Frequently Asked Questions
ATTENTION:
The FAQ list below will be updated with further information from time to time.
Revision of Tabarru’ Charges (i.e. repricing) is mainly driven by deteriorating claims experience that is due to rising medical costs, increase in diagnosis of chronic or lifestyle diseases which leads to higher frequency of people seeking healthcare treatments, increase in doctor’s fees or laboratory charges and new/more advanced medical treatments and prescription of drugs.
As claims are paid from the Tabarru’ Fund, the rising trend of claims has reduced the Tabarru’ Fund considerably and it may not be sufficient to cover future claims. Tabarru’ Charges for respective medical plan will need to be revised to ensure its sustainability. Without the repricing exercise, Tabarru’ Fund may deplete and we will not be able to pay for future claims.
The cash value / account value likely will increase with the additional contribution / recommended top-up during initial years, however, the increase in cash value / account value will subsequently reduce in later years as future Tabarru’ deduction will be increasing over the years according to your age.
Example on the following Male, Non Smoker ANB 30, Plan 150 Expiry 80, Current monthly contribution RM 165.25
Proposed monthly top up contribution = RM 70
New monthly contribution = RM 235.25
From the illustration above, we can see the cash value increasing over the years, but at a certain point, it will start to reduce as the Tabarru' amount deducted has becoming much higher over the time. Projection is assuming investment return of 5% every year. The actual returns is subject to company’s performance.