Medical card vs critical illness insurance: A Malaysian guide | GOfinance
Breast cancer treatment in Malaysia can cost up to RM395,000, making health insurance a crucial safety net for your finances. With numerous options available, how do you choose the right one for your needs? Two common choices are medical insurance and critical illness insurance, each providing different forms of protection.
Comparing medical insurance and critical illness insurance
Both types of insurance offer essential support during challenging times, but they serve distinct purposes.
A Medical Card covers hospital stays, surgeries, and treatments, ensuring you won't have to pay out-of-pocket expenses for significant healthcare costs. Even if your employer provides coverage, having your own plan acts as a backup in unforeseen situations such as sudden unemployment or gaps in employer-provided insurance.
It’s important to note that getting medical coverage becomes significantly more challenging once you fall ill. Consider this example:
Andy works for Company ABC and has good medical insurance coverage. However, he is diagnosed with liver cancer at a critical stage. Initially, his company’s insurance covers his treatment, but after several months, he is unable to return to work. When he leaves his job, he loses his medical insurance and, due to his diagnosis, is now unable to secure a new policy. As a result, he must rely on his savings to continue treatment while facing a loss of income.
This scenario illustrates the importance of having your own medical insurance plan, even if you already have employer-provided coverage. In Andy's case, on top of a medical card, Critical Illness Insurance would also provide vital financial support during this difficult time.
Critical Illness Insurance focuses on offering a lump-sum payment if you're diagnosed with a serious illness. This financial support can help cover medical expenses, living costs, and income loss while you recover, effectively future-proofing you against unexpected health crises.
Here’s a quick comparison of both types of insurance:
Medical Insurance | Critical Illness Insurance |
Covers immediate healthcare costs | Provides a lump sum payment upon diagnosis of a critical illness |
Pays for hospital stays, surgeries, and treatments | Covers financial needs during recovery (e.g. living expenses, loss of income) |
Protects against out-of-pocket medical expenses | Focuses on long-term financial support |
Is it necessary to get both plans?Since medical insurance and critical illness insurance address different needs, the best approach may be to consider both.
What GOfinance offers:GOfinance is a comprehensive financial services hub within TNG eWallet. You can find various types of insurance plans available in GOfinance, including these two distinct health insurance products:
Med Insure | CI Insure |
A Medical Card that covers surgeries, hospital stays, and medical treatments | A Critical Illness Insurance plan for five major illnesses—cancer, heart attack, stroke, kidney failure, and coronary artery disease |
Annual limit of up to RM100,000 | Payouts of up to RM200,000 RM5,000/month of lifestyle assistance allowance, up to 3 months |
Coverage renewable until age 70 | Coverage renewable until age 70 |
Premiums start from RM30 | Premiums start from RM10/month |
When deciding between Medical Card Insurance and Critical Illness Insurance, the best answer might not be one or the other—it should be both. Together, they offer comprehensive protection against the high costs of healthcare and the financial challenges that come with long-term illnesses.
Take the time to assess your needs and explore the plans that will provide the most comprehensive coverage for you and your loved ones.
