QUOTE(littlerainbow2016 @ Jun 24 2017, 01:12 PM)
My spouse and I are contemplating on whether or not we should purchase medical insurance for our 2.5 year old at this point in time.
Currently, our child is covered by our employer's insurance as part of our staff benefit. So, in any case there is a need for hospitalization, it will be fully covered. For spouse's employer, there is an annual limit, for my employer, there is no limit.
My spouse and I have different views on the objective of getting medical insurance
i) My view
- In case something happens to either myself / my spouse or both of us, the appointed guardian for our child will not have to worry about the medical expenses if the need arises as a medical insurance is already in place.
2) Spouse's concern
- To lock down the premium price while he is still young and healthy. This is with the belief that the premium will increase with age.
- As a form of investment for the child's future
Questions
3) Should we purchase now or wait until our child is >5 years old as was informed that the premium for children below 5 is higher due to the higher risk?
4) Our child is only 2.5 years old now. If lockdown now, probably 10-20 years down the road, the situation is going to be very different and what are the chances that the existing plan would be able to meet the needs in the future?
Figuring out how to strike a balance for our expenses mainly because of limited budget and don't want to over-insure (as currently fully covered by employer so won't be using personal insurance as long as we're alive and working)
1) You may include a single or double parent payor and appoint a (third person) contingent assured to the child's policy. Touch wood, should the scenario where both parent's are not around, the policy premium payment will be waived and the contingent assured will be able to take over the policy until the child is 25 yo of age.
Once the child has attained 25, he/she will be able to take full control of the policy and decides if he/she wants to further continue or even upgrade the plan.
2) Yes, insurance is only available when we are healthy. One of the problems to get child policy is when the child gets older say 5-7 yo as many faced eating disorder causing over weight of which it may complicates getting medical insurance.
As for the investment for the child's future, it depends on whether do you include any savings to the policy or purely buying it for protection.
Knowing exactly how much you need for the child's education (including the inflation factor, spoken to a few colleges and it is most safe is to foresee an 7% inflation per year) when he/she hits 17/18 yo will definitely helps in planning.
Having said that, you don't have to put in everything into the insurance policy and diversify your investment portfolio, example property/ies.
As you had mentioned, the insurance policy is for just in case both parents are not around to care for the child, which is the worst case scenario.
3. For your info, a child's plan with medical (and no fancy riders) may cost in the range of RM150~RM180/mth. You may also add in small deductible (say RM300) to lower the premium. It is not always your child needs to be hospitalized and even if the child needs hospitalization, as you had mentioned will be using the employer's medical insurance.
If that premium amount is over your budget, then you may have to put the insurance plan aside, seriously.
4. Again this boils down to your budget. You may include riders that increases the medical limit once every year or two automatically if there is no claims, or you may choose to increase it along the way.
HTH
Jun 5 2017, 08:57 AM
Quote
). Also consider other General Insurance companies' standalone med card plan... At the end, I opted the GE's Great Medic Xtra Great Extender med card + ILP with minimum bare lift coverage.
0.1394sec
0.46
7 queries
GZIP Disabled