Approximately 100,000 Malaysians are diagnosed with cancer every year. And it is estimated that 1 in every 4 will suffer from the disease by the age of 75 years. These numbers are staggering enough even without looking at the medical inflation rate in the country of 10% every year. Thus we at iBanding are always reminding our readers to seriously consider purchasing a medical and health insurance. If you are considering getting one, here are some dos and don’ts about medical and health insurance that you need to know.

 

The Dos and Don’ts of Medical and Health Insurance

Do: Know exactly what you need

How would you know what you need? Start with your family history and your own pre-existing health conditions. Then look at your lifestyle and habits (hint: do you smoke or drink). Most of us are aware of the risks that we carry, but more often than not we don’t want to think about these things due to their morbid nature. It takes courage to face these issues. But since you have decided that you want to purchase a medical insurance, you might as well be thorough.

 

Do: Company, product & agent comparison

Now that you have identified your needs, start researching products that suit you. Malaysians have this habit of only speaking to one agent (yes the one recommended by their best friend or sister/ brother). Speak to two, three, four agents, or until you find one that you are comfortable with; who offers a policy that best caters to your needs. 

Meet and talk to agents to learn about different insurances.

Do: Know what’s being covered and what’s not

You don’t want to be choosing a medical policy only to find out that it does not cover what you really need. There are restrictions, exclusions and inclusions that you need to understand. In other words, know exactly what the policy covers, and what it does not. Many people end up getting frustrated at the hospital when they realized that their policy does not cover certain costs. And many accuse their agents of being untruthful when selling the policy to them. Ouch.

 

Do: Understand that insurance is “intangible”

Some people still don’t acknowledge the importance of medical and health insurance. They see it as an unnecessary expense. And when things get tough, this expense is usually the first one to get cut. While it is important to buy a plan you can afford, it is most crucial to first understand clearly that insurance is not something you purchase to “enjoy” immediately. But it is a security blanket, like the umbrella we keep in the storeroom in case it rains. We all carry a spare tyre in the trunk of our car, but how often do we ever need it? That does not stop us from taking it with us everywhere we go. Same principle applies. You purchase insurance not for now when you are well and healthy. You purchase insurance to enjoy the benefits when you are ill or hurt.

You carry an umbrella for protection when it rains. While you buy insurance to protect you when you are ill.

Don’t: Rush. Take your time

When you finally found the one plan that best suit you, take time to fully understand the policy before buying it. Sit down with your agent and ask him everything you need to know about the policy. You need to completely understand what medical expenses are covered and what are not covered. Those that are not covered are called Exclusions. Also clearly understand the claim procedures so that you can avoid the unnecessary panic attack during an emergency. Not only you end up with better knowledge about the plan you are about to buy, you can also find out how good and patient your agent is.

 

Don’t: Delay!

Age does not determine one’s health condition. There are a few reasons why you shouldn’t wait for a later age to purchase a medical plan. Medical insurance is much cheaper when you are young compared to when you are older. When you are older, there is a higher chance that you may have diagnosed with some health problems that you need to tell your insurance company. Those health problems will not only increase the cost of your insurance but also may be excluded from your cover. When you are young your medical record is fresh, you can enjoy the lowest price now and even later. Because once you start your medical insurance with one company, they can no longer add exclusions to your policy later.

 

Don’t: Conceal medical history and pre-existing condition

It’s really nothing funny about this. You may think you can get away with hiding important information just so you can get a lower premium. But insurance companies are smarter than you think. If you are found out, not only your claim will be rejected, you may be sued by your insurer for all the pay-outs they have made on your previous claims. Trust us, this is not a risk worth taking.

Please don’t hide any important information about your medical condition.

Don’t: Buy if you’re unsure

Policy too vague? Don’t buy it. Agent giving you a bad vibe? Don’t buy it from him. Don’t have a good feeling about the whole thing? That’s right. Don’t buy it. There are thousands of agents out there, if you are not 100% happy with the one you met, find another. iBanding’s agent directory has a score of fantastic agents you can reach out to. If you are unsure of a plan, be patient and learn more about other plans. There are many insurance companies offering a variety of products. If you are unsure of a plan, move on to the next one. Don’t settle for something just because it is ‘convenient’.

