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What are the factors affecting medical insurance?

Increased life expectancy, evolving lifestyles, technological advancements in medicine and better access to quality healthcare are among the factors influencing the rise in healthcare costs.

To get a better understanding of the revision of your insurance charges and premium, watch this video.

Medical Revision

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Why are my insurance charges and / or premium rates being revised?

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.

Medical Revision

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Why are my insurance charges and / or premium rates being revised?

Why do I need to pay the additional premium / recommended top-up?

I have not made any claim. Why are my insurance charges and / or premium for my medical plan being revised?

Impact to Policy & Payment

(Investment-Linked Policy and Universal Life Policy)

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What are Payor riders?

Payor riders are optional plans attached to your main policy. The future premium of your policy (in whole or in part) will be paid by Prudential when any of the claimable event(s) defined in your policy document occurs.

Payor coverage (if applicable) will increase correspondingly and additional insurance charges will be deducted from your account value. Payor premiums for Universal Life policy will also be increased and the incremental premiums will be credited from premium year one onwards.

For Investment-Linked Policy: For policies under Payor status, there will be no change to the policy premium. Only the insurance charges are revised. However, with the increased insurance charges, your annualised premium covered (in whole or in part) by Prudential may not be sufficient to support the additional insurance charges in the later years. Therefore, you are encouraged to do a regular (PRUSaver) top-up based on the amount recommended in the Revision Notification Letter to support the additional insurance charges. We advise you to refer to your Prudential Wealth Planner or Bank Representative for more information.

Impact to Policy & Payment

(Investment-Linked Policy and Universal Life Policy)

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What are Payor riders?

Is my Payor rider affected by this revision?

If my policy is under Payor status, will there be any change to my premium?

Impact to Policy & Payment

(Non Investment-Linked Policy)

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What are waiver riders?

Waiver riders are optional riders under which the future premium of your policy (in whole or in part) will be waived by Prudential when any of the claimable event(s) defined in your policy document occurs.

Medical rider premiums are not guaranteed and therefore not covered by waiver rider. There is no impact to waiver rider due to this revision.

If there is a waiver claim on your policy, Prudential will waive part of the annualised premium. The medical rider premium will be revised as the medical rider premium is not guaranteed and not covered by waiver rider. You are still required to continue paying the premium amount that is not waived by us to ensure continuous insurance coverage.

Impact to Policy & Payment

(Non Investment-Linked Policy)

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What are waiver riders?

Is my waiver rider affected by this revision?

Will there be any change to premium for policies under Waiver status?

Did not find the answers you were looking for?

Contact us at 03-2771 2450 (Monday-Friday, 8.30am – 5.15pm, excluding Public Holidays) or email us at shareyourfeedback@prudential.com.my