Explore Alternatives Before Quitting Medical Insurance, Takaful Plans, Urges FPAM

KUALA LUMPUR, Dec 18 (Bernama) -- Medical insurance or takaful policyholders are urged to consider alternatives such as exploring policy adjustments or reviewing the existing coverage before terminating their policies.

Financial Planning Association of Malaysia (FPAM) president Alvin Tan said while a 40-70 per cent hike in medical insurance and takaful premiums is expected next year,  terminating an insurance or takaful policy might seem like a short-term solution.

“It can have long-term financial consequences, especially in times of unexpected medical emergencies,” he said in a statement today.

As such, he said FPAM recommends several alternatives to help policyholders manage private healthcare costs without sacrificing their coverage.

For instance, policyholders could speak with their insurer/ takaful operators (ITOs) to discuss restructuring their policy.

“Options like increasing the deductible amount or opting for a co-payment structure can make premiums more affordable,” he said.

He also suggested that policymakers review their existing coverage by evaluating their policies to identify any redundant or non-essential coverage that can be adjusted. 

“This may help reduce the premium amount while retaining essential benefits,” he added.

Policyholders may also compare similar plans from other ITOs to find a more cost-effective option without compromising on critical coverage, or leverage the employers’ provided coverage.

“Check if your employer offers medical insurance as part of your employment benefits, and supplement this coverage with a private plan tailored to your specific needs,” he said.

Tan also urged policyholders to evaluate their overall financial situation and make adjustments to their budget to accommodate rising premiums while maintaining their health coverage.

He calls on regulators, healthcare providers, and ITOs to work collaboratively toward holistic solutions that address rising medical inflation. 

“Efforts must focus on creating sustainable strategies to manage healthcare costs and their impact on insurance and takaful premiums, ensuring affordability and accessibility for all Malaysians,” he said.

-- BERNAMA