Here is my situation :

1) <30 years old
2)My company will provide medical benefit until my retirement for our family (56 years old)
3)Currently have no major illness
4)My worried is after retired if i still with this company i will not be cover anymore and by that time it maybe too late for me to buy medical insurance as it will not cover any illness that i already have.

My question is :
1)What i need to do?Should i buy medical insurance now?
2)If yes, what type of medical insurance should i buy?My oficcemate bought a medical insurance with Prudential with RM150+ per month.He inform me this is investment link policy.Should i follow him?I don't have a good knowledge and experience with medical insurance buy i really plan to buy one for our family but don't know what to chooose.I surf Prudential and Great Eastern benefit but there is not enough information given there.
3)Some of my friend there is a lot of hidden clause in the medical insurance policy.Is it true?For e.g. insurance company change the clause without informing us such as room eligibility, and etc...
4)Which insurance company i should choose?From the blog i heard people said that Prudential is one of the best


Appreciate any reply...Thanks....

i also want to know

I try to answer your question.
Your company medical benefit is medical card or 36 critical illness ?

For medical card and 36 critical illness (note: both are different types of insurance):
If your company have provide medical card or 36 critical illness for you, you wouldn't need to buy medical card or 36 critical illness now. The oldest age eligible to buy your first medical card or first 36 critical illness from insurance company will be around 60 years old (may have plus minus 10 years due to different insurance company policy). Therefore, you can start buy your medical card or 36 critical illness after you retired if you already got it now.

There are no hidden clause in the medical insurance policy generally, and insurance company or agent will inform policy holder if insurance company change the clause.

There are many types of insurance actually, I will just simply explain to you each of them:

1. Medical card - Cover the expense when admit to hospital, must stay at least one night.

2. 36 critical illness - Insurance company will pay one lump sum money to the policy holder if the policy holder detected either one of the 36 critical illness.

3. Whole-Life insurance - Insurance company will pay one lump sum money to the policy holder if the policy holder death.

4. Endownment insurance (For long-term saving) - Insurance company will pay one lump sum money after the policy maturity OR Insurance company will pay the policy holder every year after policy maturity. In addition, insurance company will pay one lump sum money to the policy holder if the policy holder death.

5. Investment link insurance (high risk) - Same as Whole-Life Insurance but Whole-Life Insurance premium is fix every months. However, Investment link premium may not fixed. Insurance company will use some of your premium to invest in fund. If good return, the money will use for your future insurance premium, Eg: you pay RM150/month now, after 10 year, you are paying RM150/month also. If return bad, you may need to top up money for future insurance premium, Eg: you pay RM150/month now, after 10 year, you may need to pay RM160/month.

6. Total permanent disability (TPD) - Pay 1 lump sum to the policy holder if the policy holder is handicapped (eg: losing two hands). Normally TPD is come together with Life insurance.

There will be some condition in each types of insurance and it is hard to type all in here.

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Added on May 25, 2009, 12:57 amIn addition, actually all the insurance companies such as AIA, Great Eastern, Prudential, ING and so on are similar. There will be some pro and con among the insurance companies, so there are no BEST insurance company.

This post has been edited by YuNGSeNG: May 25 2009, 12:57 AM

I try to answer your question.
Your company medical benefit is medical card or 36 critical illness ?
I think so.My company bought group medical insurance.I don't need to pay anything to get a treatment, hospitalization or etc until i retired.

For medical card and 36 critical illness (note: both are different types of insurance):
If your company have provide medical card or 36 critical illness for you, you wouldn't need to buy medical card or 36 critical illness now. The oldest age eligible to buy your first medical card or first 36 critical illness from insurance company will be around 60 years old (may have plus minus 10 years due to different insurance company policy). Therefore, you can start buy your medical card or 36 critical illness after you retired if you already got it now.

What happen if after i retired i got some major illness or disease .e.g. "kencing manis or darah tinggi".Will i be covered too if i only bought it after i retired?I thought medical coverage only covered if we don't have any illness yet when we bought it.If already have, it will not be covered.Appreciate ur answer.

1)

a) buy major illness insurance
b) buy H&S for family members, lower priority on yourself
c) buy one plan that can fit in above 2 and yet give positive return at old age ( highest premium )

2) only if you like option 1c) above. if Prudential go for investment link, if GE go for the latest endowment or whole life plan.

