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Guide to Hospitalisation and Surgical Insurance in Malaysia
What is Hospitalization & Surgical (H&S) Insurance?
Provisions of Hospital Admissions
Additional H&S Insurance Benefits
List of H&S Insurance from Various Insurance Companies in Malaysia
Why do People Delay in Purchasing H&S Insurance
Frequently Asked Questions (FAQ)
How to Select Hospitalization & Surgical (H&S) Insurance in Malaysia
(H&S insurance also known as medical insurance, health insurance, medical & health insurance or medical card insurance in Malaysia.)
Structure of H&S Insurance (updated on 2 November 2009)
There are three major types of H&S insurance in Malaysia, namely:
(I) Stand-alone H&S insurance
(II) H&S insurance attached to investment-linked insurance or universal life
(III) H&S insurance attached to whole life or term insurance.
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(I) Stand-alone H&S insurance
Like its name, this type of H&S insurance is an independent insurance and does not attach to other types of insurance. Almost all general insurance companies and a few life insurance companies in Malaysia offer this type of H&S insurance.
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Advantages:
a) No other insurance premium is involved No other insurance premium like death or total & permanent disability premium will be incurred. Therefore, your insurance premium commitment is lesser.
b) Premium rates are transparent Premium rates for H&S insurance can be easily found in product booklets or brochures unlike H&S insurance attached to investment-linked or whole life insurance.
c) Long term service by insurance intermediary The insurance intermediaries will continue to receive their commission once the policy holder renews his policy.
Unlike standalone H&S insurance, no commission is given to an intermediary from year-7 onwards for H&S insurance attached to investment-linked, whole-life and term insurance. This will probably reduce the quality of service of the intermediary.
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Disadvantage:
a) Continue paying the premium You will have to continue paying the annual premium even when you are diagnosed to have one of the 36 critical illnesses covered or become totally & permanently disabled.
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For inquiries on various H&S insurance plans available in Malaysia, kindly email your name, handphone number and email address to us at MalaysiaInsuranceGuide@yahoo.com
(II) H&S insurance attached to investment-linked insurance or universal life
This type of H&S insurance is offered by only Malaysian life insurance companies. It is attached to a whole life investment-linked insurance policy as a supplementary benefit.
The minimum annual premium for an investment-linked insurance is RM1,200 or RM1,800 depending on the practice of an insurance company.
The insurance premium for H&S insurance is included in the annual premium, but the investment value will be reduced.
Many insurance buyers overlook this insurance premium. So remember to find out the insurance premium for the H&S insurance before putting your signature on the proposal form.
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Advantages:
a) Waiver of premium benefit Some life insurance companies will waive the future premium of H&S insurance if you are diagnosed to have one the 36 critical illnesses covered or become totally & permanently disabled. Additional premium is required to add this benefit to your policy.
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Disadvantages:
a) Policy lapse risk For most of the insurance companies, if the main policy lapses, the H&S insurance will lapse too. Only a few companies allow the H&S insurance to be continued even the main policy is lapsed.
b) Number of benefits covered Benefits covered by certain insurance companies are stagnant. So do check out whether the benefits covered are increased from time to time.
c) Service quality of insurance intermediary in the long run Unlike standalone H&S insurance, no commission is given to an intermediary from year-7 onwards for H&S insurance attached to investment-linked, whole-life and term insurance. This will probably reduce the quality of service of the intermediary.
The intermediaries may face the difficulty to continue to serve the policy-holders after they ceased to receive commission from year-7 onwards.
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(III) H&S insurance attached to whole life or term insurance
This type of H&S insurance is only offered by Malaysian life insurance companies. It is attached to a term insurance policy as a rider.
Term insurance is also known as temporary life insurance. A term insurance usually covers a minimal amount of sum assured like RM5,000 or RM10,000. It is payable when death occurs.
The annual insurance charges for RM5,000 term assurance for a person at age 25 is about RM30, whereas it is about RM90 for a person at age 50. Find out the annual insurance charges for the minimal amount of sum assured before making your decision.
The period of coverage, typically 10 years, 20 years or until age 60, 65 or 70.
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Advantage:
a) Have life insurance coverage If you need a life insurance coverage and at the same time looking for H&S insurance offered by life insurance companies, then you can go for H&S insurance which is attached to whole life or term insurance. |
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Disadvantages:
a) Policy lapse risk When the period of coverage expires, the H&S insurance expires too. For most of the insurance companies, if the main policy lapses, the H&S insurance will lapse too. Only a few companies allow the H&S insurance to continue even though the main policy has lapsed. b) Service quality of an insurance intermediary in the long run Unlike standalone H&S insurance, no commission is given to an intermediary from year-7 onwards for H&S insurance attached to investment-linked, whole-life and term insurance. This will probably reduce the quality of service of the intermediary. |
For inquiries on various H&S insurance plans available in Malaysia, kindly email your name, handphone number and email address to us at MalaysiaInsuranceGuide@yahoo.com