How Do You Choose A Medical Card In Malaysia?
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Getting medical coverage for the first time? If you need something straightforward and affordable, you may need a standalone medical card. We have compiled a quick overview of the main standalone medical cards in Malaysia, and how to choose a plan that suits your needs.
You may have heard about how medical insurance premiums are getting higher every year due to medical inflation. We will cover this part later in the article below.
But first, what does a medical card cover?
If you’re a fresh graduate who is no longer eligible to be included under your parents’ medical insurance coverage, it’s important to get your own medical card. That’s because private medical costs are high, and are increasing every year. That’s where a medical card comes in handy – it covers the cost of hospitalisation and surgical treatment, so you don’t have to pay these costs out of your own pocket.
In Malaysia, most medical and health plans are sold with investment-linked insurance products, so it’s easy to mix up your medical card with other insurance policies. But knowing the difference between these policies is important so you can identify gaps in your coverage. Here are the differences:
- Medical card: Covers the cost of hospitalisation and surgical treatment.
- Life insurance: Pays a lump sum if you pass away or experience total permanent disability (when someone is not able to work due to an illness or injury).
- Critical illness insurance. Pays a lump sum if you are diagnosed with one of the covered critical illnesses
- Hospitalisation income insurance. Gives you a daily cash payment during hospitalisation.
What’s the difference between a standalone medical card and a medical rider?
There are two types of medical cards: a standalone medical card, and a medical card rider. Here are some of the differences:
| Standalone medical card | Medical card rider | |
|---|---|---|
| Policy | Is sold as a standalone policy | Is sold as a rider that is attached to a main plan, such as an investment-linked policy (ILP) |
| Premium | Premiums increase with age regularly (and due to medical inflation) | If purchased with an ILP, premiums don’t increase with age (but may be adjusted to keep up with medical inflation) |
| Affordability | Generally cheaper | Generally more expensive |
| Cash value | None | May have cash value generated from investment returns |
Getting a medical rider that comes with an investment-linked life insurance policy can be a good idea if you have dependents who rely on you financially, or if you need an all-in-one life and medical plan that covers your family too.
But if you’ve just entered the workforce, if you don’t need life insurance just yet and you’re looking for an affordable policy to cover your medical expenses, you can consider a standalone medical card.
Why do medical insurance premiums/contributions keep increasing?
Premium increases for standalone medical cards
As shown in the table in the previous section, the premiums for standalone medical cards will increase with your age. The age-related increases are set according to your age and gender, often according to five-year age bands. The premiums may also increase annually due to medical inflation driven by higher increase in claims by policyholders.
For a standalone medical card, the initial premiums may be lower when you buy the policy, but it will definitely increase regularly based on the policyholder’s age and Malaysia’s medical inflation rate. Higher medical costs may result in higher premiums.
Medical rider premiums
The initial premiums for a medical rider is much higher compared to standalone medical cards. As an investment-linked policy, this is to cover the higher premium for the coverage in the future.
The premiums for these type of policies will not increase every year as the higher monthly premium paid will help to cover the higher medical costs in the future. If you own an investment-linked policy, the insurer will provide an annual statement of the percentage of your premium that is put into the insurance company’s investment funds portfolio.
Comparison of standalone medical card plans in Malaysia
One of the hardest parts of insurance shopping is going through a dozen or so brochures (or sitting through your insurance agent friends’ pitches) to find a policy that fits your needs.
Fortunately, we have done a bit of research for you. Here is a list of a few standalone medical cards with a summary of some of their key features.
