{"id":8017,"date":"2021-10-05T00:00:00","date_gmt":"2021-10-04T16:00:00","guid":{"rendered":"http:\/\/www.comparehero.my\/blog\/?p=8017"},"modified":"2026-03-27T10:43:04","modified_gmt":"2026-03-27T02:43:04","slug":"medical-cards-healthcare-2","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/insurance\/medical-cards-healthcare-2.html","title":{"rendered":"5 Things You Should Know Before Getting a Medical Card in Malaysia"},"content":{"rendered":"

If you take a closer look at the risk of health issues and the rising costs of hospitalisation and medical care, ensuring that you and your loved ones are covered by a comprehensive medical insurance plan is as important as ever.<\/p>\n

Ex-Health Minister Datuk Seri Dr S. Subramaniam shared in 2016 that over a third of Malaysians were directly paying for medical services using their own money, an excessive figure that can lead to financial catastrophe. \u201cMalaysia has high out-of-pocket health payments due to the small number of people who have health insurance or medical benefits at work,\u201d he added in an article in the Malay Mail on 2 June 2016<\/a>.<\/p>\n

As public hospitals are over-utilised in most areas especially cities, investing in a health insurance plan for you and your family is critical to avoid landing yourself in a difficult financial position while still ensuring you receive the medical care and attention that you need.<\/p>\n

Before you decide on a medical card, here are 5 factors to consider to help you make the right decision:<\/p>\n

1. The difference between a standalone medical card vs a rider<\/h2>\n

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A medical card can be structured or sold as a standalone medical card or as a rider. A standalone medical card works as a term insurance, the coverage is activated every year as long as you pay the premium. As for a rider, it is bundled with an investment policy as an extra feature.<\/p>\n

For a standalone, the cost of insurance (premium) increases every year due to the increase of medical costs according to Malaysia\u2019s medical inflation rate. However, if you buy an investment policy with medical coverage as a rider, you are actually paying a higher premium during the first few years (depending on company) to cover the higher medical premium for your coverage period in the future.<\/p>\n

This is why your policy premium does not increase every year despite the medical inflation rate. The amount of the extra premium paid during the first few years will be used to cover the higher medical costs in the future. Throughout the tenure period, at least 46% of the premium left after deducting your insurance charges (medical, critical illness and life) will be injected into the company\u2019s fund for investment purpose.<\/p>\n

For example, at 50 years old, the cost of your medical card is RM 2,500 a year. Instead of having to pay RM 2,500 a year, you are still paying RM 2,000 since the first year of medical insurance coverage because the extra RM 500 cost of the medical card has already been covered by the extra premium you paid in the previous years.<\/p>\n

2. Comprehensive policies offer more benefits<\/h2>\n

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Today, an investment policy linked with a rider such as medical card, life insurance and critical illness are usually introduced to consumers as a comprehensive insurance policy. Unlike a standalone medical card, a comprehensive policy with investment-linked features may gain cash value over time and the policy will not be terminated easily.<\/p>\n

If you opt for a standalone medical card, coverage will cease once you stop paying the premium. As for a comprehensive insurance policy,  the medical card will continue to insure the policy holder as the extra premium paid still covers the cost of the medical insurance.<\/p>\n

3. Know your financial appetite and the value of the policy<\/h2>\n

As we\u2019ve seen so far, it makes more sense to buy a comprehensive policy linked with riders (than a standalone medical insurance) as it offers convenience and better coverage. However, plans may differ<\/a> depending on the insurance company.<\/p>\n

Understand these 4 basic factors before buying an insurance policy from any provider:<\/p>\n