Malaysia's legacy planning rises despite 17% insurance usage gap

More than half of wealthy individuals already have arrangements in place before age 50.

Malaysia’s ultra-rich prefer life insurance as the primary legacy planning tool, with over half of high-net-worth individuals (HNWI) stating they have a form of legacy in place.

According to HSBC Life’s inaugural survey on High Net Worth (HNW) Legacy Planning in Asia and the Middle East, titled “Bridging the intentions-action gap,” the interest in life insurance has surpassed traditional tools such as wills. Malaysians also surpassed the regional average of 41%.

Malaysia’s adoption rate exceeds that of Singapore at 45%, Hong Kong at 26%, and Taiwan at 24%. 

Additionally, 82% of Malaysian respondents began their legacy planning before the age of 50. 

In contrast, Taiwan recorded the slowest start, with 40% of individuals waiting until after age 50 to begin the process.

Economic growth and family concerns are primary drivers for this trend. 

Malaysia’s GDP grew by 5.2% in 2025, leading to a rising number of younger wealthy individuals. 

Furthermore, 43% of Malaysian respondents identified the potential for family disputes as their main reason for establishing a plan early.

Whilst life insurance is a preferred legacy tool across Asia, its use as a primary tool in Malaysia stands at 17%. 

This is lower than the 25% average across the nine markets surveyed. India, Thailand, and Indonesia currently lead the region in using life insurance as the main vehicle for wealth transfer.

The study was conducted by Ipsos Asia Limited and surveyed over 900 individuals in their peak planning years. 

The research covered nine markets, including Hong Kong, India, Indonesia, mainland China, Malaysia, Singapore, Taiwan, Thailand, and the United Arab Emirates.