SHAH ALAM, June 6 — Malaysians ought to take up health insurance at a young age, as premium rates are generally lower while individuals are still healthy, said Bank Muamalat Malaysia Berhad's chief economist Mohd Afzanizam Abdul Rashid.
Doing so is important for long-term financial security, particularly in light of rising medical treatment costs, which are becoming increasingly burdensome.
Healthcare costs are rising faster than overall inflation, potentially placing significant financial pressure on individuals without adequate protection.
“Young people are actually in the best position to obtain health coverage because insurance premiums are more affordable when they are young and healthy.
“Typically, they have not yet developed non-communicable diseases such as hypertension, high cholesterol, or heart disease, so their health risks are considered lower,” he said.
However, Afzanizam noted that good health at a young age does not guarantee future well-being, given lifestyle changes that many young adults face, including work-related stress and a lack of regular exercise.
He said that health insurance not only helps cover medical expenses but also plays an important role in long-term financial planning.
In certain instances, some individuals are forced to sell assets, take out loans, or use other savings, including funds intended for their children's education, to pay for medical treatment.
Such circumstances can lead to emotional strain, particularly when the affected person loses their source of income and can no longer work.
“When people lose income because they are unable to work, the financial risks become much greater. Some are forced to incur debt or draw upon their retirement savings to meet medical expenses,” Afzanizam said.
Nevertheless, he advised the public to carefully evaluate several key factors before selecting an insurance plan, including annual and overall coverage limits, the types of illnesses and treatments covered, and the panel of hospitals available under the policy.
“In addition, individuals should consider their ability to continue paying premiums over the long term, so that the coverage they choose is genuinely suited to their financial circumstances,” Afzanizam said.
