Medical insurance is vital for protecting you against rising hospital and treatment costs, but premiums can sometimes feel costly. The good news is there are smart ways to reduce how much you pay without compromising essential coverage. Here are practical and updated strategies to help you manage your medical insurance premiums in 2026 and beyond.
Here are four ways to get lower medical insurance premiums.
1. Get your insurance early
Age is one of the biggest factors that determine your premium — younger applicants are generally seen as lower risk by insurers, which means lower premiums when you start early. Waiting even a decade could mean paying significantly more for the same level of coverage later on.
‘How much can I save if I get my insurance now?’
To answer that, consider Efa, a 24-year-old lady working as an administrative officer. For her chosen insurance policy, her monthly premium at her current age is RM160. But say that she decides to get insured 10 years from now, her monthly premium for the exact, same policy increases to RM220! That’s RM60 or 37.5% of her money that she could save! Multiply that amount with 12 months, Efa will find herself wasting RM720 a year!
So what’s the lesson here?
Get insured as soon as you can to save more of your precious money!
2. Start with Coverage That Matches Your Needs
Instead of going for the highest coverage possible right away, start with an amount that fits your current budget and health needs. For example, a young and healthy individual typically doesn’t need extremely high limits and can adjust coverage later as income and needs grow.
‘But paying less for insurance means I won’t be getting sufficient coverage, right?”
Not necessarily.
For instance, the 24-year-old Efa may not need up to RM1,000,000 for inpatient treatment annually as she’s young and in the best of health. She can get a much lower premium by slashing the coverage amount of inpatient treatment to say, RM500,000.
‘But what if I want to increase the coverage amount later?’
That’s a good question! As you get older and your income grows bigger, you can increase your insurance coverage amount depending on your needs at that point.
The bottom line is you need to balance your medical needs with the amount you’re capable of paying every month. It’s perfectly okay to start with a small coverage. Perhaps a few years down the road, you can consider increasing your coverage when you need it and when you can afford to.
3. Choose a higher deductible
The good thing about opting for a higher deductible is you can pay for a significantly lower premium.
‘Wait, what’s a ‘deductible?’
A deductible is the amount you agree to pay out of pocket before the insurer pays the rest. Choosing a higher deductible generally results in lower premiums because you’re taking on more upfront cost in the event of a claim. Just make sure you can afford the deductible if you’re ever hospitalised.
To give you a better picture of how a ‘deductible’ works, consider the scenarios below:
Scenario A (Deductible amount: RM500)
Efa is admitted to a hospital for a minor knee surgery. As her insurance policy stipulates and she agreed that her ‘deductible’ is RM500, she has to pay RM500 out of RM5,000 of her medical bill while her insurance pays the remaining RM4,500.
When Efa’s deductible amount is RM500, her monthly insurance premium is RM250.
Scenario B (Deductible amount: RM1,000)
Efa is admitted to a hospital for a minor knee surgery. As she asked for her deductible to be RM1,000 and this was agreed by her insurance, she has to pay RM1,000 out of the RM5,000 medical bill while her insurance pays the remaining RM4,000.
Meanwhile, when Efa’s deductible amount is RM1,000, her monthly insurance premium goes down to RM150. That’s RM100 saved! In a year, she would save RM1,200!
Remember, only choose a higher deductible if you certainly can afford to pay for your deductible whenever an unexpected medical emergency arises.
4. Compare insurance policies
Different insurers price similar coverage very differently. By comparing multiple plans and insurers, you can spot better deals — for example, similar limits with lower premiums, lower waiting periods, or more flexible features. Comparison also helps you avoid plans with unnecessary add‑ons.
5. Consider Co‑Payment Options
New regulations in Malaysia now require insurers to offer medical plans with co‑payment features as an option. Co‑payment means you share a portion of the claim cost with the insurer — which can reduce your premium by 19% to 68% depending on the co‑payment level selected.
This option can be appealing for budget‑conscious buyers, especially if you’re relatively healthy or don’t expect frequent hospital claims. Co‑payments usually won’t apply for emergency treatments or critical follow‑ups.
6. Opt for Reimbursement Plans (When Available)
Some insurers offer reimbursement‑only plans where you pay first and then claim later, as opposed to cashless at panel hospitals. These plans sometimes come with lower premiums, though they require you to settle bills upfront and claim back later.
7. Maintain a Healthy Lifestyle
Insurers increasingly reward healthy behaviours. Some modern medical plans offer premium discounts or rewards — for example, up to around 15% off premium — when policyholders maintain healthy lifestyles and claim less frequently.
Actions like regular exercise, balanced diet, quitting smoking, and staying at a healthy weight don’t just improve your wellbeing — they can contribute to lower insurance costs too.
8. Take Advantage of No‑Claim Benefits
Many insurers offer no‑claim discounts or benefits when you don’t make claims during a policy year. This might come in the form of premium reductions at renewal or enhanced coverage without higher costs.
9. Use Group Insurance Strategically
If your employer offers a group medical plan, that’s a cost‑effective first layer of protection. While not a replacement for personal coverage, you can use this group plan to complement your personal medical card, helping you reduce the amount you need from your own policy.
10. Avoid Unnecessary Add‑Ons
Riders and extra benefits — like maternity or extensive outpatient insurance — add value but also increase premiums. Choose add‑ons only if they align with your needs and budget; unnecessary extras can drive your costs up without proportional benefit.
Conclusion
Lowering your medical insurance premiums doesn’t mean sacrificing protection. With thoughtful choices — such as starting early, comparing plans, choosing suitable deductibles, considering co‑payment options, and maintaining good health — you can find a balance between affordability and meaningful coverage.
If you need personalised help finding the right plan that balances your budget and protection needs, BJAK’s advisors are here to help you compare and customise your medical insurance effectively.
