Jan 10 2024, 04:18 PM
QUOTE(contestchris @ Jan 10 2024, 04:09 PM)
For the second time in 3 years, I’ve received a letter on the increase in cost of insurance for my ILP’s medical plan. The quantum of increase is rather steep at 35%! This has resulted in increases to my monthly premium.
From what I gather, this will likely continue happening every 3 years or so. The future quantum of increase might well be higher than 35% as the good risks depart the medical plan and the bad risks (with substandard health resulting in high claims) remain.
What’s the best way to deal with this issue? It seems like the sustainability projections at the start of the policy are a joke and wholly useless as in just a few short years, there have been multiple repricing exercises and the premiums have been increasing.
There is no 'one size fits all' answer imho. I too have seen my premiums increase significantly and there is no doubt that alternatives must be found. If you can afford it and your current and short term health risks allow it, we are thinking of going the 'self insured' route, whereby we put 50k pa or thereabouts into a high interest savings acount and, after just a few years, you have a pot of money that will cover most illnesses and operations.From what I gather, this will likely continue happening every 3 years or so. The future quantum of increase might well be higher than 35% as the good risks depart the medical plan and the bad risks (with substandard health resulting in high claims) remain.
What’s the best way to deal with this issue? It seems like the sustainability projections at the start of the policy are a joke and wholly useless as in just a few short years, there have been multiple repricing exercises and the premiums have been increasing.
We see it as being almost analagous to the renting v buying property argument. In this case, if you remain healthy you keep the money to pass on to the next generation, if you are not healthy then your costs are covered, but either way, you remain in control of your finances and medical choices.
Caveat the above with saying that this advice applies to Malaysia only. If you are travelling globally then individual health insurance per trip (including repatriation) is a very good idea.
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