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I am having a dilemma on what action I should take with regards to my insurance plans. I am working for a company which provides employee group insurance (group plan) as my employee's benefit. However, before I join the company, I already have my own personal medical insurance plan (personal plan) for almost 10 years, which covers almost the same benefits as the group plan. I only filed claim on my personal plan once for admission to hospital due to high fever.

There is no cash value in my personal plan as it is a traditional plan, i.e. the amount I pay periodically is always 100% insurance premium. The premium also increase every 5 years as I age.

I'm planning to exit my personal plan and only depend on my company's group plan to save some bucks as they are almost identical to each other. But I am worried that it could bring dire consequences especially when I left the company in regards to my health protection.

I am ok with subscribing back to a new personal plan when I leave the company even if the premium is reasonably higher due to my older age then, but my concern is I may be not allowed to do so? Does anyone have such experience and can share? Any expert opinion is much appreciated.

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    Here in the U.S, having your insurance plan through your employer usually means that you get to deduct the monthly premium off your income taxes. Does this also apply to Malaysia? If so, your insurance plan through your employer just became a lot cheaper depending on your income tax bracket, even if it doesn't readily show at face value. – AxiomaticNexus Jan 14 '17 at 6:08
  • Curious what the Malaysian medical tax deduction is or if it even works that way? ie. can you claim your private plan's premiums as an expense? Is there a minimum threshold to claim and you can only claim the amount over that threshold like it is in the USA? – maplemale Jan 17 '17 at 17:17
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I'm planning to exit my personal plan and only depend on my company's group plan to save some bucks as they are almost identical to each other. But I am worried that it could bring dire consequences especially when I left the company in regards to my health protection.

As you already have a personal plan, it is advisable to keep it. Generally the Company's group plans are better and there are no wait periods for certian illness, you need to consider below;

  • Job Loss: If you are working in industry where job looses are sudden, then advisable to keep personal insurance. You don't want to be hit doubly.
  • Job Change: If you are hopping jobs, generally there are 2-3 days gap between leaving the last company and joining next. Plus next company insurance policy may have wait period for some illnesses.
  • Age: As already pointed by you, chances of getting a new individual policy decreases or the premium is high for new joiners.

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