FOOD FOR THOUGHT 'MEDICAL INSURANCE' (By JEAN YOH -KU REJOICE)

By Jean Yoh (KU REJOICE) [via an email: Thursday, December 16, 2010 1:12 PM]

FOOD FOR THOUGHT 'MEDICAL  INSURANCE' 

Dear James,

For yr FPP training as AIA Excelcare PLUS & Medical cover plus is now the best in town and cover up to 100 years.

Lately, we read of stories about a growing number of individuals who landed themselves in debt with credit card companies and banks for the medical expenses incurred. With health-care costs continuing to escalate, it is important that we have a safety net that would be able to help tide us over whenever we are faced with unexpected but increasingly expensive medical bills.  

I advise people to include a comprehensive medical plan in their financial planning portfolio. It is so important for one to have adequate medical insurance coverage. Even if  one is covered by his or her employer now, it is nevertheless advisable for  him or her to take up a private medical insurance because relying on the medical benefits provided by his or her employer alone is not going to be enough in today’s context.
 

Many people do not realize that employer-provided plans are not portable. The cover will terminate when you are no longer with the company. Where do you fall back on should you need to be hospitalized during that period of time? More importantly, what will happen when you retire from work given that most private companies in Malaysia do note provide medical insurance when the employee retires? 

By then it may not be easy for you to get insured because of your age and health condition. Even if you are accepted by the insurance company, chances are you will be paying a higher premium, and certain conditions may be excluded. 

A critical illness plan where the insurance company will make a lump sum cash payment to the policyholder if he or she is diagnosed with one of the critical illness listed in the insurance policy. A critical illness payout is particularly useful for subsequent outpatient follow ups or a second doctor’s opinion.  

 A hospital income plan that provides income replacement when the policyholder is hospitalized due to an accident or illness.

        A disability income plan which covers that person’s day-to-day expenses if he or she is unable to work. 

I always advise our customers to start from an amount that they are comfortable with and gradually top up as they have more money.

Important considerations when buying medical insurance:

1.     Know what your needs are and how much you can afford to put aside regularly. Speak to yr agent or Manager for advice and recommendation before deciding on a plan.

2.     Ask your agent for more information about the medical plan that you wish to buy. It is crucial to understand what the terms and conditions are, as well as the scope of cover that the plan provides. For example;-

·WHAT ARE THE BENEFITS PROVIDED?

·WHAT IS NOT COVERED?

·HOW LONG IS THE COVER FOR?

·WHAT IS THE WAITING PERIOD IMPOSED?

·WHAT IS THE LIMIT YOU CAN CLAIM?(annual and lifetime limit)

·FIND OUT WHETHER THE PREMIUM WILL BE THE SAME THROUGHOUT THE ENTIRE DURATION OF POLICY, OR DOES IT INCREASE ACCORDING TO AGE?

·IS THERE ANY CO-INSURANCE?(Co-Insurance is basically a cost-sharing arrangement between the insurance co and policyholder) 

3.     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 unnecessary dispute in future.

4.     Talk to your agent about the claims procedure, so that you are aware of what is involved. For example, if you have a medical card the insurance company that you are insured with will probably have a list of panel hospitals that you can seek treatment from. If you check into a panel of hospital using your medical card, you may only need to settle for the amount you are required to pay upon being discharged from the hospital. Your insurance company will deal with the hospital directly for the balance of the bill. However it is possible for you to go to a non-panel hospital to seek treatment. In this instance you will have to pay first and reimburse from the insurance company later. You will need to get together all the original receipts and bills together with supporting medical reports in order to make a claim.

5.     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 entitles to get a refund from the premiums paid.

6.     Review your medical insurance plan now and then

• This is very important, especially with health-care increases continuing to outpace general inflation rates.  It is possible that the plan you have bought previously may not be enough to meet

• Future needs.  Therefore, it is always good 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. 

I used these to train my agents and thought the points are useful in case u need them for training

  
JEAN