Case study
[RM 12k – RM 7k] Helping a Retiree Manage Rising Insurance Premiums
By Jason Wong, Senior Partner
👤 Client profile
• Age: 65 years old, male
• Status: Retiree, living on EPF savings
• Current Premium: RM 12,000/year (scheduled to increase to RM 14,000 in 3 years)
• Concern: Paying high premiums for medical insurance until age 100
• Status: Retiree, living on EPF savings
• Current Premium: RM 12,000/year (scheduled to increase to RM 14,000 in 3 years)
• Concern: Paying high premiums for medical insurance until age 100
📉 The Challenge
Our client had a standalone medical insurance policy with the following benefits:
• RM 1 million annual limit
• Lifetime unlimited coverage
• No deductible
While the coverage was strong, the premiums were becoming financially unsustainable. As a retiree, the client was concerned that paying RM 12,000 annually (rising to RM 14,000) would deplete his EPF savings in the long term.
• RM 1 million annual limit
• Lifetime unlimited coverage
• No deductible
While the coverage was strong, the premiums were becoming financially unsustainable. As a retiree, the client was concerned that paying RM 12,000 annually (rising to RM 14,000) would deplete his EPF savings in the long term.
💡 The Solution
We proposed switching to a high deductible medical insurance plan.
The new plan offered:
• RM 2 million annual limit (double the coverage)
• Lifetime unlimited coverage
• Deductible of RM 5,000 per hospital admission
• Premium reduced to RM 7,000/year (a 42% reduction)
• Sustainability up to age 100
The new plan offered:
• RM 2 million annual limit (double the coverage)
• Lifetime unlimited coverage
• Deductible of RM 5,000 per hospital admission
• Premium reduced to RM 7,000/year (a 42% reduction)
• Sustainability up to age 100
🎯 Key Benefits of the Change
• Pay Only When Hospitalised
The client is still healthy and does not make claims every year. With the new plan, he only pays RM 5,000 out of pocket if hospitalised, instead of paying RM 14,000 every single year.
• Lower Annual Commitment
Reducing the annual premium from RM 12,000 (soon RM 14,000) to RM 7,000 makes the plan much more affordable for a retiree. This helps preserve his EPF savings for living expenses and lifestyle needs.
• Higher Protection at Lower Cost
Despite the deductible, the client now enjoys RM 2 million annual coverage, offering better protection in case of major hospitalisation. RM 5,000 deductible is relatively small compared to the potential savings of RM 7,000 a year in premiums.
The client is still healthy and does not make claims every year. With the new plan, he only pays RM 5,000 out of pocket if hospitalised, instead of paying RM 14,000 every single year.
• Lower Annual Commitment
Reducing the annual premium from RM 12,000 (soon RM 14,000) to RM 7,000 makes the plan much more affordable for a retiree. This helps preserve his EPF savings for living expenses and lifestyle needs.
• Higher Protection at Lower Cost
Despite the deductible, the client now enjoys RM 2 million annual coverage, offering better protection in case of major hospitalisation. RM 5,000 deductible is relatively small compared to the potential savings of RM 7,000 a year in premiums.
✅ Outcome
The client now has:
• Peace of mind knowing his medical coverage is sustainable until age 100.
• Reduced financial burden, saving over RM 5,000 annually in premiums.
• Stronger protection with a higher annual coverage limit.
By adopting a high deductible plan, the client balanced affordability and protection, ensuring his retirement years remain financially secure while still maintaining comprehensive medical coverage.
• Peace of mind knowing his medical coverage is sustainable until age 100.
• Reduced financial burden, saving over RM 5,000 annually in premiums.
• Stronger protection with a higher annual coverage limit.
By adopting a high deductible plan, the client balanced affordability and protection, ensuring his retirement years remain financially secure while still maintaining comprehensive medical coverage.