There are three important features that always confuse people when it comes to medical insurance. These are: Co-insurance, Co-payment, and Deductibles.
Independent financial planner, CF Lieu from HowToFinanceMoney.com shared about these jargon here:
How do they work? Let’s look at “Deductibles” first. How do Deductibles work? Let me give you a simple example for people who are currently employed.
Likely, your company will provide you with an insurance coverage – this is called a Group Term Company Coverage. Company medical insurance has an annual limit. You probably don’t feel it, but it is being deducted from you. To find out policy which works best for you, you can make the comparison here.
Let’s say your company insurance has an annual H&S (Hospitalization and Surgical) limit of RM 15,000. This means that anything beyond RM 15,000 is not covered – you have to fork out your own money. The company insurance will bill you back sooner or later for any amount that goes over RM 15,000.
Normally, you have to pay anything above RM 15,000 on your own except when you have a second medical policy. You buy this on your own, you cover it on your own, and it will be on a reimbursement-basis.
So, although you’re not covered by your company’s insurance for anything over RM 15,000, there is a policy that you can buy for yourself. You have to pay for it first, but you can get a reimbursement from the insurance company of your second medical card.
Now, the first RM 15,000 is dependent on your company, right? Some companies have very good insurance, maybe even have RM 50,000 per annum of coverage. Some companies might only have RM 10,000 to RM 15,000 per annum.
If you are already covered by your company, you can just cover the rest on your own, which would be relatively cheap because your second card would not need to cover your medical bill from zero under to RM 15,000. This way, you get to save on cost.
For Premium Webinar Members (PWM), you can access the full recording of the session about Medical Insurance Secret Revealed – Part 2: