Contact Us

Bahasa Melayu

< Medical And Health Insurance / Takaful

 

Understand Common Terms in MHIT

1. Annual Limit & Lifetime Limit

Annual Limit

Lifetime Limit
The maximum amount your insurer and takaful operators (ITOs) will pay for medical expenses in a single policy year*. This limit will refresh annually at policy anniversary. The maximum amount your ITO will pay over your entire coverage duration Once the limit is fully utilised, your policy will be terminated.

Example: Product A with annual limit of RM100,000 and RM500,000 lifetime limit

  • ITO will pay up to RM100,000 annually, capped at RM500,000 over the duration of coverage.
  • Once you have reached these limits, your medical coverage will end and you will have to purchase a new product.
Policy Year 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030
(A) Annual expenses RM0 RM70,000 RM150,000 RM200,000 RM90,000
(B) Claimable amount (Limit: RM100k) RM0 RM70,000 RM100,000 RM100,000 RM90,000
(C) Total lifetime expenses (Limit: RM500k) RM0 RM70,000 RM170,000 RM270,000 RM360,000
(D = A – B) Non-claimable amount

RM50,000

(exceed annual limit)

RM100,000

(exceed annual limit)

    *Policy year refers to one-year period starting from the effective date of coverage commencement. For example, if your policy commences on 1 May 2025, the policy year will end on 30 April 2026.

    While MHIT products with high limits is attractive, they cost more. Hence it is important to choose MHIT product based on your expected needs that is within your budget.

    2. Non-guaranteed renewal or Guaranteed yearly renewable

    Non-guaranteed renewal

    Guaranteed yearly renewable
    • Relatively lower premiums due to shorter duration of coverage
    • More suitable for individuals looking for short-term protection
    • Higher uncertainty as premiums and policy terms and conditions may bemodified by ITOs at point of renewal based on dividuals risk profile
    • Provides security for continued coverage
    • Renewability is guaranteed throughout coverage duration as long as you continue paying the premiums
    • Premiums may be revised to account for factors such as individual claims history, depending on the product features (e.g. no-claims discounts)
    • Premiums of MHIT products may be revised periodically to reflect shifting costs associated to medical inflation and claims experience.
    • Your decision should be based on your budget and how long you need coverage for.

    3. Standalone or Rider

    Standalone

    Rider
    • A standalone medical insurance policy/takaful certificate usually only covers your medical expenses. For instance, if you are hospitalised, this policy will cover your hospital bills, surgery costs, and other related medical expenses up to the policy’s limit
    • Additional protection for medical needs to supplement the base life insurance/family takaful policy
    • Riders allow customisation of insurance coverage with additional premiums e.g. cover extra benefits, include additional family members, exclude specific conditions

    4. Free-look period & Waiting period & Grace period

    Free-look period

    Waiting period

    Grace period
    • The duration you are given to cancel your newly-bought policy. Any premiums paid will be refunded
    • The time you have to wait after starting or reinstating your insurance or takaful plan before you can make a claim
    • Additional time given after premium payment is due. During this period, you can still make the payment without being charged a penalty, and your coverage will remain active