Overall annual v.s. overall lifetime medical card limit: the differences

When navigating health protections options, it's crucial to understand the various limits that can impact your coverage. Two key concepts in this realm are the overall annual limit and the overall lifetime limit. While both are designed to cap the participant's claim payout, they operate in distinct ways that can significantly affect your financial planning and healthcare access. In this article, we’ll break down the differences between these two limits, helping you make informed decisions about your health protection plans and prepare for future medical expenses.

1. Different meaning 

The definitions for both overall annual and overall lifetime medical limits are different. Overall annual limit is the maximum amount that your takaful operator will cover for your medical expenses in one year. If it reaches the  limit (according to the plan that you have chosen) within the year, you will need to cover for any extra costs as the limit has been capped. However, the good news is that at every certificate anniversary, , the same limit will be refresh.

On the other hand, t overall lifetime limit is the maximum amount that your takaful operator will cover for your medical expenses over the entire duration of your takaful medical plan. This limit is different from the overall annual limit as once the limit is reached, the takaful operator will no longer cover any additional medical expenses..

2. Time frame

As both names suggest, overall annual limit applies for one-year. where the time frame usually starts on the date your plan begins and ends 12 months later. Once the period ends, the limit will refresh, and you will have a full limit on your medical coverage again for the next year. This cycle will continue for subsequent year until the coverage expired. For example, if your plan has a limit of RM100,000, your takaful operator will cover your medical expenses within the 12-month frame. However, if the limit is reached, you may need to cover the remaining amount with your own personal expenses.

For overall lifetime medical limit, the coverage applies throughout your medical plan coverage plan.. Unlike the overall annual limit, this limit does not refresh each year. Once your overall lifetime limit is reached, you will have to pay for all future medical expenses out-of-pocket and takaful operator is no longer covering your medical expenses. 

In summary, understanding the distinctions between overall annual and overall lifetime medical limits is essential for effective medical coverage planning knowing how each limit impacts your coverage can help you choose the right plan to meet your long-term healthcare needs and avoid unexpected financial burdens. Make sure to carefully review these limits when selecting a takaful plan to ensure it aligns with your health and financial goals.