http://www.thestar.com.my/News/Nation/2014...lan-EPF-RM1mil/
I'm 1 of the 1331.

do we need to get medical insurance if we have dependants?

Wah, you are so OLD

Older people do have a different point of view as far as financial management is concerned. Their priorities are different, and although they have "makan more garam" (experiences life?) more than the younger ones, it does not mean their wisdom (and I mean it, they have wisdom) is applicable to the current generation due to differences in times, situation, condition, needs, political climates, economies, and more.

When you have dependents and not enough liquid assets that can be immediately used for the dependents' needs, nor will these liquid assets be blocked due to one's death, you do need insurance.

Remember, insurance isn't about investing your money, that is the mistake most agents AS WELL AS clients do when they talk about investment-linked insurance.

Insurance is about insuring oneself from things that you cannot predict, like premature death (before all of your financial needs are set in place). So if you have dependents, it's a good idea to insure for at least 3 years of their basic needs so the new leader of the family can start his/her life without being too financially-paralyzed (housewife wife can start to look for job but she has enough savings of 3 years to get started, for example) as well as tthe children's college education funds.

As now usually agents will promote Medical products with investment linked, compared to traditional medical insurance which is not as flexible, do you see it as necessary to get medical cards to the whole family?

"Less than 10pc of EPF members can live above poverty line, deputy minister says"

So says the headline, but in the article was just a bunch of stats given by the deputy minister in Parliament. It's putting words into someone's mouth... quality of report is bad.

The stats means nothing much without knowing how much was withdrawn earlier at age 50, and much earlier for housing & other reasons.

(480k = 24k over 20 years. The maths is too simple... that only simple-minded financial wealth CONsultant uses it. Yeah, he puts 480k under his bed and take out 2k every month.)

===================

"I'm 1 of the 1331."

While 69% has less than 50k at age 55.

I think it's high time for EPF to give more dividends to the lower groups by introducing tiers and caps... since EPF often complaint of having too much money that they can safely and conservatively invest without taking too much risk and yet get a reasonable return.

It depends on the situation, but generally yes.

Unless you are completely satisfied and have full faith with the public healthcare system, then it wouldn't be a bad idea to take at least the minimum medical cards.

1. Do note that from the first day that you are taking the medical card be it an ILP, or a stand-alone, you are already incurring cost. Don't be FOOLED by the agents that claim that the investment would cover the cost, they may, but that's disregarding the opportunity cost that you incur by not investing in other more direct and pure investment vehicles like ASB, unit trust, and even FDs!

2. The minimum card is just there to ensure that you have the OPTION to go to a private care if the government care leaves you with little or less than satisfactory services.

3. It is impossible to start taking a medical card if you have been diagnosed with a majority of illneses, the only time to get it is when you are currently healthy.

4. But what if you already have a company card that covers your family? That's good, use those company cards when you have to. But it will not last forever, usually until you have left the company or until your children has reached 18 to 25 years old.

I'm not trying to scare any of you into taking the cards, but dont listen to the majority of insurance agents pushing you the cards JUST BECAUSE. You need to balance your finances and needs and consider the kinds of medical cards that you need, if any!

EPF needs more than just one type of funds. How can it be possible that a youngster with 30 years of career time to be pooled in the same fund as an uncle who is about to retire in 5 years? The younger one can afford higher risks for better returns (if they are willing) while the elderly can opt for lower risk bond or money market funds.

That's the reason why a scheme was introduced to allow members to withdraw to invest into mutual funds. And they, later, defeat this purpose by setting a higher 'basic income' table...

I think EPF internally has had already many pools of investments... some for long term, some riskier, etc. Just that they need to set up dividend tiers similar to what banks do with fixed deposits with different interest rates at each level of tenure.

1. Yes i do understand that i will lose the opportunity to do investment by using the fund to purchase insurance, but what if the person was not investing and end up using the fund instead?

2. I do agree majority will opt for private health care if they can afford it.

3. So do you agree to get medical cards for children from age 1?

4. I do have company medical card which is kind of minimal, it will end anytime when i quit/retrenched by the company, as it could be due to health issues that i have to leave the company, dont you think it will be too late to get a medical insurance by then?

