Still not so understand how does this co insurance work. Assuming my monthly premium quoted from both GE and Pru around RM250 monthly, wouldn’t GE medical card seems stronger because no co insurance?

is "EVERYTHING Else are the same" except the co insurance part?

If everything else is set the same, sure. For example:

1. same annual limit
2. same lifetime limit
3. same room and board

etc. If all else are the same, and P has co-insurance while GE does not, then sure, GE would seem to have a better proposition

But when I made my comment, I was just comparing co-insurance vs full-coverage of a single medical plan from the same company and with all the same coverage.

Put it this way, for a company, having a full-coverage can end up being expensive, and will pass the cost to the customers. The trick is managing the product property (changing the terms and conditions), managing the hospitalization, etc.

Yes, it seems everything else is the same except Pru have co insurance.

1. Annual limit: GE - RM1,320,000 and Pru no annual limit when I asked my agent
2. Lifetime limit: GE unlimited and Pru goes by MVP RM1mil, is that my lifetime limit with Pru?
3. Both also same room and board of RM200

How do you state that having full coverage can end up being expensive? Maybe I am zero knowledge about this insurance thing. I seeing both monthly premium of med card is the same amount.

Because when there are no co-insurances, clients will more likely drop by the hospitals and enjoy their services for the slightest of illness. That is fine, nothing illegal with that.

But insurance works based on law of large numbers. When the numbers of contributors are not large enough to cover the claims, the rates have to be increased across the board

With co-insurance the insurance company gets to reduce the in-patient claims by limiting or reducing the claimants to only those who are seriously ill

Also note that there are people who abuse their insurances. If caught there will be repercussions, but if the abuse is prevalent and not controlled, the cost of claims will increase for the company and you can expect that the company will increase their rates for all their customers

It is important to buy insurance from companies that are known for their good management. Because if the management is not strong, they may not have a good claim controls, and when that happens the funds will deplete quickly.

One sign (and i am not pointing fingers) to bad management is that the company is run badly that it couldn't survive on its own - thus they get bought over.

This post has been edited by wild_card_my: Apr 20 2019, 11:33 AM

Oh I understand finally. Thank you for explaining to me. It seems there’s pro n con on each med card and I’m quite sold to high annual limit and lifetime unlimited from GE actually. Especially my partner who is having GE med card, asking me why my Pru insurance, I still need pay RM300 when I admitted to hospital one time. Asking me what is the point paying RM300 when I paying my monthly insurance, you get the picture.

What this meant is the premium payable will be on a same amount for the whole period, which is normally an ILP policy.

However, do take into consideration that not all ILP are built the same, the premium may increase in the future if there is insufficient cash value.

ILP will have a more riders that you can add on in the long run with a lower overall cost and having more benefits for yourself than just a standalone by itself

If overall the benefit with GE is better, take GE

Basically having a co-insurance vs non co-insurance

You pay lesser premium charges for with co-insurance policies but you’ll always have to fork out RM300 whenever you get admitted to the hospital.

Whereas with no co-insurance, it’s more hassle free not having to fork out additional money every time you get hospitalized.

When your agent says their is no annual limit for the prudential medical card, your RM1 mil is the annual limit, whatever exceeds that amount, you will need to pay for it.

Don’t have to be confused about the “marketing” package by the insurance company

As per above explanation.

Let’s just say insurance company want you to share the cost of insurance with them, so when you share the cost with them, they are willing to charge you lesser.

Then you will need to do some mathematics on how much co-insurance / deductible do you need to pay every time for hospitalization before the insurance company cover the other balance amount.

Some insurance plan has high deductible e.g 20k - 60k, so which means you will need to pay RM20k - 60k of the hospital bill before the insurance company pays for the rest. But you get to pay super cheap premium for such insurance.

But again is that what you want ? Have an insurance policy but yet have to worry about paying high deductibles for it even though you can say “I have a very cheap insurance”.

Basically you get what you pay for just like everywhere else. Can’t expect pay “Cheap” premium and expect “Superb” insurance coverage without drawbacks.