 

Like this article? Read about the common mistakes Malaysians usually make when purchasing medical insurance.

 

 

 

The post The Dos and Don’ts of Medical and Health Insurance appeared first on iBanding Making better decisions.

So what causes your life insurance premium to go UP?

Young vs. Old

1. Age

The fundamental rule here is: the higher the risk, the more costly the premium. For instance, a 21 year old has a lower health risk compared to a 55 year old. And since the premium rates are determined at the time of purchase, it is advisable to purchase them when you are still young. But how young?

If you are a male, it is most likely you will be getting married someday, if not already, and have a family who depends on you. Therefore life insurance becomes a necessity to you. This does not mean that you have to purchase one at the age of 22. But once you are married, it becomes crucial for you to have one, especially if you are the sole breadwinner in the family. Here it becomes not only critical, but it is also a smart move to purchase one as soon as you can, so that you can lower your premium cost.

However, be aware that you have clearly understood your policy and it’s premium rate structure. As it is not uncommon for insurers to increase the premium rate over time. Shop around and compare plans and quotes.

High risk sports and occupation

2. Lifestyle choice and occupation

If you are an adrenaline junkie who jumps off cliffs for fun, you will no doubt pay a higher premium on your life policy. Simply because you are perceived to carry more risk as compared to someone who is not involved in such high-risked activities. Similarly, if your occupation exposes you to risks that may endanger your life, such as a race car driver or a wildlife photographer, you too could be paying a higher insurance premium.

If you have a high risk occupation, it may be smart to shop around before purchasing your life insurance. As some insurers are less stringent than others in treating these high risk occupations and hobbies. But if high-risk sports and activities are your thing, you may just have to put up with the higher premium, if you are not willing to give up your hobbies.

Family medical history

3. Family medical history

One of the information that you have to disclose when purchasing a life insurance is your family medical history. Many chronic illnesses are hereditary, such as cancer, diabetes, and cardiovascular diseases. The insurance company uses your family history to gauge your risk in developing certain health conditions. Therefore, your premium rate will be higher if your family has a history of one or more of these illnesses.

Having to pay higher premium due to your family medical history isn’t something that is within your control. However, having one means that more than anything, you need a life insurance or medical plan urgently. So if you have a family medical history, you should consider purchasing a life plan (if needed) or medical policy while you are still young. This allows you to not only protect yourself at an early age, but also to lower your premium rate.

Smoker vs. Non Smoker

4. Smoking

Smokers pay higher premium than non smokers. The reason for this is because of the many health conditions related to smoking, such as:

• Cancer
• Stroke
• Heart disease
• Hypertension
• Chronic Obstructive Pulmonary Disease (COPD)

Smokers have a higher risk at developing these health issues and generally have a shorter life span than non-smokers. Insurance companies make no distinction between a social smoker or someone who smokes a pack a day. To them, a smoker is a smoker.

Insurance companies recognize a non-smoker as someone who is cigarette-free for at least 12 months. So to be eligible for a lower premium rate as a non-smoker, you need to quit, and stay quit for a whole year. This isn’t easy at all, but we all know the benefits of not smoking. Not only you save on your premium cost, you also save loads on cigarette while preserving your health!

Pre-existing health condition

5. Pre-existing health condition

Pre-existing health condition means any illness that you may have or have had before applying for an insurance plan. For instance if you have survived cancer, or have a history of heart problems, or if you suffer from diabetes. The risks associated with someone with pre-existing condition is much higher, therefore making the premium higher. Also, having a pre-existing health condition makes it harder for you to find an insurer willing to offer a life plan. And because fewer are willing to do so and choices become limited, this too causes premium price to go up.

So again, this is where buying a life insurance at a younger age is beneficial. As the risk of developing health conditions is lower.

