Safety Needs is abandoned....

When cost of everything is in a rising, consumers need to know how spend their money and consumers always have a list of hierarchy. Based on Maslow’s Pyramid, basic needs come first, safety needs is the second, the third one is social needs, followed by esteem needs and the last one is self-actualisation.

Rising in cost living has resulted in consumers have to make choices among all the needs and they are unable to fulfilled everything. Of course, consumers will still choose to fulfil the basic needs first. Basic needs include food, shelter, clothes and transportation.

In Maslow’s hierarchy, the second level should be safety needs. In today’s society, safety needs include insurance purchasing.

The president National Association of Malaysia Life Insurance Fieldforce and Advisers (NAMLIFA), Sethu Karuppan pointed out that consumers tend to cancel their insurance when they are having problem in their financial.

From here, we can see that consumers tend to skip the second needs in Maslow’s hierarchy. They are willing to spend their money on other needs such as entertainment and socialisation needs. An experienced insurance manager, Tan King Guok (translated) pointed out that, consumers should be aware of the importance of insurance.

As a conclusion, rising in living cost resulted in impacts such as consumers have to make choices between their needs. As a consumer, we should be smart in making choices and bear in mind, everyone has different hierarchy of needs.