Is just having a medical card enough, or do you also need a critical illness (CI) insurance or takaful plan? Are critical illness insurance or takaful just optional good-to-have plans? While both options provide protection, they serve different purposes. In this article, we will address the differences between the two types of plans, and the purpose and benefits of each.
In Malaysia, medical insurance / takaful is more widely known as medical card. This card will help to cover your medical bills, such as hospitalisation, in-patient and out-patient treatments, specialist consultations, and medications.
There are many plans out there in the market, offering different annual limit options, coverage types, and benefits. When comparing a medical card, you may want to take note of deductible and co-insurance / takaful options offered, as choosing this option will translate to savings on the monthly premiums/contribution.
A medical card is necessary in your wealth protection portfolio as it allows you to access quality healthcare services without having to worry about expensive medical bills while you are recovering. This also means that your hard-earned savings are protected from the high cost of hospitalisation.
Critical illness insurance / takaful is a type of plan that provides a lump-sum payout to the certificate owner or person covered upon diagnosis with a critical illness
| Medical Card | Critical Illness Insurance/Takaful |
| Medical Card | Critical Illness Insurance/Takaful |
Purpose | Covers the cost of treatment, medication or surgery incurred when you are admitted to hospital, including pre and post hospitalisation | Provides lump sum payout upon diagnosis of one of the covered critical illnesses. Payout can be multi-pay or single-pay, where multi-pay covers you for relapse and multiple CI conditions |
Benefits | Covers for medical costs related to hospitalisation | Lump sum payment received can be used for any purpose, such as paying for any other additional expenses including living expenses |
Premiums / Contribution | Premiums / Contributions are step-up, whereby the amount you pay increase with your age | Amount is leveled, where it’s the same throughout lifetime |
So, you have an existing critical illness coverage and chances are, you are also wondering the same thing. Is a medical card necessary for you? Here’s why you should get yourself CI coverage even if you already have a medical card.
1. There may be gaps in your existing medical card coverage
While most medical cards provide some form of critical illness coverage, there may be expenses incurred that the plan does not cover, or there could be a limit on the coverage it provides. For example, many medical cards don't cover outpatient physiotherapy, alternative medication, psychiatric treatment, or hospital companion bed.
If you already have a medical card, it's important to understand what’s covered, and if there are any gaps in coverage. If there are gaps in coverage, then getting additional critical illness insurance / takaful can help ensure that you and your family are financially protected if you become ill.
2. Covers for deductibles and co-insurance / takaful
Deductibles and co-insurance / takaful are features in the medical plan to help keep the premiums / contributions you pay more affordable and bring about savings. However, this means that there are out-of-pocket medical costs that you have to incur before the plan takes care of the rest of your medical expenses.
A deductible is the amount of money you are required to pay before your medical card covers any of your medical expenses. Co-insurance / takaful is the percentage of your medical bill that you are responsible for paying, even after your deductible has been met.
With the coverage from critical illness insurance / takaful, these out-of-pocket expenses like deductibles and co-insurance / takaful can be covered with the payouts.
3. Pay for daily living expenses
If you are diagnosed with a critical illness, and are unable to continue to work, the lump sum payout from your critical illness insurance / takaful can help to cover the loss of income, and any additional expenses incurred when living with a critical illness such as a healthier diet and getting extra help. These are things that a medical card does not cover.
Wouldn't the payout from critical illness insurance / takaful suffice to cover the medical expenses incurred from hospitalisation?
Here are reasons why just a CI plan alone is not sufficient.
1) Critical illness insurance / takaful only provides payouts for the covered CI
Coverage from critical illness insurance / takaful is only limited to the covered CI in the plan. To ensure complete coverage, the medical card will help take care of the rest of the medical costs incurred.
2) There are other causes of hospitalisation
The top 10 causes of hospitalistion in Malaysia include diseases of the respiratory, digestive and circulatory systems, injury and poisoning. Therefore, it’s important to ensure that you have comprehensive coverage and have these situations covered as well.
Sarai is a 35-year-old woman who has both a medical card and a CI plan. She recently went for a routine check-up and was shocked to find out that she had been diagnosed with breast cancer. She was immediately referred to a specialist for further treatment and tests. Sarai is fortunate enough to be covered by a medical card that covers the cost of her medical bills. She was then able to undergo surgery and the necessary chemotherapy and treatments without having to worry about the financial burden. The FWD Medical Care+ plan allowed her to seek a second opinion and alternative treatment, and the deductibles in her medical bill were also waived under this plan since breast cancer is a major claim. Post-surgery, she was also able to get covered for physiotherapy treatments to improve her recovery.
Sarai is also thankfully covered by FWD Big 3 Critical Illness, with cancer being one of the covered conditions. She received a payout of RM100,000 which allowed her to take time off from work to recuperate from her surgery. It’s estimated that it takes around 6 to 8 weeks to heal from breast cancer surgery. With the payout, she could purchase quality nutrition and join a gym to help with physical therapy.
The contributions she paid for both her plans were RM97 and RM27.82 per month for FWD Medical Care+ and FWD Big 3 Critical Illness respectively, which have both saved her from the financial impact of a diagnosis.
A critical illness plan is not an optional extra, and a medical card is the most basic defense you need in your wealth protection planning. Don’t leave yourself unnecessarily exposed to the cost of hospitalisation or critical illness. Make sure that you are comprehensively covered in the case of either event.
At FWD Takaful, we provide coverage for both critical illness and hospitalisation. With FWD Big 3 Critical Illness, you receive a 100% lump sum payout upon diagnosis of cancer, heart attack or stroke, from as low as RM10.27/month, priced at 40% the cost of a regular critical illness plan.
Our medical takaful card known as FWD Medical Care+ also provides comprehensive medical coverage that covers inpatient and outpatient medical treatments and covers you beyond the standard benefits such as alternative medical treatments, physiotherapy and more. You can also enjoy savings of up to 45% on your contribution when you choose the deductible option. Get a takaful medical card quote now.