Can I claim from all if I have more than one life insurance policy?

If you have more than one life insurance policy. Scenario below will explain the details. Example if you have 3 life insurance policies

Policy A

• Sum Assured RM50,000
• Critical Illness RM50,000
• Medical Cover RM500,000 lifetime limit
• Total Permanent Disable RM20,000

Policy B

• Sum Assured RM30,000
• Critical Illness RM30,000
• Medical Cover RM500,000 lifetime limit

Policy C

• Sum Assured RM30,000
• Critical Illness RM30,000
• Total Permanent Disable RM30,000

Medical Cover

You need surgery which is the total cost RM15,000. You have Policy A and Policy B to pay for you medical bills. The cost will be shared by this two policy which is RM7500 each or any ratio you like.This sharing called Contribution is insurance.

Many of us think that where we can claim RM15,000 from both and you get total RM30,000.  The RM15,000 extra is your profit.  This is not true.

Sum Assured

Natural death , your family will be compensate from Policy A, B and C. RM50k + RM30k + RM30k = RM110k

Sum Assured is the guaranteed amount you will receive when you sign the insurance policy.

Critical Illness

Medical expenses will be shared by Policy A and Policy B , for example total cost RM20k which RM10k each or any ratio you like.

But when you are confirm diagnosed with Critical Illness and illegible to receive Critical Illness compensation.  Policy A,B and C will compensate you with amount of RM50k + RM30k + RM30k = RM110k

Total Permanent Disable

Same as Sum Assured and Critical Illness, Policy A and C will compensate you as Policy B excluded because doesn’t have TPD plan.

Total compensation RM30k + RM20k = RM50k