Do I Need To Own A Medical Insurance Since I have It From My Employer?


This topic always came out from my clients/customers mouth when we are talk about this Medical Insurance Coverage.  Although this Medical Insurance Coverage is very important to every one of us but not everyone think to own it.  Some said no need to buy or own it as they have provided/covered by their employer if they are works in the medium/big company.

You may also have your own personal medical card right?  But no one told you about this… Now, you can have TWO Medical Cards, offering two separate coverage for the same purpose.  It this allowed and which one will override which card you have?  Do you need to cancel one?  Anyway, you can maintain it.

This are interesting and let’s find out what a medical insurance plan is all about…  There are two types of medical protection available in the market:

Medical Plan/Card – it’s covers hospitalisation and surgical costs
Hospital Income – It’s provides income for you in the event of your hospitalisation.



Individual -vs- Group Medical Insurance Coverage Plan


1. Which One Do I Use First?

Now you have an ideas what is the difference between the medical plan you get from your employer, and the one you get on your own.  The explanation below:


2. The Similarities?

The similarity between an individual and group medical coverage is under the same function.  A medical plan in regardless of whether it is an individual or group, the main objective is to protects you by covering for the treatment costs incurred in the event of:

An Accident
An Illness
A Hospitalisation/Surgery/ICU

The medical plans also provide insurance coverage on death or total permanent disability where your family or dependents will receive a lump sum pay out if ether were to happen to you.


3. The differences?

Depending on your takaful/insurance providers and policy type, there may be differences between the plan you have on your own and the plan form your employer.  Maybe the different between both coverage plan:


Annual limit
What is the to total benefits the takaful/insurance providers will pay in a year for a medical insurance plan?

Lifetime limit
What is the maximum claimable amount throughout your life time?

Daily room and Board rate
What the room type are you eligible based your plan?


To know your limits for the above is very important as it would help you to plan your finances in the event of a medical emergency.


4. Which Plan Do I Use First If Admitted?

As we all know that group coverage plan have a lower annual limit compare with individual coverage plans.  Which plan you should use first depends on:

The severity of your medical condition
The possible treatment options
The necessity of operation

In the event of something very serious requiring inpatient surgery, hospitalisation and treatment that exceeds your group medical plan coverage, you can use the group coverage first and cover the remaining costs with your individual plan.  Below the example:

Group coverage – RM20,000
Individual coverage – RM100,000
Actual cost of surgery & treatment – RM50,000
Cost of surgery and treatment will be covered RM20,000 from group and remaining balance RM30,000 from individual.


5. Which Plan Will Override The Other?

Both individual and group plans will not override the other and can operate in tandem.  If your group coverage allows you a higher room & board rate, you can definitely utilise that in the event of hospitalisation without affecting the individual coverage.  However, if both individual and group coverage have the same room & board rate, this is no difference in which you use, as long as it is within the given rate.



Should I Need To Buy My Own Medical Insurance?

You should start purchasing your own medical insurance as soon as you are able to it as benefits of getting a medical insurance early:

The younger you are in an age to secure the plan, the more affordable the premium you enjoys.
To protect yourself from arising cost of medical treatment
Each individual is entitled to tax reliefs of up to RM3,000 per year for medical insurance premium/contributions.



Do You Want To Get Covered?








The above articles are intended for informational purposes only.  Mi Adviser accepts no responsibility for loss which may arise from reliance on the information contained in this articles.







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