Substance abuse

6. Substance abuse

Substances such as alcohol, marijuana and heroin are detrimental to human health. So if you have a history of substance abuse, you will be considered high risk. Insurance companies will assess the seriousness of your history and will price the policy according. If you are still consuming these substances, insurance companies may not be willing to cover you.

Premium rate also depends on the type of life insurance policy. The length of the policy and the coverage amount will increase the premium cost. A 10 year term policy generally will be cheaper than a 40 year term policy. This is because the risk of death occurring during a shorter period of time is lower. Term life policies are usually cheaper than whole life policy. The total coverage amount also determines the premium rate. The higher the coverage amount, the more you will have to pay in premium.

To ensure that you get the best quotes, make sure to take your time and shop around. Life insurance is a long term commitment, so you should find the best one for you. Do not settle with speaking to just one agent, instead talk to several representing different insurance companies. Take your time to do your own researches. If you need to speak to a reliable insurance agent, find one that is nearest to you on this online agent directory. Like our Facebook page too so you can get more tips on how you can save money on insurance.

The post 6 Factors That Increase Your Life Insurance Premium appeared first on iBanding Making better decisions.

Why do I need critical Illness insurance if I already have a Medical & Hospitalization Insurance?

This financial support is critical because these treatments are extremely expensive. However, your regular medical insurance (Medical & Hospitalization insurance) will not pay for them. Hence it is important to buy additional protection, because you do not want to be in the situation, where money is the determining factor between life and death. This becomes even more important with the rising treatment cost in Malaysia.

Financial impact of treatment cost for cancer as studied by the George Institute for Global Health.

As an example, we will briefly go into each one based on Prudential’s list of critical illnesses covered under their product Crisis Defender. However, many other insurance companies offer similar products and we from iBanding do not favor any of the insurance companies or products.

It is good to note that not all insurance companies’ definition of the 36 illnesses are the same, hence there may be very slight differences. So it is best to compare a few products from different companies before deciding on one that is right for you.