With that being said, just go with the company medical card that you feel more convenient with.

Yea, you have point here. My only dilemma is I keep Pru more than 5 years. If suddenly change to GE, feel like restart everything, so I question myself worth it or not? And is quite hassle always have to pay this RM300 if wanna get medical claim. but again will this co insurance able to protect my insurance from the cost of insurance in future?

if existing company allow you to upgrade to a better one, then that's always better, if not, if you gotta change, then you gotta change it.

It's just like driving an old car, you got an attachment to it, buy new car got new depreciation to start over but you got a better & newer car. How to compare ?

Takkan I say new car no good ? you're the one driving the car, you should feel it rather than me

Hi,

You can't put it that way. Co-insurances have their merits, it allows people with limited funds to insure the most expensive portion of their illnesses. Insurance is not about cheap or expensive, it is about planning against the risk that you are facing; and there are many ways to plan against this risk, there are no right-and-wrong answer, but as someone who plans other people's finances, you have to be careful about the advice that you are giving.

Just because the company that you are representing (and I am not just referring to you) has full-coverage medical policies, doesn't mean you have to discount any other alternatives. For example, Prudential has both full and co-insurance coverage, but you won't catch me recommending one over the other. I will just show the quotes for both and let the customers decide.

Likely, but nothing is guaranteed. Co-insurance was introduced to control the costs. Is RM300 too much to pay if your medical bill is RM10k?

The P medical card is 5 years old? Is the GE one that you compared to newer?

For the ILP medical card, if I pay the premium cheaper at the beginning, later like after few years time,when I have more budget, I can put more money in the ILP saving part. This will be better right？

Thanks

Technically you can do so, however the amount you may need to top up will be higher than doing it initially because you have loss "Time" factor in investing the amount.

Time x Money = Investment

Assuming investment target is 100,000

1) 25 years x 4,000 = 100,000

2) 20 years x 5,000 = 100,000

As you can see the above example, you may need to dump in 1,000 more in 5 years difference in order to achieve the same amount.

read this tnc on one of the site....of MVP bonus....

"Med Value Point increases at 2% of the initial Med Value Point
at the end of every 2 policy years
provided no claim has been incurred during the 2 policy years.
Applicable to plans with Hospital Daily Room & Board of RM300 and above"

just not sure if this is applicable to your mentioned plan.....

https://www.prudential.com.my/en/our-produc...y-medical-plus/

When the premium was set during the quotation, the system has already taken into account of the "investment portion" required to maintain the policy, including the normal inflation costs going forward. This is presented in the schedule in the quotation, look for Cost-of-insurance (COI). However, this COI is NOT fixed, it can change and will likely change.

Following what I said above, some ILPs allow you to "add buffer", that is to pay more than what the system require you to. Doing this will increase the "slack". All the extras that goes to slack will go into the investment portion.

So this is what you are doing, you are trying to add "slack". In my professional opinion, slack is not important. You are better off putting this money in your own investment that you can monitor more easily.

Unless you are upgrading your policy with new or additional riders, there is no need to increase the investment amount in ILPs.

Thanks for the input.

Thanks again.

Nice way to put it.


Yea. My Pru is around 5 years old. Last year only upgrade my med card to pruvalue med with med saver RM300. Recently my family member bought insurance from GE and explained to me her insurance coverage. I check with my Pru agent and he told me time to upgrade my life insurance because at that point 5years ago, my life assured is below 100k . My Pru med card cover me until 70 years old only. That’s why before I wanna upgrade my Pru,I was comparing to GE, what if I change to GE if GE offer better and I affordable to pay monthly premium. Knowing Pru, if I wanna upgrade age coverage to 80 or 90, the premium gonna be pricy. But what if I can get better coverage in GE and med card up till 99. That’s the story...

I would advise to get medical card that can last atleast 80 and above considering the lifespan nowadays for Malaysian has increased compared to the past.

Yes, that's what I planning to do next. Comparing both Pru and GE. GE until 99 years old le.. Hmm...