Medical Insurance & You

Cheap & Comprehensive Medical Insurance Till Age 100: Is It Possible?

Most medical plans today provide coverage up to 100 years in age. However, premium and/or insurance charges will increase as we age as the risk of getting sick is higher when we grow older. It is also important to know what you want so that you can tailor your plan according to your needs and financial commitment; the decision should not be based solely on price. A cheaper plan may mean less cover or it may have a clause that will actually terminate the policy should the policyholder make a lot of claims. Be sure to check the policy for the detailed terms and conditions to ensure the suitability of the plan.

While we all aspire to stay healthy and lead a healthy lifestyle, there is really no guarantee that we will not be susceptible to any life threatening diseases. Hence it is always advisable to have adequate coverage to protect us against any unanticipated medical emergencies. While a hospitalisation insurance plan helps to foot medical bills, a critical illness cover would shield our finances from the consequences of major illnesses.

How To Get The Right Medical Insurance For Adequate Protection

Understand what your needs are and how much you can afford to put aside regularly. Speak to your agent for advice and recommendations before choosing a plan that best suits your needs and budget.

There are 4 criteria to look out for in a medical plan:

a) Limit

what is the maximum amount that the medical plan covers you? Some plans have an annual limit which determines the amount claimable within a year. Some plans have lifetime limits which determine the amount claimable within a lifetime. And some plans have both.

Sometimes the limit offered by a medical plan may seem to be enough now but may be insufficient in the future. This is only realized when a huge medical expense arises and you are not able to claim because you have exceeded your annual limit or lifetime limit.

b) Out of pocket expenses

Do you have to pay any amount incurred out of your
own pocket?

Some plans require you to pay nothing on the eligible claims amount. Some plans require you to share the expenses incurred. For example, co-insurance is where you pay a certain percentage of the total claims amount. Or it can be a deductible plan where you only need to pay a certain amount of the bill. Coinsurance plans however are cheaper and savings could be substantial in the long run versus the coinsurance amount paid for major hospitalisations, which are not expected to be frequent. The focus is to cover the big bills that will hurt our finances.

c) Non-cancellable

Does the plan have a non-cancellable clause? This means your plan will be renewed every year for sure and the company cannot cancel your medical plan.

d) Basic benefits and additional benefits

Basic benefits would include Room & Board, in hospital related expenses, and pre and post hospitalization treatment
some plans may offer more benefits but you need to be aware that everything comes with a cost so it’s important to only buy what you need

It is important to disclose to the insurance company details of your or family’s medical history (if any) at the time of purchase, to avoid any possible dispute in the future.

Take time to talk to your agent about the claims procedure, so you are aware of it.

All insurance companies offer a 15-day free look period. If you do not find the policy suitable and return it within 15 days after the policy is delivered to you, you are entitled to get a refund of the premiums paid (subject to terms and conditions).

Review your medical insurance plan at least once a year

This is very important, especially with healthcare increases continuing to outpace general inflation rate. Chances are the plan that you have bought previously may not be enough to meet future needs. Therefore, it is always prudent to review your existing coverage. Upgrade if you can afford it, so you will have the financial resources to meet rising medical costs, particularly during your retirement years.

How Is GST Going To Affect Medical Insurance?

GST on life insurance policies was implemented in accordance with the GST Act 2014 set by the Royal Malaysian Customs Department. Life insurance policies generally are exempted from GST but non-life insurance benefit(s) attached to a life insurance policy (e.g. personal accident, critical illness, medical and health insurance benefits) are subject to GST.

It is advisable to check with your insurance provider on how your policy is affected by GST.