3) all clauses are similar and most people don't read them so it 'appears' hidden. Yes insurance company has the right to do that and you have the right not to continue with them. This applies to H&S only, terms in Major Medical ( 36 illness etc. ) are more stable. Only H&S will evolve into less benefit or higher price within a short time. major medical should be quite stable.

4) no such thing as which company is the best. Most insurance companies are similar, if you don't plan to do all things youself, you will need an agent who can serve you. So picking the right agent for you is more important.

If you are in Kepong I know someone from ING and if you are in Taipan I know someone in Prudential

lastly, are you sure you can work in this company till 56 ?

because ... if not, you will need a totally different set of advices

This post has been edited by mtsen: May 25 2009, 09:59 AM

1) Yes if you fell there's a need for you & your family members as you are the main person generating income for the family
Normally for this type of cases i'll advice my clients to get a Crictical Illness plan 1st & get a medical plan later when they are near to retirement

2) Hmmmm a link plan is okiz as you are still young & mayb you could get the basic such as CI/Life/Payor in the plan with RM150 a month
Medical is optional weather to include or not . . . but if include the basic coverage will not be sufficient

3)Everything is in black & white very transperant nowdays for insurance policy . . . & all client will have a 14 days free look period on the policy
If not satisfied with the term & condition, 100% money back guranteed

4)Yes we took over GE in terms of sales . . . but GE still remain the biggest in Malaysia in terms of sales force
Prudential/ING/AIA have a good reputation in claims thats from my point of view
But a responsible agent play the more important role rather than the company itself

Hi, following others' financial planning is not encouraging. Because every person has different commitment and financial goal. So, a proper and customized planning is needed for your own.

I am in the same situation as yours now.

But I have a comment on some forummers' suggestion - buy the additional medical card after retirement..

Shouldn't we first look at the medical coverage that is bought by our company? I mean most of the time, company is buying the cheapest med card or lousy coverage, whichever that they can find ( at least my co. is! ).

Assuming mine MC , it is covering :
1. Annual Limit of 50K
2. 12.5K per disability - isn't this evil?
3. a 200 board/room daily
4. In-patent, daycare, or out-patient (per disability) is as charged -
5. Out-patient Kidney / cancer treatment, max RM8K per annum only!
6. Accidental death - 3K.

and the premium is about RM370 if i remember correctly...

So, look back at point 2 - 12.5K , is that enuf to pay if one happens to step into operation theatre? I'm shivering after knowing the detailed of this plan!

So, getting an extra med card is a must now since age is catching up.. As I know if anything major happen before I grab another card, it will be tough for me to get one additional coverage later, surely some kind of exclusion will be there if ever any insurance co. even thought of offering me one.. Am I correct then?

So, now i'm looking for a top-up plan, which I've found out one just now.. Will post the details out in next post to share with you guys, let me know your view then...It is not from any of the Big Five or Six insurance co. though..

This post has been edited by numbertwo: May 29 2009, 04:51 PM

I still can't find the answer for the following :

1)Is it medical card will only covered for the illness that we don't have?My friend inform me that even when he purchased medical insurance from Prudential, there is no medical check up done.

2)What will happen if let say we never use the service and after maturity,what will happen to the money that we already paid.Is it will be refund or it consider 'hangus' as for hire purchase insurance.Paid every year but never claim it and next year paid a new one again.

3)What is the pro and con if i only bought this medical insurance after retirement?

4)Any other good suggestion?i read the friend medical insurance policy but i don't understand it fully.is there any way i can find a simplified or summarize insurance policy in a layman term?

Go find a few insurance agent from various companies, let them explain to you.
Then if you have any questions, you post here, we explain.
Don't always "friends say" they are not up to date with the newest insurance products, terms & conditions.

Unfortunately insurance policy is meant that way so that it can be used in court (in case of any dispute).

The best way is meeting up a professional insurance representative to explain to you clearly by reviewing your existing policy.

Medical Card covers your hospital bill only. There is usually a life time cap based on your premium. I read somewhere that your cap should be 10 times your current annual salary. MedCare covers any event of hospitalization irrespective of cause, NB. Outpatient treatment are usually excluded. Seeing a GP outside are also generally excluded.


