In this first episode, we proudly present Mr. Samuel Raj who speaks to us about the 5 most common mistakes Malaysian consumers make when it comes to buying their medical insurance plans.

Watch the video, or read the transcript below.

5 Common Mistakes When Buying Medical Insurance

Hi I’m Samuel, and I’m here today to talk about five common mistakes when buying medical insurance.

Mistake 1 – Delay in buying medical insurance

The most common mistake when people buy insurance is not buying at all, or even worse, they delay to buy medical insurance when it’s just too late.

You should never procrastinate purchasing a medical insurance as soon as you can afford to because you never know when illness or accident might hit you.

Buying insurance is a necessity in this day and age because the cost is really, really expensive if you were to pay it out of your own pocket.

Mistake 2 – Not disclosing full information

The second most common mistake I see in buying medical insurance is that the clients do not disclose their full medical history to the insurer or the agent.This is a very dangerous mistake and it could lead to your claims being rejected when you need it the most.

At the time when you are sick and have an accident, to have a rejection letter from the insurance company is not something you want to face.

Mistake 3 – Not reading fine prints

Third most common mistake when purchasing medical insurance would be not reading the finer points and the exclusions to your policy. Different policies have different exclusions and these exclusions range from types of treatments allowed, types of hospitals, and as well as the waiting periods. Some illnesses have longer waiting periods, some illnesses have shorter waiting periods. This is very crucial when you buy a medical insurance.

Mistake 4 – Insufficient coverage

Number four on the list would be insufficient coverage when purchasing when purchasing medical insurance. Some of your medical insurance policies which you purchased 5, 10 years ago might not be sufficient to cover the hospital charges and current day medical inflation goes about 10% per year in Malaysia and it’s very frightening to know that your medical card might not be enough and you need to top up your own cash.

Also sometimes clients rely too much on employer’s benefit for them and their family. This is very dangerous as this is not guaranteed and if they switch their jobs they might not have the coverage anymore.

Mistake 5 – Not doing comparison 

Lastly, the most common mistake I see throughout my career as an insurance agent would be clients not doing suitable comparisons for the coverage or with different companies or with different agents.

Some agents you know might be very easy to work with and some much more harder. So please guys, do your comparison. Use site like iBanding for example.

To contact Samuel, click on his agent profile here.

To learn more about medical insurance, refer and bookmark our ultimate guide to medical insurance in Malaysia.

The post Cakap-Cakap Insurance: 5 Common Mistakes When Buying Medical Insurance appeared first on iBanding Making better decisions.

No worries folks, that’s what we are here for. To make insurance easy for you and the rest of Malaysians seeking to know more about it and its importance!

So here we go:

9 things you absolutely need to know about medical card

1. What is a medical card?

When you purchase a medical plan, your insurance company will issue a card to you that entitles you to certain privileges as according to your medical plan. You can receive medical treatments (as long as the treatments are covered by your plan) at any panel hospital.

The best thing about it is perhaps the seamless registration and if your medical plan allows it – cashless admission and treatments. This means that you no longer have to worry about making the payment out of your own pocket, as your insurance company will take care of the medical bill for you.

2. How does your medical card work?

Most insurance companies offer several types of medical plans for customer to choose from. They usually vary in terms of coverage such as total annual and lifetime limit, hospital allowance, type of treatments covered and so on. The yearly premium (or price) you have to pay to the insurer will depend on the type of plan you have chosen. Once your application for the plan is approved, the insurance company shall issue you a card which you can present at any of its panel hospital to receive treatment.

To get admission into a hospital, you must first obtain a referral letter from a doctor that consents to the admission. If all goes well, your insurance company will issue a guarantee letter to the hospital allowing your admission. To avoid complications during admission and claim, it is best to check with your insurance agent or direct with your insurer before admission.

3. Standalone or Rider? What are they?

There are generally two types of cards offered by insurance companies, standalone and rider. Here’s a brief descriptions of what they are:

Standalone:

Standalone is a type of medical plan that you can purchase on its own. It offers comprehensive medical protection and nothing else (which is probably what you want). And since there is no additional coverage, the premium you pay for standalone medical card is cheaper than rider as you only pay for your medical coverage.

