blended and mixed-culture families appear more proactive, with 82% engaging in financial planning discussions, compared to less proactive nuclear households.
Additionally, the survey notes a modest improvement in insurance and Takaful literacy, with awareness rising from 28% in 2023 to 35% in 2024, partly due to initiatives such as Sun Life Malaysia’s InsureLit campaign. However, 23% of respondents still lack a basic understanding of these financial tools.
In summary, while legacy planning remains a key concern for many Malaysians, significant barriers still prevent action, particularly among lower-income groups. The growing awareness and dialogue around financial tools, however, suggest that progress is being made toward securing a more stable financial future for families across the country.
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