A traditional Med Card, your premium is burned in the event you do not use the facilities. Med Card is to indemnify you, not for profiteering.


Assuming you retire at 55 y/o, the only drawback is that your premium will be much much higher compare to when you buy it when you are 25 y/o.


Do not confuse Med card with Critical Illness with PA. They are different tools for different purpose, just like a screwdriver is good for screwing screws, hammer is good for hammering nails and a cutter is good for cutting stuff. Although you will find them all classified as handyman's tool.

To have all round protection, you need all, just like if you are a handyman doing repairing job you need all the necessary tools.

As a general rule of thumb, 10x annual salary for med card, 3-5 xannual salary for CI & PA.

Disclosure: I am not an insurance agent, but I am a user of insurance.


That or hire a Financial Planner like I did and you can get quotes from so many different company whereas an agent are limited to two Life Insurance company.

Xuzen

Well, to be more accurate, is one life insurance company. So it is important for an agent to do research and provide best service to client rather than just selling.

Hi,

The way I look at this is , either you buy the extra medical coverage NOW or after 55, you got to pay the same kind of rate when you reach 55. It doesn't mean that the premium you pay now will stay when you reach 55, isnt the MC premium usually tier rated? yes ? no? So, this isn't really a drawback imo..

We should be looking at how much the company's insurance can cover us... If the company's medical policy covers you up to 500K, then fine & good enuf.. But if company is buying those say board room 100, annum 30K limit, lifetime 100K, x K(say less than 10-15K) only for kidney dialysis or cancer treatment.. .. -- Wouldn't you get worried and quickly go look for another medical policy to cover this up?? The drawback of not getting the EXTRA medical coverage now is chances of you folking out the outstanding unclaimable from your company medical policy is there to stay till you get another coverage... I hope I write with some sense here, else please comment.

About 10x annual salary... say now if i'm earning 100K pa, do I need a 1Mil medical policy??.. I don't quite get how this logic is derived. Earning more doesn't mean my medical bill will sore by 10X does it? But it looks like more applicable to CI - CI should be 10x annual salary , since ppl could have been living like a king when they are earning 100K a year, so one probably need that 1Mil for the family to continue with that sort of living standard.. That's my logic... could be totally wrong anyway.

rgrds

This post has been edited by numbertwo: May 30 2009, 05:20 PM

I think there is no limit for medical coverage provided by my company only there is a limited coverage as follows:

1)Room rate at RM120 per night.However, i can increase it every year up to RM300 per night if i want.This will deductible from my salary.
2)Can't claim for complicated dental treatment such as bridge, and dental surgery.

Otherwise,is ok.we have our one panel clinic and hospital to choose such as Ampang Puteri,Tawakal,Gleaneagles and etc.

I has been hospitalized before for accident and all the treatment has been covered by my company.So,should i buy medical insurance now or buy it after retirement.Even the premium is higher, long term i think i will still save compare start paying now .

all medical policy has limited coverage,, the way you describe, i suspect that you company is covering your medical by ways of making payment to you directly and no policy is involved.. If not, do you know which insurance package is that??

If company is covering your full medical, why trouble yourself lol..just live and be happy, and making sure that you dono't leave this co..

You are absolutely right there. What is more important is the external medical card shud have outpatient cancer and kidney dialysis benefit to be as-charged basis coz company cards is like what you;ve mentioned above.

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Added on May 31, 2009, 1:29 amYes, you maybe right that u can save abit compared to buying now. But the point is, can you guarantee your health @ 55 is the same as you are now?

THink this over.

This post has been edited by chew_ronnie: May 31 2009, 01:29 AM

Hello, is GE going to increase for their new policy premium charge start 1/6/09?

You should ask yourself, why you want to buy insurance. It is for PROTECTION. If you think your company already given you that protection, you will not post here.
Try ask yourself:
- Will your company pay for all your bill when it is large amount.
- Will your company still hire you if you need to claim medical expenses repeatedly. (e.g. kidney dialysis, cancer treatment...).

If the above is Yes, then you can say that you have the protection before you retire. And you have to bear the risk not to get any illness that will affect you to get insurance after you retire.