Some of the disadvantages of a standalone plan: There is no cash value generated from the premium that you pay. Much like motor insurance, you reap no monetary reward for the premium that you pay towards your standalone plan especially if no claim is made – unlike rider plan. Renewal of standalone plan is not guaranteed by the insurer. In case you are diagnosed with an illness and made a claim from your insurance company, the same insurance company may opt to not renew your policy for the following year. Aside from these, the premium for standalone medical is not fixed whereby it increases according to your age as well as medical inflation rate.

Rider:

Unlike standalone plan, a rider medical plan comes as an add-on coverage to a main plan, such as life insurance with investment-linked policy. Naturally the premium for this type of plan is higher than that of a standalone, as you are not only paying for medical coverage, but also part of your premium goes towards your life protection and savings.

Since part of the premium paid goes towards an investment fund, there is cash value generated which allows you to withdraw for personal use. This cash value is also useful to cover for any late premium payment. This means that your policy will not lapse as easily as a plan without cash value.

The premium rate for rider plan is fixed at the age of the insured at the time he enters into the contract. However, small increment may be made from time to time depending on rising medical inflation rate.

The downsides to medical coverage as a rider is that you will need to pay a lot more since you aren’t only just paying for medical coverage. Also your medical coverage will automatically terminated once the main policy comes to an end such as when the insured suffers a total and permanent disability.

4. Understanding co-insurance (or co-takaful)

Co-insurance is the amount, usually in percentage (10%, 20%) of the total medical cost which you have to pay on your own. Not all plans come with co-insurance so it is up to you to choose if you’d like to have co-insurance in your plan. The premium for a co-insurance plan is usually lower than a similar plan without co-insurance. We’ll explain below:

Scenario A – plan with co-insurance:
Monthly premium RM 200
Co-insurance: 20%

When the insured is admitted to a hospital for treatment, his total medical cost is RM 5,000. Because of the 20% co-insurance, he is required to pay RM 1,000 (20% of RM 5,000). While his insurance company will pay for the rest (RM 4,000).

Scenario B – plan without co-insurance:
Monthly premium RM 300
Co-insurance: None

When the insured receives his medical bill amounting to RM 5,000, he is not required to pay anything. Under this plan, his insurer pays for 100% of the bill.

5. Annual limit

Annual limit is the maximum amount you are entitled to for any medical claim made for one policy year. For instance, if your card offers an annual limit of RM 100,000, you can only claim for this amount from your medical policy for the said policy period. Should your medical expenses during that year exceeds RM 100,000, you would need to pay for the excess on your own. However, if you require more treatment the following year (based on policy year and not calendar year), you are again entitled to another RM 100,000 coverage.

Here’s what we mean:

First policy year – Total medical cost: RM 120,000
Insurance company pays: RM 100,000
The insured pays: RM 20,000

Second policy year – Total medical cost: RM  100,000
Insurance company pays: RM 100,000
The insured pays: RM 0

6. Lifetime limit

This is the maximum amount your insurer will pay out to cover for your medical claims during YOUR LIFETIME. Your policy will be terminated automatically once this limit is reached. Some plans however, especially standalone medical plans, come with an unlimited coverage.

Some people only place importance on this type of limit. The millions of ringgit in lifetime limit is usually are what catches their attention and assuring them that they have sufficient coverage, hence neglecting the importance of annual limit. We’ll elaborate why it is also important to pay attention to the sum of annual limit:

If a plan comes with an RM 1 million lifetime limit and an RM 100,000, the insured would need to spend RM 100,000 a year on medical treatment for 10 years to ‘enjoy’ the full benefit of RM 1 million lifetime limit. More often than not, a patient does not suffer from an illness over this extended amount of time. They are usually cured within a few years, or sadly do not survive the illness. With this in mind, it may be wise to place equal importance when considering a medical plan.