36 Critical Illness List:

1. Alzheimer’s Disease or Severe Dementia – Deterioration or loss of intellectual capacity arising from Alzheimer’s Disease or Severe Dementia as a result of irreversible organic brain disorders.
2. Angioplasty and other invasive treatments for coronary artery disease
   – Coronary Artery Balloon Angioplasty, urethrectomy, laser treatment or the insertion of a stent to correct a narrowing or blockage.
3. Bacterial meningitis
   – resulting in permanent inability to perform Activities of Daily Living
4. Benign Brain Tumor
   – A benign tumour in the brain or meninges within the skull.
5. Blindness
   – Permanent and irreversible loss of sight as a result of accident or illness.
6. Brain Surgery
   – The actual undergoing of surgery to the brain under general anaesthesia during which a craniotomy (surgical opening of skull) is performed.
7. Cancer
   – Any malignant tumour positively diagnosed with histological confirmation and characterized by the uncontrolled growth of malignant cells and invasion of tissue.
8. Cardiomyopathy
   – diagnosis of cardiomyopathy by a cardiologist which results in permanent impaired ventricular function and resulting in permanent physical impairment.
9. Chronic Aplastic Anaemia
   – Irreversible permanent bone marrow failure which results in anaemia, neutropenia and thrombocytopenia
10. Coma
    – resulting in permanent neurological deficit with persisting clinical symptoms
11. Coronary Artery By-Pass Surgery
    – Actual undergoing of open-chest surgery to correct or treat Coronary Artery Disease (CAD) by way of coronary artery by-pass grafting.
12. Deafness
    – Permanent and irreversible loss of hearing as a result of accident or illness.
13. Encephalitis
    – Severe inflammation of brain substance resulting in permanent inability to perform activities of daily living
14. End-Stage Liver Failure
    – evidenced by permanent jaundice; ascites (excessive fluid in peritoneal cavity); and/or hepatic encephalopathy.
15. End-Stage Lung Disease
    – End-stage lung disease causing chronic respiratory failure.
16. Full Blown AIDS
    – must be supported by the results of a positive HIV (Human Immuno-Deficiency Virus) antibody test and a confirmatory test.
17. Fulminant Viral Hepatitis
    – A sub-massive to massive necrosis (death of liver tissue) caused by any virus.
18. Heart Attack
    – Death of heart muscle, due to inadequate blood supply.
19. Heart Valve Surgery
    – The actual undergoing of open-heart surgery to replace or repair cardiac valves as a consequences of heart valve defects or abnormalities.
20. HIV Infection Due to Blood Transfusion
    – Infection with the Human Immuno-Deficiency Virus (HIV) through a blood transfusion.
21. Kidney failure
    – End-stage kidney failure presenting as chronic irreversible failure of both kidneys to function requiring dialysis or kidney transplant.
22. Loss of Independent Existence
    – Confirmation by an appropriate specialist of the loss of independent existence and resulting in a permanent inability.
23. Loss of Speech – Total, permanent and irreversible loss of the ability to speak as a result of injury or illness.
24. Major Head Trauma – resulting in permanent inability to perform Activities of Daily Living.
25. Major Organ / Bone Marrow Transplant – The receipt of a transplant of Human bone marrow, heart, lung, liver, kidney, pancreas as a result of irreversible end-stage failure of the relevant organ.
26. Medullary Cystic Disease – A progressive hereditary disease of the kidneys characterized by the presence of cysts in the medulla, tubular atrophy and interstitial fibrosis with the clinical manifestations of anaemia, polyuria and renal loss of sodium, progressing to chronic kidney failure.
27. Motor Neurone Disease – permanent neurological deficit with persisting clinical symptoms.
28. Multiple Sclerosis – A definite diagnosis of multiple sclerosis by a neurologist.
29. Paralysis of Limbs – Total, permanent and irreversible loss of use of both arms or both legs, or of one arm and one leg, through paralysis caused by illness or injury.
30. Parkinson’s Disease – resulting in permanent inability to perform Activities of Daily Living.
31. Primary Pulmonary Arterial Hypertension – A definite diagnosis of primary pulmonary arterial hypertension with substantial right ventricular enlargement established by investigators including cardiac catheterization, resulting in permanent physical impairment.
32. Serious Coronary Artery Disease – The narrowing of the lumen of Right Coronary Artery (RCA), Left Anterior Descending Artery (LAD) and Circumflex Artery.
33. Stroke – Death of brain tissue due to inadequate blood supply, bleeding within the skull or embolization from an extra cranial source resulting in permanent neurological deficit with persisting clinical symptoms.
34. Surgery to Aorta – The actual undergoing of surgery via a thoracotomy or laparotomy (surgical opening of thorax or abdomen) to repair of correct an aortic aneurysm.
35. Systemic Lupus Erythematosus with Severe Kidney Complications – A definite diagnosis of Systemic Lupus Erythematosus confirmed by a rheumatologist.
36. Third Degree Burns – Skin burns covering at least twenty percent (20%) of the total body surface area.

When should I buy Critical Illness insurance?

How can one decide which policy to purchase? Start by looking at your family history. Does any of your parents, grandparents, siblings or cousins have any of the critical illnesses that is known to be family related such as cancer? If the answer is yes, act quickly and get covered. You are more likely than others to be affected by a critical illness.

Often times, insurance company will sell you insurance only at a higher price, because you have a higher risk than others. But if you act now, you might be able to avoid this higher price. Speak to your trusted insurance agent to help you find out which product is best for you based on your needs and financial situation.

Cancer Cost in Malaysia

Read our article on Medical and Health Insurance to find out more why this plan is important for you.

Source:
https://www.malaysiakini.com/advertorial/318645
http://www2.prudential.com.my/export/sites/default/prudential_en_my/resources/producttables/36_CI_032016.JPG
https://www.prubsn.com.my/PruBSN/DownloadServlet?id=47&en_bm=url_en

The post Understanding Insurance: 36 Critical Illnesses, also known as Dread Diseases appeared first on iBanding Making better decisions.

