4 Things That Your Insurance Agent Might Not Tell You

What does medical insurance do?

Medical insurance pays off your costs of treatment and medication of hospitalization.

Don’t confuse medical insurance with critical illness insurance, which pays out a lump sum once diagnosed with one of the critical illness.

Critical illness insurance serves as income replacement while medical insurance pays for your medical bill.

Many of us understand the importance of medical insurance and have bought medical insurance.

But do you know what have you bought for medical protection? Read below to find out things that your insurance agent might not tell you.


  1. Type of medical insurance

There are two types of medical insurance:

Standalone medical insurance

Investment linked medical insurance


Premium Waiver means that your premium will be waived upon diagnosis of critical illness/ total permanent disability.

Payer benefit is important for child medical policy. Payer could be father or mother of the child. With payer benefit, premium will be waived upon payer’s death, diagnosis of critical illness/ total permanent disability. Your child is guaranteed with medical care even if you are no longer around.

In another situation for a family with husband as sole breadwinner, the payer can be husband for wife’s medical insurance. Again, wife’s medical care is guaranteed even when his husband lost ability to earn due to death, critical illness or total permanent disability.


  1. Annual limit & lifetime limit

It is important to look into your policy’s annual limit and lifetime limit for hospitalization and surgical fee.

Recommended annual limit : 1 million

Recommended lifetime limit: Unlimited

Why at least one million of annual limit?

Because malaysia’s health care annual inflation rate is at double digit!

Read https://www.theedgemarkets.com/article/malaysias-medical-inflation-doubledigit-pace

Why is unlimited lifetime limit for hospitalization & surgical fee important?

Because it eliminates the need of keep upgrading your medical insurance!

Also, take note on claimable limit on outpatient cancer & kidney dialysis treatment. Some policies offers limited claimable amount for your entire life.

Recommended limit for outpatient cancer & kidney dialysis: unlimited per lifetime

Reason being: outpatient cancer treatment (consultation, take home drug, chemotherapy) & kidney dialysis treatment is long term treatment. The medical cost involved can be gigantic.


  1. Fund Performance (for investment linked medical insurance)

Normally, you are told that you will get back certain amount of cash value based on PROJECTION. Have you thought of how is the fund actually performing? The cash value can be projected based on 12%, in fact, the actual fund performance can be only 6%.

Ask your agent to show you the fund fact sheet. Find out the actual fund performance.

You will be paying for your medical insurance for at least 20 – 30 years, it is vital to have a star performing fund in your investment linked medical insurance.

You also have right to switch fund from time to time.


  1. Free look period

You have right to cancel your medical policy within 15 days from the day you received it, with full refund.

Take this 15 days and read through your policy to make sure what your insurance agent told you is consistent with what is shown on the policy.

Buying medical insurance is a long term commitment. Activate your free look period right if the benefit provided or the premium does not suit you.

You can then choose a right plan that meets your need after the cancellation.

Happy Liberation Day! (1).png

With the information above, you can now check on your medical insurance to ensure you are properly protected with adequate coverage.

Talk to your agent if you need an upgrade.

If you need a review on your policies/ second opinion, you may drop me a message too.


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