7. Daily hospital allowance benefit

For each day you spend in the hospital, you will receive a daily hospital allowance from your medical plan. The amount is fixed on a daily basis as agreed according to your plan. What you do with this money is totally up to you. This money may be what you need should you lose your income due to an illness or accident. This benefit also comes in handful when you are billed for certain medical expenses that are not covered under your medical insurance plan.

8. Room and board

Your card will also pay for your daily room charges during your stay in the hospital. A plan with an RM200 room and board means you are entitle to a room not exceeding that amount. If you wish to upgrade to a more luxurious room, you will need to fork out the difference in cost yourself. However, please be aware that this move may result in you having to co-pay a portion of the total medical bill. So please check with your agent or insurance company before requesting for a room upgrade.

9. Panel hospitals

Each medical plan comes with its list of panel hospital you can get medical treatments from. A plan with lower coverage and premium may not entitle you to a 5-star hospital. Therefore it is important to check the list of hospitals before making your decision to purchase. You should ensure that the hospitals are reputable as well as easily accessible to you.

If you are planning to purchase a medical plan and need to know more about medical insurance, it may be best to consult several insurance advisors. We hope that this article has provided a few pointers that can help you prepare.

The post 9 Things You Need To Know About Your Medical Card appeared first on iBanding Making better decisions.

What is tax relief?

Tax relief in Malaysia is issued by the Inland Revenue Board of Malaysia (IRBM). It helps taxpayers, to reduce a certain amount of money spent on necessities in a particular year —from your total annual income.  

The tax reliefs that you can claim ranges from the purchase of books, magazines, journals, sports equipment, insurance premium for education or medical benefit, housing loan interests, and much more.

But did you know that you can also enjoy tax relief for your medical insurance premium? Every year, as a resident in Malaysia you can claim up to a maximum of RM 3,000 under the education and medical insurance tax relief quota.

Here are 3 ways you can maximize tax relief with your medical insurance.

1. Claim 60% of your life insurance premium under medical insurance tax relief

In case you didn’t know, there are two types of tax relief that you can take advantage of. They are the EPF and life insurance tax relief, and the education and medical insurance tax relief. Each has different limits.

Individual Tax Relief Limit

1. EPF and life Insurance: RM 6,000
2. Education and Medical Insurance: RM 3,000

But how and when can you maximize the education and medical insurance quota? Let’s assume a scenario with the amount below:

EPF contribution: RM 6,000
Medical insurance premium: RM 2,500
Life Insurance plus rider premium: RM 1,000

Here as you can see, your EPF contribution has already maxed out the RM 6,000 limit leaving you no room to claim for your life insurance.

But not to worry. 60% of your life insurance premium is claimable under the education and medical insurance limit of RM 3,000.

First, you can include your medical insurance premium (RM 2,500) under education and medical insurance limit. You then take your life insurance premium (60% x RM 1,000 = RM 600).

And in total you would have RM 2,500 + RM 600 = RM 3,100. But since the limit is only RM 3,000, you can only claim up to RM 3,000 instead of RM3,100. This way you are maximising your medical insurance tax relief—fully.

2. Joint assessment tax relief vs separate assessment

This second point is more relevant to a married couple. According to section 45 of the Income Tax Act 1967, all individuals including a married person is considered as separate individuals— unless they choose otherwise.

Knowing whether to opt for a joint assessment or a separate assessment can affect your medical insurance relief limit.

When is a separate assessment beneficial?

A separate assessment is very beneficial for married couples who both draw high salaries.

Their combined income can result in a higher chargeable income which can be subject to a higher income tax bracket. Therefore claiming tax relief separately including medical insurance tax relief is best for this type of couple.

Scenario 1: Husband and wife opt for separate assessment.  

Example: Husband  and wife are both earning high salary

If Hakim paid RM3,000 a year for his medical insurance and his wife paid RM 3,000 per year, they each have a limit of up to RM 3,000.    

When is a joint assessment beneficial?

It’s a reverse situation for cases of the following type of couple. A joint assessment is beneficial for married couples where for example a husband is the higher income earner and the wife earns lesser to no income at all.