In the chart below, you can see some of the most common health risks shown with their frequency (how often they happen) and the severity (how much they cost). Understanding the severity of these illnesses is useful, because if an illness is not considered as “severe”, insurance may not be required, as we should be able to easily pay with our own pocket money for it. Whereas if an illness is considered “severe” this usually means that we need to have at least RM 1,000 to RM 10,000 or even more readily available to pay for the cost.

Examples of Severity and Frequency of common health risks

Examples of Severity and Frequency of common health risks:

The type of risks can be numerous and all relate to your health. An example of the most minor risk is such as a common cold. Most often you are able to pay out of your own pocket for a doctor’s visit. However, medication can at times be quite expensive, so in such a case, medical insurance can be very useful as it can cover those costs for you. These kind of illness is pretty common and you could get them often, this makes the frequency for these illnesses high.

The second health risk is accident. This may not be something that happens as often as the common sickness. For example, when you break an arm, have a heart attack or is injured in a car accident. The hospital cost can be quite high therefore you would want to make sure that an insurance covers you for the treatment cost.

The last risk is the most severe: Death. This is a separate category of risk and will fall into Life Insurance. We will describe this in our life insurance article in more detail.

How do I find the best health insurance and what should I buy?

There are two main types of health insurance that you should consider.
1. Medical & Hospitalization Insurance
2. Critical Illness Insurance

There are other types of plans such as the Disability Income and Hospital Income Insurance that we will not be covering here.

What is Medical & Hospitalization Insurance?

This insurance will take care for most of the cost of treatment for illnesses and also accidents. You will get a medical card that serves as proof of coverage and in most cases you do not need to pay anything upfront during treatment, because the hospital will deal directly with the insurance company for payment. If you are employed, most companies offer their employees a medical plan (often called Group Hospitalization Schemes – GHS or GHSI). You should understand the coverage to decide if it is necessary for you to obtain additional plan as a supplement.

What is Critical Illness Insurance?

The second type of medical insurance is what most people in Malaysia do not have and should consider purchasing. This insurance will cover a list of illnesses (also known as dread diseases). Examples are cancer, diabetes, kidney disease, hearth attack etc.

You might wonder why would you need a Critical Illness plan, if you already have a Medical & Hospitalization cover. The reason is the high cost of treatment for these illnesses.

Take cancer for example, your Medical & Hospitalization insurance will only cover hospital and treatment cost of up to a certain limit. Let’s say RM 100,000. This limit is too low for most of the cancer treatments. Insurance companies call this amount “Annual Limit” or “Sum insured”. If this limit is reached, the insurance company will stop paying even though treatment is still on-going.

In reality, cancer treatment can go really high even into the millions. This means that everything above the set limit, you will need to pay on your own. This is where Critical Illness insurance plan becomes a necessity, so that you are covered for those costs above RM 100,000 or your “sum insured”.

To give a better idea of the impact of the exorbitant treatment cost for a critical illness such as cancer, here are some findings from a study carried out by George Institute for Global Health:

Financial impact of treatment cost for cancer as studied by the George Institute for Global Health.

Should everyone buy Critical Illness insurance?

Ideally yes. You don’t want to get into the situation where money becomes the deciding factor of life and death. However, not everyone can afford this insurance plan, and not everyone has the same risk in getting any of the critical illnesses. Speak to a qualified insurance agent, who will go through a list of questionnaire with you in determining if you should or shouldn’t acquire one.

One of the key questions that the agent will ask is your family medical history. This includes if any of your family members have any of the critical illnesses. If yes, then your risk in getting it yourself will be considered as high. Therefore, you should consider purchasing a cover for this known risk.

This concludes our first article describing Medical Insurance. If you have questions, please do not hesitate to contact us or write us a comment. We will be happy to clarify.

Source: https://www.malaysiakini.com/advertorial/318645

The post Understanding Insurance: Medical and Health Insurance appeared first on iBanding Making better decisions.

What are some of the insurance plans you should consider having?

