Medical Revision

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. As you might be aware, the cost of healthcare has been consistently rising due to various factors. These include increase in hospital and doctor charges, advancement in medical treatments and drugs, as well as increasing demand for better healthcare services. Having carefully considered the relevant factors above, Prudential undertakes this revision to help ensure your long-term medical protection will be there for you when you need it. You will be notified accordingly if there is a need for revision in the future as well.

How much do medical costs rise each year?

Medical inflation in Malaysia is currently increasing on an average of 10% - 15% every year. This is in comparison to the general inflation rate of 2 – 3% in the same period.

What is the difference between premium and insurance charges?

Premium is the amount that you pay to Prudential in return for the insurance coverage provided. For an investment-linked insurance policy, part or all the premiums paid are used to purchase units in the investment-linked fund(s) while the remaining is used to pay upfront charges for insurance expenses and direct distribution costs. Insurance charges are deducted monthly from the value of your investment-linked funds to pay for your insurance coverage. Generally, the insurance charges will increase as you grow older.

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

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 may lapse earlier than expected.

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

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.

Are the insurance charges and premium rates for my medical plan guaranteed?

The insurance charges and 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).

Is the rate of increase in premium/insurance charges fixed across all policies?

The rate of increase in premium and insurance charges is not fixed across all policies as it varies depending on factors such as age, gender and type of medical plan.

Is there any change in benefits with this revision in insurance charges and/or premium?

Payor coverage will be increased to cater for the new premium. All other benefits remain the same.

Will there be an increase in my investment‑linked policy account value since I am paying more premium?

The impact on the investment‑linked policy’s overall account value should be minimal because the additional premium is utilised to cover the increased insurance charges.

I own several policies, why did I receive my letters on different dates?

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

Is this revision in medical premiums and insurance charges approved by Bank Negara Malaysia (BNM)?

This is a commercial decision by Prudential.

Arising from this revision, what are the options available to me?

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

Medical Revision

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

How much do medical costs rise each year?

Medical inflation in Malaysia is currently increasing on an average of 10% - 15% every year. This is in comparison to the general inflation rate of 2 – 3% in the same period.

What is the difference between premium and insurance charges?

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 being revised?

Are the insurance charges and premium rates for my medical plan guaranteed?

The insurance charges and 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).

Is the rate of increase in premium/insurance charges fixed across all policies?

The rate of increase in premium and insurance charges is not fixed across all policies as it varies depending on factors such as age, gender and type of medical plan.

Is there any change in benefits with this revision in insurance charges and/or premium?

Payor coverage will be increased to cater for the new premium. All other benefits remain the same.

Will there be an increase in my investment‑linked policy account value since I am paying more premium?

The impact on the investment‑linked policy’s overall account value should be minimal because the additional premium is utilised to cover the increased insurance charges.

I own several policies, why did I receive my letters on different dates?

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

Is this revision in medical premiums and insurance charges approved by Bank Negara Malaysia (BNM)?

This is a commercial decision by Prudential.

Arising from this revision, what are the options available to me?

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

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