In this case, the husband is allowed to claim for medical insurance spouse relief of up to RM 3,000.

Scenario 2: Husband and wife opt for joint assessment.  

Example: Husband earns higher income and wife earns lower or no income

If Ragu pays RM 1,800 a year for his medical insurance and his wife’s medical insurance is RM 1,200, Ragu can maximize his medical insurance tax relief by adding both his premium together with his wife’s.

3. Save More with Your Medical Insurance

If you already have a medical insurance aside from your company’s group medical insurance, that’s great.

The reason behind this is because the group medical insurance provided to you is paid by your company. Therefore it’s not considered as your personal expense. What is considered as your personal expense is when you have to pay for a certain thing yourself.

In this case, having a medical insurance which you have to pay premiums by yourself, is considered a personal expense. Let’s look at how much you can save when you have a personal medical insurance.

Medical Insurance Premium (per year): RM 1000

Tax Rate: 26%*

*example is assuming the highest tax rate, which will depend on your salary range.  

In actuality, you stand to pay only RM 740 (RM 1,000 x 26%) a year instead of RM 1,000. You can save RM 260 in medical insurance premium alone.

Tax Relief for Resident Individual 2017 – Malaysia   Source:  Inland Revenue Board Of Malaysia 

Was this useful to you? Did it help you with your tax relief or with any tax relief problems? If so tell us what you think in the comment box below. And if you feel that this is an information worth sharing with your friends and family, go ahead and spread the word.

The post Tax Relief Malaysia – Want To Maximise Tax Relief With Your Medical Insurance? Read This! appeared first on iBanding Making better decisions.

It brings us back to the very basic fundamentals of insurance. Insurance is all about managing risk. Which means, it really boils down to how much risk can an insurance company afford on something— or in this case — someone.

To illustrate the difference, we take a look at the premium difference between men and women in HLA’s Major Medi.

The premiums for men from age 0 – 50 is lower than women in the same age group. For example, at age 36 a woman’s premium is RM 524.45 (plan MM200) which is RM 63 more than a male’s premium who is in the same age group.

If we look beyond the age of 50, the premium for men is higher than women’s while the premium for women becomes lower than the men’s. And this continues up until the age of 99.

Health Insurance Premium

Why is there this price difference between men and women?

Of course, insurance companies have a good reason for this.

Lifestyle and Life Expectancy in Malaysia

Generally, in Malaysia illnesses tend to appear in women more than men. Younger women will go through child bearing stages in their lives which can plague women with a number of complications hence the high premiums in a woman’s early years in life.

But child bearing is not the only reason. Women also have different risks of diseases or illnesses that men don’t such as breast cancer and cervical cancer.  

However, as men grow older — beyond 50 years old, they suffer from cardiovascular and other lifestyle diseases more than women.

The cardiovascular diseases that occur among Malaysians are partly due to the lack of quality in their lifestyle such as bad nutrition and not living actively on a daily basis.

Aside from lifestyle, the average life expectancy between men and women in Malaysia plays a role for insurance companies to determine premiums in health policies too. Life expectancy means how long is a person in Malaysia expected to live.

Malaysia recorded a rise in life expectancy. In 2016, a newborn baby boy can expect to live up to 72.6 years old while a newborn baby girl can expect to live up to 77.2 years.

In Malaysia, some insurance companies differentiate premiums by gender while other insurance companies such as Tokio Marine rate premiums by age. Given Malaysia’s health profile, a gender based pricing in health insurance policy helps insurance companies set premiums that reflect our risks, claims, and costs.

Are you looking for health insurance? Let us help you find it with our iBanding medical insurance comparison tool.

The post Why Is Health Insurance Premium Different For Men and Women? appeared first on iBanding Making better decisions.

There are tons of medical insurance plans to choose from in Malaysia. It can get pretty overwhelming, confusing and complicated at times because everyone is offering so many different variations of the same things.

This article aims to shed some light on the differences between a standalone and a rider medical insurance — which most of us Malaysians have. If you are not sure of how to look for the right medical insurance, this Infographic may give you an idea.