We all know by now how important it is having protection in terms of insurance coverage. But are we covered for the right risks? There are so many options out there it can be confusing to decide what’s right. And with agents telling you you need all of them in order to really protect yourself and those you love really does not make matters easier does it?

So are you one of those who know that you absolutely need an insurance policy (or two) but don’t exactly know which one(s) to get? Good news! We are here to help make your life just a little bit easier by listing some of the most important ones that you should consider purchasing.

Below are the insurance plans based on priority and importance. However, do take note that this is a suggestion based on general needs but since insurance is largely personal, this means that individual needs is different so you should still carry out some research before going insurance shopping. So let’s start:

Drum roll please…

1. Medical and Health Insurance

Why do we think medical and health insurance is the most basic cover that everyone should have? Well firstly, illness, injury and accident can happen to anyone, at anytime. And secondly, medical expenses these days can cost a fortune, especially if treatment is required for an extended period of time.

I am sure many among us know of someone who has a heart condition or has even had a heart bypass done. Did you know that a single bypass surgery costs over RM 40,000 in Malaysia? This does not even include other related expenses including hospitalisation, consultation and follow up treatment. This can be quite a hefty sum to pay if you don’t have the money ready in your savings account. Many have been caught unprepared and resorted into selling their assets and properties.

Don’t think this concerns you as you are young and living a healthy lifestyle? Well consider this. Diseases such as cancer knows no boundaries, not age, gender nor lifestyle.
A study conducted last year showed that 45% of cancer patients suffered from financial catastrophe one year after diagnosis, while 11% did not make it past the first year. Other findings are as follows:

• 46% of cancer patients had used up their personal savings
• 39% could not pay for medication
• 35% could not pay for medical consultation fees or tests
• 22% could not pay for rent or mortgage
• 19% had to discontinue treatment

These numbers alone should be reason enough to make Medical and Health Insurance your top priority when deciding a coverage. When choosing a plan, understand the different types of policies available and find one that best suit your budget, needs and family medical history. If you are employed and your company offers a health plan for its employees, find out what are the coverage and if it is necessary for you to get additional plan as a supplement.

2. Motor Insurance

In Malaysia, like it or not, you are required to purchase a minimum Third Party cover for your vehicle. Third Party is the most basic of the three types of Auto Insurance policies that you can get in Malaysia. So this means that you can still choose to purchase another plan should you want a more extensive coverage.

The 3 types of plans are:

(A) Third party plan – basic coverage: covers death or injury to third party and lost or damage of third party’s properties only

(B) Third party, fire and theft plan – covers (A) plus loss or damage to your own vehicle due to fire and theft

(C) Comprehensive plan – covers (A) and (B) plus loss or damage to your own vehicle due to accident

You might be asking, “wait a minute, what about me?”. That is correct, these policies do not cover your own injury or death due to automobile accidents. See why we think Medical and Health insurance is important? Back to point number 1 you go.

3. Houseowners and Householders Insurance

Your house is probably going to be the biggest investment you will ever make in your life, so we advise you to protect it the best way you can – with an insurance cover. The basic plan that you can purchase to protect your house is the Fire Insurance policy. In Malaysia, if you purchased a house with a bank loan, the bank will make it compulsory for you to acquire a Fire Insurance for the said property. This policy compensates you for loss or damage to your property due to fire, lightning and explosion and it covers the cost for reconstruction, replacement and repair.

There are other plans and/or extension that you can opt for apart from the basic Fire Insurance plan. This may include damages caused by other perils such as flood, subsidence and riot.

4. Life Insurance

Not everyone needs a Life Insurance policy, as we have covered in our previous article “So You Think You Need a Life Insurance Policy?”. But if you happen to be someone who does need it, you should make it one of the top priorities in your life. Don’t wait till you are 50 or have been diagnosed with an illness to get one. Buying life insurance while you are still young and healthy means paying a lower premium price since you are considered low risk by the insurance companies which in turn means you save on thousands of ringgit.

The post Insurance Policies Everyone Should Have appeared first on iBanding Making better decisions.