Sunday, April 7, 2013

Medical Card "Guaranteed Renewal" & "Waiver of Premium"

While shopping for a medical card or health insurance, always know what you are buying. Cheap products doesn't always necessary mean it is good. You get what you're buying for.

For a medical card that is not guaranteed to be renewed, once substantial claims had been made, the next year even if you are able to pay for the premium, the insurer will deny coverage to the medical card.

For a medical card that is guaranteed renewal, if you've already made substantial amount of claims, the next policy year the annual limit will be refreshed, and you can claim up to the maximum lifetime limit it allows you to do so.

However, do note that once a substantial amount of claim has been made, there is a possibility of the condition may be excluded or even rejected for UPGRADING or getting a SECOND medical card from the same or from another insurance company.

If the claim is under Critical Illness claim, policy with waiver will also waived the future premiums paid, subject to the terms and conditions as stipulated in the 36 Critical Illness.

Waiver of premiums here means the insurer will take over the policy and pay on our behalf and it does not mean that the policy is FREE.

For example, if the person was diagnosed with cancer at age 30, survived it, and the medical card is up to age 80, the premiums will be waived till age 80. 

However, at older age the insurance charges may still go up and if there is not enough funds to cover the increased insurance charges, we are still required to do top ups in order to maintain the policy.

Hence, if the policy is with a large Critical illness being attached to the policy, claiming that out would 'free' up the premium and the premium paid by the insurer will automatically be allocated to buying you even more units into your cash values. 

That would at least provide some peace of mind that the policy will not need to be top up at later years.

/promo Prudential medical cards are guaranteed to be renewed wink.gif