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1. It's that time of the year where insurance companies mail out premium certificates for tax submission purposes.
2. It's also the time when some of us also realise the amount of premiums paid and also wonder whether we have taken the correct policies?
3. In view of this, here's a quick FAQ on the subject of insurance :-
2. It's also the time when some of us also realise the amount of premiums paid and also wonder whether we have taken the correct policies?
3. In view of this, here's a quick FAQ on the subject of insurance :-
a. What must I look for when buying a Medical Card?
A good Medical Card should be acceptable by major hospitals close to where you live. It should also be Renewable at the Insured's option and not at the Insurer's.
Other matters to be considered is whether it provides uniform coverage for all illnesses or does it discriminate and provide lesser coverage for more serious one's like Cancer and Kidney Failure.
One final matter to look is whether it covers all hospitalisation expenditure or does the Insured need to share a portion of the total bill.
A good Medical Card should be acceptable by major hospitals close to where you live. It should also be Renewable at the Insured's option and not at the Insurer's.
Other matters to be considered is whether it provides uniform coverage for all illnesses or does it discriminate and provide lesser coverage for more serious one's like Cancer and Kidney Failure.
One final matter to look is whether it covers all hospitalisation expenditure or does the Insured need to share a portion of the total bill.
b. How do I choose a Critical Illness plan?
In Malaysia, this type of plan covers 36 Dreaded Diseases that in the event it occurs, can force the patient to lose his/her job. Hence why it covers serious ailments such as Stroke, Heart Attack, Cancer, etc.
When choosing a plan, the effect to inflation is the main matter to consider. Does the insured want to take a Participating plan that will grow as the years go by or take a Non-Participating Plan that remains stagnant?
Another factor to consider is whether one is looking at pure coverage only or does one want a plan that has an element of savings/investment as part of the premium?
c. Then how about Personal Accident plans?
PA plans, as the name suggests, generally cover only Accidental misfortunes that usually has external injuries such as cuts, knocks, bruises, etc.
Many take this plan as they are deemed to be cheap. However, the proper way to choose is not to look at the Death benefit, rather, one should look at the Living Benefit.
Statistically, the probability of an accident occurring for most people who are not in hazardous jobs, are very low. Even if it does occur, odds are, one is still alive.
The usual outcome of this misfortune is the MC given by the doctor. Plans that have Living Benefits will pay a weekly allowance for each completed week of the MC duration.
4. While there are many policies and providers out there in the market, the 3 plans mentioned are the first few plans one should take before moving on to others.
5. Most policies are similar and so are the providers. What makes the difference is your advisor. Get someone that you can trust to do a good job for you and your family.
6. One of the best ways to achieve this is to ask close friends to refer their trusted advisors. The odds of making a mistake is thus, drastically reduced.
7. Here's to a wonderful day ahead.