1. HA! Then of course it would be better to buy the medical card insurance especially FOR A DEPENDENT.

You see, in life, there are a few things that you need to set before you can start to invest - they are:

a. Your basic emergency savings, if for a dependent then the emergency savings is for them.
b. a medical insurance to avoid any medical complexities to drain your resources (emergency savings and your investments) away.
c. and then you can start to invest whatever that remains for your retirement, your children's education, and you mid-life enjoyment

3. Yes, because they are a dependent. DO NOT take any life insurance for them, focus on the medical cards since children's healthcare is very very very expensive especially when you need to go to the specialist. Without any insurance, their care if they need it will probably drain all your resources and worse, bankrupt you.

4. Exactly, imagine if you are diagnosed with an illness, say, cancer during your employment, the operation to remove the tumor and the immediate aftercare MAY be covered by the company. However, if you were fired due to lack of performance, or the company goes bankrupt, or you simply feel like leaving to pursue your own business dreams, you would be left WITHOUT any insurance. That's why it is important to take, at the very very least, a minimal medical card. It may seem redundant, but hey, it is all for you to decide based on your financial abilities and health levels.

I may be an insurance agent, but it is not my job to tell you that you need an insurance. You have to decide it for yourself because everyone is different.

Yes, they have started to divest into real estate and equities, and reduced their bond assets. In addition, they have also increased the overseas holdings especially in Europe.

But at the end of the day, everyone is sharing the same pool of returns and risks.

BOOO

I don't think there is any definite yes or no answer. I still advocates being a 'smart consumer'... you shop around, you compare, and buy whatever is necessary. And don't overspend.

And don't commit to anything long term when you're not too sure of your monthly discretionary income, ie. savings that you will have after all the bills, monthly installments and basic expenses; be it insurance or investment.

Will the expenses change in the next several years? New house, new car, holiday, children, etc in the near future? These are the types of questions you should be pondering too.

If you take it on another way, EPF are encouraging people to more than 11%. Is just that once you put in, you can't take out.
Difference between EPF and funds are EPF charge rm0 to admin your money and the money total amount will increase only.

Thank you.

Agree, I often use government clinic and my father using govt hospital service for his cancer treatment.

I see, thank you.

Well I just glad that I didn't smoke, neither kaki botol, although I like to drink beer, but only few time in a year when have event. Won't drink till drunk also.


Just sooner I need to commit of taking care of my parent since they are getting elder and commit to family expenses.

Only thing I spend on is my hobby, I like to collect figure yet only buy once in a while on what I like.

My late mum too.

Those life-threatening diseases like cancer, I doubt medical card limit can cover much too. Gotta go to government hospitals.

Reserve medical card for not-so critical sickness when u prefer to stay at more luxury private hospital and layan by pretty nurse

Government also got leng a moi ma.


Yet recently been offer by Great Eastern medical plan, year limit are 900k for medical treatment and usage < sound so harsh and so power .


Well, now just grad and work for 3 month, still poor stake and hope to stock up emergency cash flow and start go for proper financial plan.

I do believe if now a day youngster try to not often go for coffee, desert stuff, i believe we can save a lot from those expenses.

Medical insurance is still necessary as an individual to pay cost of hospitalization.

If not, the hospital bills are going to burn a hole in your wallet.

well... like everything in this world, there's a limit. we can't have EVERYBODY flocking government hospital and people not buying insurance and not going to private hospital... then government can't sustain the healthcare bill... price increase... everybody lose...

yes thankfully, with government hospital and also semi-private like ukm/um we managed the bill for 2 rounds of chemo for my dad. otherwise... ya, we wouldn't be able to afford it cause my dad ain't got insurance...

yes, about the reducing expenses thing, we can't have no spending as well... something needs to drive the economy... HAHA anyway, yes i do spend very little, but you know, just saying... so i encourage my friends who make money than me to continue spending

so yes, i still think medical insurance is necessary... because i don't want me to burden others like how my dad sort of became a burden... and well, when one is sick, one deserve some privacy and comfort after all...

BUT seriously, did you check with your employer? do you work in a big-ish company and check with HR about your benefits? like actual hospitalisation benefits...

also... when you are at the point of being approach by an agent, and seriously considering to get one, just drop by the forum insurance thread to get some input.

This post has been edited by adele123: Nov 20 2014, 09:50 PM

how much is the average premium for a basic medical card?this wont cover medicalcheckup right,just hospitalisation?