Medical card vs critical illness insurance: A Malaysian guide | GOfinance

Imagine this: you're going about your daily life — working hard, caring for your family, saving for the future — when suddenly, a serious illness strikes. One hospital visit becomes several. Your energy fades, your income drops, and the bills don’t stop. 

Would your finances survive it? 

Sadly, nearly 60% of Malaysians still don’t have insurance or takaful coverage, leaving them vulnerable to both health and financial shocks. Many aren’t even sure where to begin, especially when it comes to choosing between medical insurance and critical illness insurance. For example, breast cancer treatment in Malaysia can cost up to RM395,000, which is a staggering amount that could wipe out years of savings without adequate protection. 

A medical card and a critical illness insurance may sound alike, but they play very different roles in protecting your health, your income, and your future. 

Comparing medical insurance and critical illness insurance 

Both types of insurance offer essential support during challenging times, but they serve distinct purposes. 

What is a medical card? 

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.  

What is critical illness insurance?

A critical illness insurance focuses on offering a lump-sum payment if you're diagnosed with a serious illness. Typically, this includes serious illnesses such as cancer, heart attack, stroke, and the likes. This financial support can help cover medical expenses, living costs, and income loss while you recover, effectively future-proofing you against unexpected health crises. 

It’s also important to understand that this lump-sum payout doesn’t come with fixed rules on how it should be spent. Unlike medical insurance, which only reimburses hospital bills, critical illness insurance gives you the flexibility to use the money in any way that supports your recovery. This could include covering everyday expenses while you're on medical leave, paying for childcare or household help, or even trying out alternative treatments that aren't included in traditional hospital plans. The freedom it offers can make a big difference during a stressful and uncertain time. 

Here’s a quick comparison of both types of insurance:  

The difference of a medical card and critical illness insurance

Is it necessary to get both medical insurance and critical illness insurance? 

Since medical insurance and critical illness insurance address different needs, the best approach may be to consider both. Medical insurance typically covers hospitalisation, surgery, and treatment costs, ensuring that your medical bills are taken care of when you’re admitted to a hospital. It’s designed to protect you from high out-of-pocket expenses during emergencies or ongoing treatments. 

However, medical insurance usually does not provide any income replacement if you’re unable to work. That’s where critical illness insurance comes in. It gives you a lump-sum payout when you’re diagnosed with a serious condition, allowing you to focus on recovery without worrying about day-to-day living expenses, loan repayments, or caregiving costs. 

By having both types of insurance, you can ensure better financial protection from different angles, such as hospital costs, income disruption, long-term recovery, or even alternative care. Together, they form a more complete safety net so that you're covered not just for treatment, but also for the lifestyle and financial adjustments that often come with serious illness. 

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:  

Take the time to assess your needs and explore the plans that will provide the most comprehensive coverage for you and your loved ones. Still need some help choosing a plan? Here’s a simple guide to help you. 

How to choose a medical card and critical illness insurance plan

Choosing between medical insurance and critical illness insurance doesn’t have to be confusing — but it does require a closer look at your needs, lifestyle, and financial situation. 

Here’s a simple guide to help you decide: 

1. Understand your risk factors 

Start by asking yourself: 

• Do you have a family history of critical illnesses like cancer or heart disease? 
• Are you the sole breadwinner in your household? 
• Do you work in a high-stress or high-risk environment? 

If you answered yes to any of these, a critical illness insurance plan becomes especially important — because you may face income loss during recovery, not just medical bills. 

2. Look at your current protection 

Check what coverage you already have: 

• Do you have medical insurance from your employer? If so, does it cover all your needs or is it basic? 
• Do you have any critical illness protection at all? 
• What’s the annual limit or lifetime limit of your current policy? 

Many people mistakenly believe employer coverage is enough — but it may not cover all hospital costs or offer any payout if you can’t work. If your current medical plan is limited, you may want to top it up with a personal policy. And if you don’t have critical illness coverage, that’s a clear gap to fill. 

3. Consider your finances and dependents

• Could you manage daily living expenses if you had to stop working for 6 months?
• Do you have children, elderly parents, or a partner who depends on your income?
• How much savings do you have — and how long would they last? 

Medical insurance will help cover your treatment costs, but it won’t replace your income. On the other hand, critical illness insurance won’t cover hospital bills, but gives you financial flexibility to care for your family, take a break from work, or explore treatment options. 

In short — if you don’t have enough savings or a second income stream, you likely need both. 

4. Match the plan to your budget and lifestyle

Once you know your needs, choose plans that: 

• Fit your monthly budget without putting strain on your other expenses
• Offer transparent, easy-to-understand benefits
• Are simple to activate (especially important if you're new to insurance)
• Don’t require lengthy paperwork or medical check-ups 

That’s exactly what TNG eWallet’s Med Insure and CI Insure plans are designed for — giving you solid, affordable protection without the hassle. 

Don’t leave your future to chance 

Life is uncertain, but your protection doesn’t have to be. Whether you’re single, starting a family, or planning for retirement — the right insurance gives you confidence to face whatever comes your way. 

Medical insurance covers your treatment. 
Critical illness insurance helps you survive the journey.