Medical Insurance

DO YOU NEED MEDICAL INSURANCE?

Medical Insurance or also known as Hospital Insurance, pays for your hospitalisation fees up to a specified limit.

When it comes to medical care, you want:

• The choice of the best doctors who may only be available in private hospitals.
• Be able to stay in good ward classes so that you have some privacy.
• To be able to access medical care immediately and not wait in a queue for months.
• To be able to meet extreme hospitalisation costs that you cannot afford on your own.

WHO SHOULD BUY MEDICAL INSURANCE?

Medical insurance is the most basic level of insurance that everyone should get. Even infants should be covered by Medical Insurance.

If your employer already provides some medical coverage, consider buying a policy with a higher deductible so that the premium rate is lower. Remember that you may need medical attention if you are in-between jobs or if your new employer does not provide medical coverage. Coverage provided by employers will also have a limit. This means that you will need to cover very large medical expenses that will be in excess of your employer's coverage.

If you are hospitalised for a period of time, your employer may terminate your employment, leaving you with no medical coverage. Furthermore, should you change jobs, your coverage from your employer may not cover pre-existing conditions.

HOW MUCH AND WHAT TYPE OF MEDICAL INSURANCE SHOULD YOU BUY?

There are a few considerations when buying Medical Insurance:

• Geographical coverage: If you want to be able to access doctors from anywhere in the world, or intend to relocate, you should get a policy that provides worldwide or regional coverage.

• Claim limits: The claim limits may be set on types of claims or annual overall claim limits. The higher the limits, the more you can claim for each hospitalisation. The best coverage plans offer an "as charged" basis. That means that the plan will pay for whatever the hospital charges you, subject to any deductibles.

• Deductibles: Deductibles mean that you pay the first dollar of the fees up to the deductible amount. A deductible is a useful way to lower the premium rate if you are concerned about large medical fees and are willing to pay for smaller medical expenses, or if you have some other coverage from your employer.

• Scope of coverage: If you intend to give birth in a few years, you may want to consider purchasing a policy that covers maternity hospital expenses. Note that there is typically a waiting period before you can claim for any maternity benefits.

• Maximum renewal age: Choose a plan with a high maximum renewal age as you do not want to be left without insurance coverage as you get older.

WHAT DOES A MEDICAL INSURANCE PLAN LOOKS LIKE?

Medical insurance will provide coverage for inpatient medical expenses.

Do note that Medical Insurance may not fully pay for actual medical expenses incurred. Some policies may also have deductible and co-insurance features. Most policies will usually include limits for each illness, disability, by policy year or lifetime.

Other key types of coverage that may be included in a Medical Insurance product include:

• Day surgery expenses.
• Outpatient expenses.
• Pregnancy (childbirth)expenses.
• Newborn medical expenses.
• Dental expenses.

Premium rates for Medical Insurance will increase with age. While the premium amount is not guaranteed, insurers typically offer guaranteed acceptance of the policy for renewal.

The above are subject to the definitions as set out by the insurance companies.