As Malaysia’s financial landscape shifts in 2025, financial advisors must be aware of emerging trends in health, education and travel insurance. With growing public awareness of advanced medical treatments, mental health coverage and evolving financial security needs, clients will expect more comprehensive and future-ready insurance solutions. 

Two MDRT members, Esther Hu and Peline Toon from Malaysia, share their insights on how advisors can navigate these changes and better support their clients in making informed insurance decisions. 

 

Understanding the coverage of advanced treatments 

Breakthroughs in medical technology are reshaping healthcare globally, with Malaysia emerging as a key player in the adoption of advanced treatments. Innovations such as robotic-assisted surgery, brachytherapy for cancer, and stem cell transplants are becoming more accessible, offering patients minimally invasive procedures, improved recovery times, and better health outcomes. 

However, according to Esther Hu, a 14-year MDRT member, many policyholders remain unaware of the coverage gaps in their health insurance plans. Most focus solely on annual limits, lifetime limits, and room and board rates, often overlooking whether their policies cover these cutting-edge medical procedures. This can lead to unexpected financial burdens, with clients assuming they are protected — only to find out their plan excludes essential treatments.  

She advises, “Many clients don’t realise that not all policies cover the latest treatments. Advisors should help clients carefully examine their coverage and ensure they aren’t paying for plans that exclude key medical advancements.” This means advisors must take a proactive role in educating clients about policy exclusions and guiding them to choose plans that align with their healthcare needs. During policy renewals, financial advisors should help clients navigate the fine print, ensuring they receive the best possible coverage without unexpected gaps in protection. 

 

High annual medical limits for worst-case scenarios 

Since 2024, Malaysia has seen a shift towards medical insurance plans offering significantly higher annual limits, up to RM10 million, compared to the previous RM1 to 2 million cap. This change reflects the rising costs of critical care, particularly for long-term hospitalization, end-of-life care, and life support expenses. 

To take advantage of this point, advisors may position high-limit medical insurance as an essential financial safeguard, helping clients understand how these policies prevent severe financial strain in medical emergencies. Hu highlights, “Medical costs can escalate quickly, especially for severe illnesses. I always remind my clients that having a high-limit policy can be the difference between financial security and financial distress.” Using real-life case studies, she illustrates how inadequate coverage leaves families vulnerable, reinforcing the need for higher protection limits. 

 

Mental and psychological health coverage 

In another trend, mental health awareness is increasing, with Malaysia’s adolescent depression rates currently at 18%. The demand for policies covering psychological conditions — such as depression and anxiety — has grown, particularly among corporate clients who prioritize employee well-being. Peline Toon, a seven-year MDRT member, shares, “Mental health is just as important as physical health. More companies are realizing this, and as advisors, we can encourage businesses to include mental health coverage in their employee benefits.” 

As more businesses integrate mental health benefits into employee insurance plans, companies in high-stress industries will recognize their value—especially as these efforts align with Malaysia’s National Strategic Plan for Mental Health 2020-2025, which aims to reduce adolescent depression rates to 10% by 2025. 

 

Supporting an aging population with longer life expectancy 

Malaysia’s aging population is set to exceed 15% of the total population by 2050. With life expectancy increasing, financial security in old age is becoming a priority. Clients are looking for insurance solutions that include retirement savings options, assisted living coverage, and long-term financial planning.  

Toon advises, “It’s crucial for clients to have a plan beyond Employee Provident Fund savings. I always recommend looking at annuities or investment-linked policies to create a stable income for their retirement. Advisors should guide clients toward these policies to ensure sustainable income streams while also helping families prepare for eldercare expenses. This not only eases the financial burden on younger generations but also ensures aging parents receive the support they need.” 

 

The shift toward private and overseas education 

Locally, more families are opting for private and overseas education for their children. However, rising tuition fees and fluctuating exchange rates make financial planning increasingly complex. Toon notes, “Parents often underestimate how quickly education costs can rise. The earlier they start planning, the easier it will be to manage these expenses without financial strain.” 

Helping clients develop structured education savings plans ensures they can budget effectively for future tuition costs. By showcasing case studies of successful early planning strategies, Toon reinforces the importance of starting these savings plans sooner rather than later. 

 

Preparing clients for the future 

As insurance needs evolve, MDRT advisors play a crucial role in ensuring clients receive comprehensive, forward-thinking coverage. By staying informed about emerging trends and proactively educating clients, financial advisors can provide valuable guidance in navigating Malaysia’s changing insurance landscape. With a focus on tailored solutions, structured financial planning, and proactive client engagement, MDRT members can help their clients secure financial stability and peace of mind for the years ahead. 

 

Contact: MDRTeditorial@teamlewis.com