Even for policies with guaranteed renewals, the insurance company may decide to renew your policy with a higher premium. However, any increase in your premium or a decision to not renew your policy will require an explanation from the insurance company.

• Insurance premiums

Premiums are charged either monthly or annually by your insurer in order to maintain your policy. The amount you pay depends on several factors including your age, previous medical conditions, family medical history, whether or not you are a smoker, and of course, the level of coverage of your policy.

You’ll find the table of premiums of an insurance policy in its Product Disclosure Sheet (PDS).

• Additional costs during treatment/hospitalisation

In addition to the premiums you have to pay, some insurance plans may not fully insure you against all costs. So there may be some other costs involved when you make claims to your insurance provider for your medical expenses.

The specifics on which costs impact you will depend on your specific insurance policy. Here are some common terms that you will need to understand:

i) Deductible: This term refers to the amount that you’ll have to cover before your insurance provider will start to pay for your treatment.

ii) Co-pay : This is the percentage of the medical costs that you will still have to pay for. For example, your policy might have a co-pay of 20% and your medical bill may come to RM1,000. In this case, your insurer would only pay RM800 of your bill and you would have to cover the remaining 20%.

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