KUALA LUMPUR, Feb 13 — Is this your first time buying medical insurance? Or are you thinking of switching to another plan?

How do you choose a medical insurance plan that is “just right”, both for your budget and to protect you from financial shocks from unexpected medical bills in the future?

Can it be as simple as “ABC”?

Here are some quick tips, based on the government-backed Financial Education Network’s (FEN) guide to buying medical insurance, also known as the “Medical and Health Insurance/Takaful (MHIT) Made Simple” guide:

Here are the ‘ABCs’:

• A – Assess your needs and ask the right questions.

It’s all about asking the right questions, and shopping around to get the most suitable medical insurance for you.

1. But first up, what kind of medical insurance can you buy?

You might be most familiar with medical insurance that pays for your private hospital bills (either it pays to the hospital directly; or you pay the hospital first and claim back from the insurance company).

But there are also other types of medical insurance that would be paying out money to you, to help you cope with other costs, such as not having an income as you cannot work while you are sick.

2. Does this fit withi your budget?

If you are buying your medical insurance while you are younger, the monthly premiums or amount that you have to pay every month may seem affordable to you.

But remember, it is always possible for the monthly premiums to go up in the future, such as when you are older; or when there is medical inflation; or when too many people have made insurance claims under the same policy.

So will you still be able to afford this?

3. Does this medical insurance meet your needs?

And how much coverage are you buying? For up to RM1 million of hospital bills per year, or more, or less? 

If you are thinking of buying an investment-linked medical insurance, ask your agent what it means, and how the investment performance might affect your insurance coverage.

Here is FEN’s more detailed list of questions that you should ask your insurance agent: https://www.fenetwork.my/wp-content/uploads/2025/11/Guiding-Questions-in-Choosing-Suitable-MHIT-Product.pdf  

• B – Browse options available

You can compare the different medical insurance plans available, including those with “co-payment” features and those without “co-payment”.

What does co-payment mean? 

You will have to “co-pay” or share the hospital bill with the insurance company: 

You will have to pay a deductible (a fixed amount) or a co-insurance (a fixed percentage) first, before the insurance pays for the rest of the bill.

Benefits of medical insurance with co-payment:

• Your monthly premiums will be cheaper (compared to medical insurance with similar coverage but no co-payment);
• In the long-term, your monthly premiums may go up less frequently and may go up by a smaller amount (since co-payment will encourage hospitals and individuals to be more responsible when prescribing and using healthcare services).

But before you decide on buying a medical insurance with co-payment features, consider this:

• Are you covered by your employer’s medical insurance? 

(If yes, you might be able to avoid having to use your medical insurance and forking out money from your own pocket to co-pay the hospital bill, if you tap on your employer’s insurance first. 

But note that your employer’s insurance only covers you while you are still working there and might have age limits.)

• When you actually need to go for medical treatment or be hospitalised in the future, can you afford the co-payment at that time? 

(Will you have the cash for it? Remember that you still have to pay the monthly premiums, besides the co-payment.)

Alternatively, if you choose a medical plan without co-payment, you will have to pay more expensive monthly premiums, and these premiums may go up more often and by bigger amounts.

Check the medical insurance plan’s product disclosure sheet to see what it covers and what it does not cover, and whether it suits your needs, and consult your insurance agent too. — Pix by Choo Choy May

• C – Choose wisely from options provided

Read the product disclosure sheet of the medical insurance plan.

Understand the terms and conditions.

Compare different plans.

Ask your insurance or takaful agent if you have questions.

Decide based on whether you can afford, and choose a plan that is most suitable for your needs.

You can get FEN’s full MHIT Made Simple guide here: https://www.fenetwork.my/medical-and-health-insurance-takaful/

FEN is co-chaired by insurance industry regulator Bank Negara Malaysia, and its partners include insurance companies, as well as insurance and takaful associations.

Other tools to help Malaysians decide better when it comes to their medical insurance and healthcare treatment

This “ABC” guide to buying medical insurance is part of the government’s wider effort called the RESET Strategy to tackle rising costs for private healthcare.

To increase transparency and serve as a price guide, Malaysia’s insurance and takaful industry had last month published the typical prices of 26 common medical procedures at local private hospitals based on 2024 medical claims, ranging from RM3,100 to RM33,400. 

You can also look forward to the insurance and takaful industry’s expected launch of a calculator this month, which will help Malaysians avoid financial stress by planning their monthly savings for premiums and co-payments for their medical insurance.

This calculator was developed with support from BNM and the Employees Provident Fund (EPF), and is expected to help Malaysians assess their insurance needs and plan their personal budgets.

Next year, all insurance and takaful companies in Malaysia must also offer a basic medical insurance (called the Base MHIT Plan) for either RM100,000 or RM300,000 annual coverage as one of their options.

 Malay Mail – Malaysia