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</p> <p><strong>Source https://www.ibanding.my</strong></p> <p><a href='https://ibanding.com.my/medical-insurance-rider-or-standalone-infographic/'><img src='https://ibanding.com.my/wp-content/uploads/2017/08/Medical-Insurance-Standalone-vs-Rider-Infographic.jpg' alt='Medical Insurance -Standalone-vs-Rider (Infographic)' width='500px' border='0' /></a></p> <p>

What Is A Standalone Medical Insurance?

While there are many types of medical insurance, there are three types of cover that can make up a standalone health insurance.

1. Hospital and Surgical cover

This really means charges and fees for hospital related services and supplies such as room and board, surgery, operating theater, ambulance fee and consultations.

2. Critical Illnesses

A critical illness cover can be for someone who could be diagnosed with life-threatening illnesses such as angioplasty, stroke, or cancer. Treatments for such illnesses are usually expensive. Here is a list of critical illnesses that insurance companies in Malaysia offer.

3. Long-Term Care Benefits

This is usually beneficial for someone who has a chronic illness that took away his or her ability to take care of themselves. The benefits are like home care, live-in caregiver, housekeeper, hospice care or a private duty nurse.

How Are They Packaged?

Most insurance companies in Malaysia offer the three individually or combined. Either way, you will receive a medical card which you can use when you’re admitted to the hospital.

It can also be used for clinic visits or a check-up with your doctor at the hospital. When you’re short or out of cash, you can use the medical card without burning a hole in your wallet.

A standalone policy covers benefits such as room and board, unlimited lifetime limits, kidney, cancer treatments, surgical and operational fees. While some insurance companies offer coverage such as nutritional allowance, compassionate care allowance and much more.  

Renewal Conditions

Most standalone policies provide a guarantee that your policy will be renewed even though you’ve been diagnosed with an illness before your next renewal date. This is good to have. Here’s the reason why. Say if you were diagnosed with diabetes this year, and your policy is not a guaranteed renewal policy, the company has every right to reject your renewal.

Now, you’re left with zero coverage for next year. Adding to that, other insurance companies won’t accept your application either, because now you have diabetes and it’s a risk they are usually not willing to take.

If you are not sure, read your policy’s fine print or speak to your agent. Your agent can help you interpret the terms and condition. If you don’t have an agent, use iBanding to find and connect with an agent to help you.

Premiums In A Standalone Policy

Here’s the tricky bit. Even though your policy may be guaranteed for renewal the following year, it doesn’t mean your premium is guaranteed or fixed. Your premium could change the following year.

If you’re wondering why there are two factors that can affect a premium increase — age and medical inflation rate.

Insurance companies usually provide a schedule showing different amounts according to age group. So the older you are, the higher your annual premium gets.

According to Aon’s 2016 Global Medical Trend Rates Report, Asia’s average medical inflation is at 9.4%. And Malaysia’s medical inflation rate is at 14%. Typically, insurance companies revise premiums every 2 to 3 years.

What Is A Rider In Life Insurance?

Life Insurance

Ideally, a life insurance is for someone who’s looking to help their family members financially when they’re no longer around.

It’s never pleasant to think of the worse. However, it’s good to check it off your list – live a peaceful life without having to worry about your family.

An example of a life insurance is the investment-linked policy. Generally, when you purchase the investment-linked policy, insurance companies will offer a rider

Think of the rider as the meal add-on to your plane ticket. In that sense, you can’t really purchase the meal unless if you fly with the airline that you bought the air ticket from.

Riders

A rider can be a critical illness cover where on top of your investment-linked policy, it provides additional coverage when you’re diagnosed with life-threatening illnesses such as encephalitis, stroke, angioplasty or cancer.

When you have investment-linked plus critical illness as a rider, premiums will be channeled in two portions, one being the premium paid to your investment fund and the other to pay for your critical illness policy.

Comparing Medical Insurance Rider and Standalone In Malaysia

Typically, when you compare a rider and a standalone premium, you might find that a rider is cheaper than a standalone. But it’s only cheaper because it’s packaged together with life insurance.

