Understanding Medical Revision

To ensure you are always adequately protected, Prudential regularly reviews our medical plans against the current healthcare costs. Due to escalating healthcare costs and medical inflation that has resulted in higher claims for the medical portfolio, Prudential may undertake this revision every year, if necessary, to help ensure your long-term medical protection will be there for you when you need it.

The additional premium/ top-up is required to cover the increased insurance charges. With the increase in insurance charges, more units will be deducted from your policy account value to pay for the higher insurance charges. If you continue to pay the same amount of premium after the new premium effective date or do not top-up your policy after this revision, it is possible that your policy’s sustainability may be impacted and the policy may lapse earlier than expected. As for a Universal Life policy, No-Lapse Guarantees will be affected if a customer continues to pay the same amount of premium after the new premium effective date.

How insurance works and is calculated, is by pooling and spreading the risks among all those who are insured in the portfolio. Health/medical insurance is no different. When you purchase health insurance, you join a group of other customers who have similar risk characteristics (such as age group, plan type, gender etc.). We (the insurance company) cover the entire group rather than individuals. Similarly, when we review our medical portfolio, it is conducted across the board.

The insurance charges and/or premium rates of our medical plans are not guaranteed, as shown in our product materials and product illustrations, as well as the policy. They can be revised provided that prior notice is given to customers (according to the notice period stated in the policy document).

All coverage and benefits remain the same.

The revision of premium and insurance charges take effect from the policy anniversary date. Customers will receive their Revision Notification Letter at least 30 days before their policy anniversary date, depending on the type of medical plan.

There are a variety of options that may apply to your specific situation. Listed below are some of the options you may wish to consider in reviewing your current policy coverage and affordability: -

If you would like to review your existing coverage or consider the above options that may better meet your protection and financial needs, please do not hesitate to reach out to your Prudential Wealth Planner or Bank Representative.

Deductible or Med Saver is usually a fixed amount you pay out of your pocket for medical expenses before your medical plan starts to pay out. In the case of a RM300 Deductible or Med Saver amount, you will have to pay a fixed amount of RM300 of total expenses covered under your policy for a disability (excluding the cost of daily room & board). The remaining balance of eligible benefits will be paid by Prudential up to the annual and lifetime limits, subject to reasonable and customary charges. Please refer to your policy document for more details.

We continuously engage and collaborate with our healthcare providers to maintain high-quality care at preferred rates. One of our key initiatives is PRUPanel Plus, a nationwide network of close to 100 carefully selected top panel hospitals and specialist centres, designed to provide our customers with better value and care. Additionally, we actively participate in ongoing discussions with the Life Insurance Association of Malaysia (LIAM), Ministry of Health (MOH), and the Association of Private Hospitals of Malaysia (APHM) to address escalating healthcare costs.

Every year, we evaluate our medical portfolio to align with current healthcare costs so we can ensure ongoing protection for you and your loved ones. However, the trend of rising medical inflation and claims utilisation has negatively impacted the long-term sustainability of the medical portfolio.

Therefore, it is necessary to review the insurance charges and/or premium rates of your medical plan this year. This ensures that your long-term medical protection remains reliable and available when you need it.