Monday, June 15, 2015

Types of Insurance in Malaysia

There are few types of insurance and each serves a different purpose. 

People buy insurance is for financial protection and for risk transference.

The risk transfer here means that by paying a fee to the insurer, the insurer in turn provides insurance cover for a particular event.

Basically the life insurance can be segmented to the life insurance, critical illness, medical insurance & accidental insurance.

Life insurance is meant to replace the income of the breadwinner of the family if sudden death were to occur.

Example if the family needs at least Rm5k per month to pay for bills, food, tuition fees, clothings, that translates to Rm60k per year or Rm600k for 10 years. 

This doesnt even take into account the education fees if he has a young 1 yo daughter nor does it take into account the inflation.

The purpose of the Critical Illness is to provide a lump sum of money if the person being covered is down with a critical illness.

Example Stroke, bedridden and unable to generate an income for the family.

This is even worse than death because on top of the daily family expenses, the family needs money for the medical bills.

This is where the medical insurance comes in. A 60 days ICU due to Stroke at a private hospital can costs Rm400k.

Of course the medical insurance is optional if you think the general hospital is goid enough for you. If you do buy the medical card, there is option to get treatment from second opinion. Choice is yours.

Accidental insurance pays in the event of death due to accident or lost of limbs die to accident. 

Example if a programmer lost both of his arms due to accident, will it impact his ability to generate an income?

Tuesday, June 9, 2015

MM2H Expats Insurance

Those whom are applying for the Malaysia My 2nd Home (MM2H) Program are required to purchase health insurance if they do not have a valid health insurance that works in Malaysia.

A valid health insurance in Malaysia provides hassle free admission to both the private and public hospital in times of medical emergencies.

Here are some of the general guidelines for people applying for Health Insurance:-

The Age of Applicant
The Malaysian health care insurance can only be purchased  by individuals whom are below the age of 70

If accepted, it is able to provide coverage until the age of 80, 90 or 100 (depending on the how long you plan to stay in Malaysia).

For the applicants whom are above the age of 70, your only option is to purchase International Insurance such as Bupa, Red Cross etc.

The Health of Applicant
a. Applications that can be approved - Healthy with no known pre-existing medical condition

b. Applications that may be considered - Borderline cases (Blood pressure, cholesterol, depending on the Doctor's findings) 

c. Applications that may be declined - Diabetic patients, Severe obesity, Cancer patient, kidney dialysis patient

To read the Frequently Asked Questions (FAQ) on the MM2H Insurance Application, please Click << HERE>>

The 'medical card' as term by locals will allow the insured to get treated at their panel clinic/hospitals in Malaysia based on the agreed amount being insured.

Whenever people shop for a medical card, mostly people are incline to only look at the cost and the coverage being offered while forgo some of the most important aspect, which is the policy contract. 

Do take the time to study the contract and in insurance, anything that sounds too flowery we need to raise our alarm to inquire more. One of the most important aspect is the renew-ability. For example, plans that are renewed annually vs life insurance with medical rider. 

Most of the plans that are annually renewed are port-folio renewal whilst plans with life insurance with medical riders. Under the port-folio renewal, if the claims are getting too excessive, it gives the insurer the right to remove the product from the market but they are required to honor the coverage until the end of the term (which is one year). 

Removing of a product from the market will means that should you need to get covered the next year, you will be subjected to undergo the health check as you are buying a new product. This is not a problem if we are still healthy, and if not the coverage may be declined.

Some insurer also have dodgy contracts with "Alteration Clause" whereby if the claims gets too much, it gives the insurer the right to change the benefit structures of the insurance plans by giving the client a 90 days written notice. Do look out for the word "Alteration Clause". Do not be surprise that it exists in some of the top insurer in Malaysia.

The Malaysian class health insurance policy does not cover dental (unless it was necessitated by an accidental injury)/cosmetic surgeries. This is across the board for all insurer in Malaysia as it is regulated by Bank Negara Malaysia.

The costs for dental is rather cheap though. Do read on the "Exclusions" of what is not covered which is available in most of the insurer's brochure. Pre-existing/congenital illness is not covered.

There is also a 30 days "Waiting Period" for common ailment like flu and fever. There after, there is also another 120 days for "Specified Illness". For accidental cases the coverage is immediate upon policy acceptance.

The last entry age for anyone to get health insurance (which is able to provide cover till the age 100) is before your age 70 next birthday. The most important factor that the insurer consider is the health status of the person being insured prior to approving of the insurance.

Of course in any insurance, you are required to declare albeit fully your health status, risks involve (for example smoker vs non-smoker), occupation (manual labor vs office desk job), any prior hospital admission/history, even family history. Failure to declare fully (especially on the health portion) may render the policy null and void. 

The bill will be paid directly from the insurance company to the hospital except for small hospital deposits, pre & post hospitalization and outpatient claims which is based on reimbursement basis.

Do note that as a foreigner your cover is only applicable in Malaysia. Treatment must be sought in Malaysia. Should you need to travel for a short duration, you'll need to get travel insurance with medical.

However, as a local buying a Malaysian class policy, coverage for overseas is also limited to 90 days. During that 90 days, they will have to pay and with the original receipt claim from the insurance company when they return to Malaysia. After the 90 days, they will have to get the treatment in Malaysia.

Monday, June 8, 2015

Private Hospital ICU Costs

Many people does not know that for Intensive Care Unit (ICU) cases, the medical bills can be rather staggering, shocking even!

Spoken to a prospect that has a friend admitted to a private hospital due to Stroke, for 60 days in the ICU.

The hospital bill was well over Rm400,000!

Do check your health insurance on whether it is able to work in times of crisis.

You may also look at PruValue Med, which offers up to Rm2,000,000 medical coverage.

Leave a message if you need a quote.