With a standalone policy, its benefits are far more comprehensive compared to a rider — even though a standalone premium can seem higher, the coverage you get could be worth your money.

Then again, it’s always wise to ask yourself what you truly need. Some people are fine just opting for a standalone because they only need medical cover.  

But if you’re leaning towards getting coverage to secure your family’s future and need a medical cover for yourself at the same time, a life insurance plus a rider, could be ideal.

Are you finding it hard to decide between a standalone health insurance and a life insurance that includes a rider?  Share with us your experiences.

The post Medical Insurance Rider Or Standalone – Which Is Better For You? [Infographic] appeared first on iBanding Making better decisions.

Today, the internet is allowing us to search for medical insurance from multiple trusted sources. You can check on the company website, blogs, and newspapers. While it has helped in finding lots of information on medical insurance, it has also become time-consuming when comparing prices and medical plans. There’s just too many websites to refer to.

If you are looking for a medical insurance plan without having to hunt and gather information on your own, use iBanding medical insurance tool.

If you’re not sure how to use the tool, here’s an easy-to-follow guide to using the tool.

1. Go to https://ibanding.com.my/medical/

With iBanding medical insurance tool, there’s no registration required. All you need to do is key in your current age, gender and click the search button.

Your current age and gender will tell the tool to find the right prices for each insurance plan. Keep in mind that the insurance price will depend on your age and gender. So the older you are the more expensive the insurance.  

iBanding medical insurance tool will only compare standalone medical insurance. Which means It will only compare medical plans that are not tied to a life insurance.

The tool compares medical plans from over 10 insurance companies in Malaysia.

Once you click on the search button, the tool will immediately show a list. The tool will show the price per year, room and board, annual limit, lifetime limit, co-insurance, and deductibles.

Select and View Plan Details

When you click on More Details, the tool will show the medical plans. It gets easier because the tool allows you to view all the medical plans from different insurance companies all in one screen.

What’s neat is that you can also see ratings and reviews from other customers to get an idea of what other people thought of the insurance company. This is important because when you get sick or have an accident, the insurance company will pay for your expenses. Companies with bad service will make it difficult to get your medical expenses paid.

If you want to compare prices and plans by the same insurance company, you can do that too.

Click on Plan Details and the tool will pull out even more details for a particular product.  

If you think you’ve found the right plan, you have a choice to connect with an agent by clicking Find Agent.

iBanding’s agent directory is beneficial to you as it is contains useful information for you to understand more about the agent that you’re looking at.

It provides a sense of clarity because the directory includes information such as the name of the agent, the type of insurance they specialize in, the insurance companies they represent and most importantly – feedback from actual customers about their service.

2. Refine Your Search

You can further refine your search based on price per year and minimum annual limit. You can also refine your search based on co-insurance, deductibles, and lifetime limit.

Change Annual Limit

By default, the tool will show you insurance plans from the lowest price to the highest according to your age and gender. You may see that some annual limits are lower than others even when the price is much more expensive.

For example, if the annual limit for the first plan is RM 240,000, while the second plan is RM 50,000, it might be worth while to consider the first plan because the price difference is only RM18.53 per year.

Annual Limit is the maximum amount that the insurance company will pay out for any claims in one year. This limit will reset every year.

Co-Insurance and Deductible

By default, the tool will show you an insurance plan that does not have any co-insurance or deductible. This is best because when you are sick you don’t pay anything additional. But this also means that the insurance can cost more.

 To see if there is a cheaper plan with Co-Insurance or Deductible, then click on “Yes” and you will only see plans that have co-insurance or deductible.

Lifetime Limit

By default, the tool will show all plans with lifetime limits. So, with the same example, you can see that the first plan has a lifetime limit of RM 1,200,000 and the second plan only has RM 200,000. There’s really not much difference in price. It is less than RM20 per year. But the first plan offers RM1 million more Lifetime Limit then the second one.

A Lifetime Limit is a maximum amount that the insurance company will pay out for any claims you make within the entire policy life, including renewal years. Should your medical costs become higher than the lifetime limit, you will need to pay for the additional cost yourself.

