Medical Insurance

As the cost of living goes up every year, Malaysians are finding it a challenge to meet their expenses.

Healthcare, considered to be one of the most important need, has been on an upward trend and more consumers are seeing the need for adequate medical coverage.

In terms of expenditure, the medical inflation rate in Malaysia averages at about 12% a year.

The World Health Organisation has reported that in 2014, non-communicable diseases (NCDs) – brought on by the modern lifestyle such as obesity, diabetes and high blood pressure  – are estimated to account for 73% of total deaths.

However, with the myriad of plans in the market, one may also well be confused with the amount of information available.

Adequacy of protection

A good medical plan will provide adequate protection for all your medical expenses hence you will need to determine how much coverage you require or the maximum amount you can claim known as the lifetime limit.

For most of the medical plans available in the market, insurers only pay claims up to a limit. Once the ‘ceiling’ is hit, the coverage runs out and the medical cover terminates, leaving the customers on their own.

It is important to note that what seems sufficient today may not be sufficient for the future. For example, treatment for lung cancer which includes doctor fees, treatment costs like chemotherapy etc. cost RM40,000 10 years ago.

With medical inflation averaging 12% a year, the same treatment costs RM100,000 today and in another 10 years will have increased to RM300,000.

Value for money

Does the medical plan consider the fact that you probably would not be admitted to hospital every year? Statistics have shown that only 7 in 100 Malaysians were hospitalised in 20112.

As hospitalisation does not happen often, it makes sense to only pay for what you really need and get the best value out of your medical plan. There are some medical plans in the market which allow you to pay a lower premium if you choose to share a certain amount of the medical bills incurred with the insurance company.

With the premium you have saved, you may choose to enhance your medical coverage or reinvest it back to your insurance policy to increase your savings or investment portion.

In the event of a hospitalisation, the premium savings you have accumulated over the years would far exceed the amount you would have to pay on the medical bill. You will be getting more value from your policy as you get to enjoy more benefits and protection with added savings.

Certainty of coverage

Does the medical plan provide certainty of coverage? Many medical plans may include a clause that provides them the right to discontinue the medical coverage if they give sufficient notice.

Thus, the customer may be left without any medical protection when they are most in need of medical attention.

Look for a medical plan that has a non-cancellable clause to ensure peace of mind that your coverage will be there when you need it.