KUALA LUMPUR: The Malaysian Financial Planning Council (MFPC) has advised policyholders impacted by premium adjustments to reconsider canceling their insurance policies.
In a statement issued today, the MFPC highlighted that while public healthcare serves as an alternative, policyholders should carefully consider potential drawbacks, such as longer waiting times for consultations and limited access to preferred treatments or facilities.
“Insurance protection is a cornerstone of financial planning, and losing coverage could leave individuals vulnerable to financial risks in the event of unexpected circumstances,” the statement read.
The council further encouraged policyholders whose insurance policies have been terminated or lapsed to promptly reach out to their insurers and reinstate coverage within the specified window period under interim measures.
“Policyholders should consult with their agents, financial planners, or advisers to comprehensively assess their current policies,” the MFPC advised. “Professionals can help identify areas where benefits may be adjusted to better meet personal needs and budgets.”
For individuals considering new or upgraded policies, the MFPC recommends carefully reviewing the proposed benefits to ensure alignment with both financial goals and the ability to sustain premium payments.
“Upgrading or replacing policies can be risky, especially if it leads to the denial of claims for pre-existing conditions during waiting periods or due to exclusion clauses. Professional guidance is essential in navigating these choices,” the MFPC added.
The statement also acknowledged the interim relief measures introduced by Bank Negara Malaysia, but emphasized the need for long-term strategies to address the underlying issue of rising medical costs.
“The expected 15 percent increase in premiums for 2025 significantly outpaces global and regional trends,” the MFPC said. “We urge the Ministry of Finance, the Ministry of Health, Bank Negara Malaysia, and all relevant stakeholders to collaborate on controlling medical cost inflation and developing insurance products that align with value-based healthcare principles, ensuring both affordability and sustainability.”
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