This limit will not reset like an Annual Limit.

That’s it. An easy-to-follow guide on how to use iBanding medical insurance tool. In our efforts to help Malaysians enhance search and compare medical insurance, we hope that the tool allows consumers to save time, make informed decisions and get covered with the right medical plan.

The post A Guide To Using iBanding’s Medical Insurance Tool appeared first on iBanding Making better decisions.

iBanding Services Sdn. Bhd., the same company who brought Malaysia its first insurance and Takaful agent directory in 2016, today introduces an online medical insurance comparison tool.

The post iBanding introduces standalone medical insurance comparison tool  appeared first on iBanding Making better decisions.

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.

Many have asked why health insurance is important. Simple. Health insurance policy covers your medical cost, including hospitalization, treatment, surgical, and consultation charges. It gives not only the financial protection when you need it the most but also the peace of mind that you are covered should anything were to happen to you. But buying health insurance plan can be a tedious task. There are many factors to consider. Many do not take the time to do their own research before purchasing a plan and solely rely on friends’ suggestions or the recommendations of an agent. Here we outline 5 common mistakes when buying a health insurance policy.

 

5 basic mistakes Malaysians make when buying health insurance:

1. Delaying… for whatever reason

We said it many times that health insurance is one of the most important covers you need. Many actually realize it but choose to ignore it. While others pray that nothing bad will happen to them, “not yet anyway, not till I can afford a medical card“. But it seems like that day never comes. Cause as soon as they start to earn a little more, there’s always something ‘more important’ they need that money for. Don’t. You need health insurance and you need it asap. No matter how young, how healthy or how financially constraint you are. At least start by calling a few agents and find out what are your options. They offer advice for free!

Don’t have to break the bank to buy yourself a health plan.

2. Buying a policy you know you can’t afford

Your agent may suggest a plan that covers you from every possible scenario under the sun. It sounds great, it makes you feel safe. But only you know if you can really afford it. Be honest with yourself and be realistic with what you can afford. Understand your financial situation and your needs. Speak to several agents and compare the various products offered before deciding on one that benefits you the most. You may not be able to afford the cover you want, but you can always upgrade it later when you are financially more sound.

 

3. Too much or too little coverage

Medical inflation rate in Malaysia is at an average of 10% per year. If this number doesn’t mean anything to you, have a look at the image below. This should give you an idea what 10% inflation rate today would look like in 20 years. We aren’t telling you to buy a policy that covers you for 20 million ringgit coverage, there is such thing as over-insurance. The premium isn’t cheap and you might as well use that extra money for investment. This doesn’t mean that you should under-insure yourself either, especially if you can afford it. So it’s again best to get professional advice.

4. Not considering other insurers or products

Many Malaysians are hesitant in changing their insurance provider, or they are just too lazy to look for another. The insurance industry is dynamic. To keep up with competition, insurers are always introducing new and improved insurance products to the consumer. Therefore we highly advise that at the time of renewing your policy, find out what other products are out there offered by other insurance providers. You may even end up with an even better deal than your previous policy!

Don’t hide your medical record!

5. Not sharing medical history

Not sharing or declaring your medical history at the time of purchasing a health insurance plan is a huge no-no! Many people conceal their medical history and smoking habit to keep their premium low. Keeping crucial information from the insurance company may lead to rejection of claims. It is absolutely not worth it to lie on your insurance application because the consequences can be dire. Why? One, if your lie is found out when you are making a claim (i.e, when you needed the money the most), your claim will be rejected, leaving you with a hefty medical bill. Two, the insurer may sue you for all the claims that you have made in the past which they have paid for. Not worth it guys!

 

In Conclusion

As said earlier, there are many factors you should consider before buying an insurance plan. It is best to clearly understand your intention, needs and wants rather than taking cover unnecessarily. Asses all your risks and as well as your financial position.

If you need to speak to a reliable insurance agent to find out more about the right health insurance plan for you, you can find one here.

The post 5 Mistakes When Buying Health Insurance Policy 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.