How Much Medical Insurance Coverage Do You Need?

Malaysia's yearly medical costs are rising by 14.2% on average, compared to the general inflation long term average of 2.75%. This means that medical costs are increasing higher than the overall increase in prices and cost of living.

With the rising medical cost, it's important to ensure you're adequately covered if and when you need it. So let's break down just how much medical insurance coverage you need in Malaysia to be financially protected against medical bills.

Current medical costs

Malaysia’s public healthcare is subsidised by the government and is cheaper than a private medical centre. However, with the cheaper cost, one can expect longer wait times. Private hospitals typically offer higher quality services but that doesn’t mean that private hospitals provide better medical treatment than government hospitals.

To narrow down how much medical insurance coverage you might need, you would need to ask around or search specifically for the information by hospital instead. The table below is a compilation of the estimated treatment cost estimates. Do note that for private hospitals, the price range can vary greatly depending on the location, services and treatments.

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Given examples above, it’s clear that even a short hospital stay for surgery can quickly add up to a lot of money.

Future medical costs

Considering the medical cost inflation rate, if a surgery costs RM30,000 today, in 7 years, it could cost nearly RM80,000. This goes to show the importance of having adequate medical insurance coverage, especially if you prefer private hospitals over public ones.

How much coverage do you need?

Determining the exact amount of coverage depends on several factors, including your age, health status, and financial situation. Here are some general guidelines:

Rule of thumb: Have a sum assured of at least 2 to 3 times your annual income.

Future-proof coverage: To truly safeguard against future costs, consider a policy with higher or increasing coverage over time. This takes into account the medical inflation rate and ensures that you won’t be caught short as prices rise.

Affordability: Consider your budget and choose a policy that offers a balance between affordability and comprehensiveness, so that you can keep the coverage in the long run.

Consult and review: Consult with a licensed insurance agent to get a more detailed guidance on how much coverage you need. Reach out to one of our wealth advisors here. Ask, understand, and review the plans proposed - what is covered, what is excluded, with what terms and conditions so that the medical insurance coverage can suit your budget and needs.

Find a medical insurance plan that does just that with our range of medical insurance plans here.

With medical costs on the rise, ensuring you have adequate medical insurance coverage can provide financial security, and the peace of mind that you and your family will be protected from the financial burden of unexpected medical expenses.