How Active Pricing Medical Insurance Could Benefit Young Malaysians

Healthcare costs in Malaysia are on the rise, making it increasingly challenging for many to afford adequate medical coverage. Young adults, in particular, often find traditional medical insurance plans expensive.

Fortunately, active pricing in medical insurance, has emerged as a viable solution.

We aim to provide clarity regarding how this innovative approach can offer significant benefits, especially for young, healthy individuals looking to manage their healthcare costs effectively.

What is active pricing?

Active pricing, is an insurance pricing strategy where the policyholder's past health claims history directly affects premiums.

Unlike traditional insurance plans that rely on broader risk pools and community ratings, active pricing tailors premiums to individual health behaviours and claims records.

Overall, this inventive model rewards healthy lifestyles and encourages preventive care—ultimately culminating in more affordable healthcare options for those who maintain good health.

How does active pricing work?

Active pricing operates on a simple principle: the fewer claims one makes, the lower their premiums become. In practice, insurers assess one's health status and claims history to determine their insurance costs.

If one proactively maintains a healthy lifestyle and avoids frequent medical claims, they could benefit from reduced premiums.

Conversely, if you have a higher number of claims, your premiums may increase. This dynamic pricing model incentivises policyholders to take proactive steps towards managing their health.

Read: Exploring active pricing in medical insurance: Favorable premiums for healthy Malaysians

Benefits of active pricing medical insurance for young adults in Malaysia

The benefits of active pricing medical insurance for Malaysian young adults include:

Cost saving

One immediate advantage of active pricing for young adults is the potential for lower initial premiums. Young people tend to be healthier, which can translate to lower insurance costs compared to traditional plans.

Young adults can, therefore, save money on premiums, allowing them to allocate those savings towards other experiences, such as travel, investments, buying a house, or personal development.

Encourages a healthy lifestyle

Active pricing incentivises policyholders to lead a healthier lifestyle by staying active, eating well, and regularly monitoring their health.

This not only results in lower premiums as you stay healthy with no claims made but also promotes long-term health benefits. Think of it as an investment in both your future health and financial well-being.

Lower premiums at the get go

Policyholders can enjoy instant discount on their medical insurance charges. By maintaining good health and making no claims, you continue to enjoy the upfront discount yearly.

Encourages preventive healthcare

Active pricing encourages regular checkups and preventive care. This allows for the early identification and resolution of potential issues before they become serious problems.

This proactive approach to healthcare can save money and reduce the hassle associated with managing chronic conditions or dealing with unexpected medical emergencies.

How to get started with active pricing medical insurance in Malaysia?

Young adults in Malaysia, who are often in the early stages of their careers with limited financial resources, may particularly benefit from active pricing insurance plan.

Active pricing can give young adults the control to pay less without compromising on the coverage and take charge of their health journey.

At Prudential, we offer an active pricing plan with PRUMillion Med Active. To find out more, visit our website at www.prudential.com.my or speak to our Wealth Planner today!

Read more about Prudential’s Active Pricing Policy in Malaysia.

Conclusion

The increase in medical services cost, including hospital stays, treatments, and medications, have put a strain on the financial resources of many young individuals.

Fortunately, active pricing medical insurance offers a compelling option for young adults in Malaysia, presenting a unique opportunity to manage healthcare costs more effectively while encouraging healthier lifestyles.