With the launch of the all new AIA Public Takaful Medical Card, A-Life Med Regular-i (ALMR-i) and withdrawal of the previous medical card product, A-Medik, I’ve been asking question whether this new product is cost- effective to my clients. I've always advise my clients based on their needs and the most cost effective structure of their policy albeit with more paperwork on my side. With these in mind, question of cost-effectiveness arise given the rise in the new product premium structure.
Previously with the A-Medik product, Family Medical Card which covers husband, wife and up to 4 children was always recommended given its cost effectiveness when a couple has 2 kids or more or planning to have more than a kid. With premium from RM230 per month for the whole family for a standalone family medical card, it’s a no brainer for most.
So for those who are A-Medik family medical card policy holder, congratulations and here’s a piece of advice:
Don’t let your policy lapse. It’s the cheapest policy you’ll have for a long.... long time.
With ALMR-i, there are few enhanced features of this product in comparison to A-Medik. With the enhancements, increase in premiums is expected and rightly so. Let’s look at how much the premium has increased for the most basic plan:
- For male person covered, the increase in premium is between 0% and 32% depending on age.
- For female person covered, the increase in premium is between 0% and 17% depending on age.
- For person covered and family, the increase in premium is between 2% and a whopping 44% depending on age.
Cost-effectiveness of ALMR-i family medical card package would depend on you and your spouse’s age, and the number and age of your children. I’ve developed a simple programme to determine whether ALMR-i family medical card is cost-effective for your family’s profile. The programme look something like below.
From the programme, I can recommend the structure of your policy for standalone medical card which is the most cost-effective. I treat this as a trade secret since I’ve not found any agent using this. So, in order to get the best piece of advice, here is the deal I have for potential clients:
- You must have done your research on family medical card package and have decided to sign up (I will still explain all the benefits and need to know information about medical card).
- Fill in the details as required in the form.
- I’ll do an analysis of the cost-effectiveness of family medical card based on your family profile.
- I’ll present my recommendations based on the analysis done (only during appointments).
- Once agreed, you’ll sign up the application form.
- I’ll present the amount of money that you would save by adopting my recommendations and why I made the recommendations.
Only fill up the form if you agree with the terms.