You probably hear people talk about health insurance all the time. However, at times it can get a little confusing on the objective behind purchasing health insurance. That’s okay, because honestly, it’s a pretty confusing topic, even for us too!
Be as it may, at some point in life, we’re all able to get some protection and for the majority of us, it is only possible to receive such protection with the help of insurance.
Buying insurance is a personal choice, especially when it comes to deciding how to manage the risks you might face in the event of any incidents. Purchasing health insurance is an integral part of financial planning. However, if you’re interested in purchasing health insurance for yourself or a family member, how do you go about it and what should your next step be?
For starters, before purchasing insurance, it is of utmost importance to ensure that you have a good understanding of the risks you might encounter such as falling ill, the value of insurance and how it will help you in times of need.
Like most things, though, it takes time to learn and understand the basics of health insurance. If you’re clueless or are having doubts on this, worry not as you will be able to find the right answers to some pondering questions right here and of course with the help of Million Dollar Wealth Planner and Top of The Table MDRT Member, Lam Pui Ka who shared her wisdom on health insurance.
So, let’s look at a few questions together:
1Twenty80: IS IT NECESSARY TO HAVE HEALTH INSURANCE?
Lam Pui Ka: To begin with, everyone needs to understand the benefits or the main purpose of getting health insurance. Basically, health insurance or as some would refer to as a medical card protects you in the event of accidents, injuries or serious illnesses by paying your medical bills and treatment costs without the need for you to touch your savings. This is an effective way to do so that you don’t suffer financially.
Health insurance can help you get the care you need. This is extremely helpful and important for everyone, especially now that medical bills and health care are expensive.
So if you were given a choice, would you prefer to use your hard earned savings or a third party in this case the insurance company to help settle your bills?
I think we can all agree that for sure we would prefer to have the insurance company to settle your bills. Hence, it is why health insurance is very important.
1Twenty80: WHAT ARE THE RISKS OF NOT HAVING HEALTH INSURANCE?
Pui Ka: So a lot of people think that health insurance doesn’t need to be bought now because I’m healthy. However, in case of an emergency, your medical bill costs about Ringgit Malaysia (RM) 10, 000. How many of us have that kind of liquid cash to pay the bills?
Secondly, why do people tend to delay getting insurance? We have to understand one thing as well, when it comes to health insurance underwriting is always crucial. Meaning not everyone is insurable as it depends solely on your health condition.
One common mistake many make is they often think that as long as they have money, it isn’t an issue to buy an insurance plan. However, this is a misconception because it depends on whether or not you’re insurable.
So, the question you need to ask yourself is are you insurable or not?
Like most things, though, it takes time to learn and understand the basics of health insurance. If you’re clueless or are having doubts on this, worry not as you will be able to find the right answers to some pondering questions right here and of course with the help of Million Dollar Wealth Planner and Top of The Table MDRT Member, Lam Pui Ka who shared her wisdom on health insurance.
Doctors and Insurance Advisors work hand-in-hand. Doctors cure you medically and we cure you financially.
1Twenty80: IS THERE A DIFFERENCE BETWEEN LIFE AND HEALTH INSURANCE?
Pui Ka: Each type of insurance serves a completely different purpose and offers different coverage. For instance:
- HEALTH INSURANCE – Covers your medical expenses and doctor’s visits.
- LIFE INSURANCE – Pays out a lump-sum death benefit (cash) upon premature death.
Here are some of the benefits and differences:
| Life Insurance | Health Insurance |
|---|---|
| Cover your life in case of your untimely death. | Provides financial aid when you are hospitalised. |
| Provides beneficiaries with cash upon your death. | Covers long hospitalisation and high medical bills and offers you the choice of a private room in hospital. |
| Replaces your income when you are no longer around to feed your family. | Lessens financial impact from medical costs. |
| Your family will able to continue with their lifestyle with the sum | Covers the expenses for treatments of the insurer in case of illness, accidents and other unfortunate events that may not be prevented. |
1Twenty80: CAN SENIOR CITIZENS BUY HEALTH INSURANCE?
Pui Ka: Yes it is possible, provided they are healthy and are not above the age of 70 years old. It is common for older adults to have chronic medical conditions and this may cause them to be not insurable.
1Twenty80: ARE THERE ANY EXTRA PERKS AND BENEFITS THAT COME ALONG WITH A HEALTH INSURANCE PLAN?
Pui Ka: There are different kinds of health insurance plans, but most insurance plans from different companies have the same perks and benefits. In order to know which plan suits you the best, discussing with an insurance advisor would be a great way to begin.
1Twenty80: COULD YOU SHARE SOME IMPORTANT QUESTIONS TO ASK AN INSURANCE COMPANY BEFORE SIGNING AN AGREEMENT?
Pui Ka: More often than not, clients often tend to neglect asking questions.
When it comes to explaining, a lot of insurance advisors tend to say that medical insurance covers everything! Hence, why most clients refrain themselves from asking further questions with the thought that everything is claimable.
However, that isn’t true. As a matter of fact, all medical insurances have a general exclusion.
One question that is very important to ask as a client is, “What are the things that are not claimable in the insurance policy?”
There is always an issue on what is claimable and non-claimable. So, asking this question would set the record straight and you will be aware of the exclusion that the policy has.
Vaccines protect your physical health, insurance protects your financial health.
Sidebar: TIPS ON WHAT SHOULD YOU DO BEFORE PURCHASING HEALTH INSURANCE:
- Find out the sum insured.
- How long is the waiting period before you start using it for hospitalisation coverages?
- What are the wellness benefits you can get from the insurance coverage?
- How long is the duration for you to get your claims back in events you need to take out money from your pocket.
- Lastly, survey different insurance companies and make a comparison before settling for a certain company.
