KUALA LUMPUR: The Malaysian Financial Planning Council (MFPC) has urged policyholders affected by premium adjustments to avoid cancelling their insurance policies.
MFPC said while public healthcare offers an alternative, policyholders should weigh potential drawbacks, including extended waiting times for consultations and restricted access to preferred treatments or facilities.
"Insurance protection forms the foundation of financial planning, and loss of coverage could leave individuals financially vulnerable during unforeseen circumstances," it said in a statement today.
The council encourages policyholders whose policies have been terminated or lapsed to contact their insurers promptly to reinstate their coverage within the given window period under the interim measures.
"Policyholders are urged to consult their servicing agents, financial planners, or advisers to thoroughly review their current policies.
"Professionals can help identify benefits that may be adjusted to align with personal needs and budgets."
MFPC added that for new or upgrading policyholders, it recommends reviewing proposed plan benefits carefully to ensure they align with personal needs, budgets, and the sustainability of premium payments.
"Upgrading or replacing existing policies carries risks, such as potential denial of claims for pre-existing conditions during waiting periods or under exclusion clauses. Professional advice is invaluable in navigating these decisions," it added.
MFPC said while the interim measures introduced by Bank Negara Malaysia provide immediate relief, the urgent need for long-term collaborative strategies to address the root cause - medical cost inflation.
"The projected 15 per cent increase in 2024 is significantly higher than global and regional averages.
"We urge the Ministry of Finance, the Ministry of Health, Bank Negara and all stakeholders to work together to curb medical cost inflation and design medical and health insurance/takaful products that align with value-based healthcare principles, ensuring affordability and sustainability," it added.