It’s sad to know that over 50% of Malaysians are still without life insurance. To think that many would have to be scrambling for a living once they lose their breadwinners… is just heartbreaking.
If you’re considering life and medical insurance, you’re doing the right thing, preparing for your future and the future of your loved ones.
Before you buy life and medical insurance, make sure you check out these 5 important things.
1. Check your coverage need
Every individual across different stages of life has a different coverage need. Before you buy life or medical insurance, make sure you know the coverage you need.
For life insurance, it’s recommended that you choose a coverage amount that is 10 ten times your annual income. Say that your annual income is RM60,000, consider RM600,000 as your coverage amount. Should you pass on or permanently lose your physical ability to continue working (touch wood!), the payout will help you or your dependents survive longer while looking for other means of income.
2. Understand your insurance policy
It’s crucial for you to understand every term and condition stipulated in your insurance policy. Insurance providers may offer plans with similar features, but it’s your duty to look for the ‘extra’ or ‘special’ features so you don’t lose out on better deals.
Do your research before inking any agreement! Ask insurance providers or prospective agents anything you’re not clear about. Remember, it’s an important life decision so think long and hard before committing to any insurance you choose.
3. Know your budget
Avoid getting insurance more than your needs and budget. Review your finances and ask yourself: “How much can I afford every month to pay for my insurance coverage?”
Set aside an amount you can afford, and get an insurance plan that fits the amount. Ideally, your monthly insurance premium shouldn’t take more than 10% of your monthly take-home income.
4. Get medical insurance coverage that is not limited to certain hospitals
Some procedures or treatments require specific and advanced medical equipment available only in certain hospitals. This is why it’s important for you to get medical insurance that covers your bills regardless of the hospitals you go to. Note that some insurance plans cover medical but not hospitalization bills, so ensure that your medical insurance covers both medical and hospitalization bills.
5. Ensure no cost-sharing between you and the insurer
Having medical insurance will greatly alleviate your financial burden should you fall sick one day. But you won’t be fully relieved if your insurance policy requires you to pay a portion of your medical or hospitalization bills. So do check with your insurer whether you have to share with your insurance the cost of your medical or hospitalization bills.
Remember, the best medical insurance for you is the one that meets your needs and budget.
Before committing to any insurance, be sure to ask your preferred insurer or agent anything that you don’t understand. You can also consult insurance specialists at Bjak for free to blow away your confusion.
(Source: New Straits Times)