AIA A-Plus Med Medical Card
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Plan 100 | 100 | None | 100 | As charged | 75,000 |
| Plan 150 | 100 | None | 150 | As charged | 100,000 |
| Plan 200 | 100 | None | 200 | As charged | 125,000 |
| Plan 250 | 100 | None | 250 | As charged | 150,000 |
| Plan 300 | 100 | None | 300 | As charged | 180,000 |
| Plan 400 | 100 | None | 400 | As charged | 220,000 |
| Plan 500 | 100 | None | 500 | As charged | 260,000 |
Allianz HealthInsured
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Plan 150 | 100 | 300 per disability | 150 | As charged | 1,500,000 |
| Plan 200 | 100 | None | 200 | As charged | 2,000,000 |
| Plan 300 | 100 | None | 300 | As charged | 3,000,000 |
| Plan 500 | 100 | None | 500 | As charged | 5,000,000 |
AmMetLife i.Am Health Smart
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Bronze | 99 | 500 per policy year | 150 | As charged | 100,000 |
| Silver | 99 | 500/10,000 per policy year | 250 | As charged | 500,000 |
| Gold | 99 | 500/10,000 per policy year | 350 | As charged | 1,500,000 |
FWD Insurance i-Med
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Plan 1 | 70 | None | 150 | None | 60,000 |
| Plan 2 | 70 | None | 250 | None | 90,000 |
Generali eMedic Plus
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Plan 20 | 80 | 0 or 1,000 | 250 | As charged | 20,000 |
| Plan 50 | 80 | 0 or 1,000 | 250 | As charged | 50,000 |
| Plan 100 | 80 | 0 or 1,000 | 250 | As charged | 100,000 |
| Plan 150 | 80 | 0 or 1,000 | 250 | As charged | 150,000 |
Great Eastern Great Health Direct
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| GHD-200 | 80 | 1,000 | 200 | As charged | 100,000 |
Manulife ManuEZ-Med Medical Card
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Gold | 99 | 500 per policy year | 150 | As charged | 150,000 |
| Platinum | 99 | 500 per policy year | 250 | As charged | 250,000 |
Prudential PRUDirect Med
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Basic Plan | 69 | 300 Med Saver | 150 | As charged | 100,000 |
Zurich Z-MedProtect
| Coverage until (age) | Deductible | Hospital room & board | Pre/post-hospitalisation | Annual limit | |
|---|---|---|---|---|---|
| Plan 1 | 100 | 0 to 20,000 | 100 | As charged | 100,000 |
| Plan 2 | 100 | 0 to 20,000 | 150 | As charged | 300,000 |
| Plan 3 | 100 | 0 to 20,000 | 180 | As charged | 500,000 |
| Plan 4 | 100 | 0 to 20,000 | 200 | As charged | 1,000,000 |
| Plan 5 | 100 | 0 to 20,000 | 500 | As charged | 2,000,000 |
This is by no means an exhaustive list, but it is a good place to start your search for the right medical card for you. If you need help finding a more fitting medical plan for your needs, you can try using iMoney’s Smart Search Tool.
What should you look out for when choosing a medical card?
a) Annual limit
This is the maximum you can claim from your insurer within one policy year (based on the date your policy starts, not during the start of the year).
b) Lifetime limit
This is the maximum you can claim from your insurer. If you have reached this limit, you will no longer enjoy coverage.
c) Deductible
This is an upfront payment you have to make before your insurance covers the medical costs. For instance, if your plan has a RM1000 deductible, and you have an RM5,000 medical bill, you’ll have to pay RM1,000 upfront before your insurance covers RM4,000.
Some plans have no deductibles, while others may give you the option to choose a deductible in exchange for lower premiums. Choosing a high-deductible plan can make sense, but only if you rarely get sick or injured, and if you’re sure you can afford the deductible.
d) Panel hospital
Your policy comes with a list of panel hospitals – these are the hospitals that are working with your insurer to give you faster admission. For some plans, you may enjoy cashless admissions, where you won’t have to pay any upfront fees.
If you are treated in a hospital that’s not in the panel list, you’ll still enjoy coverage, but you will need to settle your hospital bills first and make a medical claim after you are discharged. This can be a hassle – as well as a burden on your finances – so may want to consider getting a policy that includes your preferred hospitals in their panel list.
e) Length of coverage
Some plans provide coverage until you’re 100; others may only do until you’re 70. As a young consumer, you could apply for a plan that gives shorter coverage first, then review your insurance needs later. But if you’re an older consumer who wants to enjoy continued coverage, you may need to look for a plan that has a longer coverage period, as it could be hard to get approved for coverage again later.
f) Premium
This refers to the charges you have to pay to enjoy insurance coverage. Premiums are paid on a fixed schedule (monthly, quarterly or annually). Generally, pricier plans offer better benefits.
Premiums for standalone medical cards tend to be affordable when you are young. For example, according to the plans we researched above, the average premium for a 25-year-old man is RM717 a year, or RM59.75 a month. But premiums will rise with age – at 60, you could be paying around RM2,800 a year to enjoy the same coverage.
Which standalone medical card should you consider?
Based on the comparison above, here are a few plans that we think stand out:
For comprehensive coverage: AIA offers good, all-rounder packages to fit your medical needs for a wide variety of situations.
Protection on a budget: FWD and Generali have a good selection of great medical cards that are appealing for those who are working on a budget.
Worldwide coverage: Allianz offers fairly comprehensive coverage as well as additional plans that are tailor made for overseas medical coverage.
While we’ve provided some suggestions above, the best medical card for you depends on your specific needs. So don’t forget to do your own research. Before you sign up for a plan, narrow down to a couple of options and read their terms and conditions to decide which plan you like the best.
Read More:
Life Vs Medical Insurance: Do You Need Both?
Should You Get Critical Illness Insurance If You Have A Medical Card?
You Have Insurance Coverage From Your Job. Do You Still Need Your Own?
