Retirement Planning in Malaysia – Prepare For Real Relax Life

RETIREMENT PLANNING IN MALAYSIA

How you save in your youth will determine how you will live during your golden years. Retirement Savings is something that most people find to be a bit of a challenge. Retirement may seem to be far off in the future especially if you are still in your twenties, but it is necessary to start planning now to make sure that you will have enough to support yourself when you retire.

The high cost of living and increasing inflation has made it essential for everyone to have a retirement plan.

You will be able to enjoy your retirement if you plan well for it

What is Retirement Planning?

Retirement planning simply means allocating funds to use when you retire. It means making plans to live comfortably when you can no longer work to support yourself due to old age. There is also the other non-financial aspect to planning for retirement which involves planning how to spend it, when to retire, where to live, etc.

The best time to start planning for your retirement is the moment you start getting a stable income because the earlier you start, the more funds you will have accumulated by the time you retire at 55years. Some of the most basic needs that you will need to consider when planning your retirement will include a home, money for your everyday expenses, medical bills, and emergencies.

How to Effectively Plan For Retirement

  • Setting your retirement goals– How will you spend your retirement? List down what you want to do when you retire from the most important to the least important. Make sure that your list rules out unnecessary expenses and try to be as specific as possible. When you know and understand your goals, you will be able to determine how much you should save in order to achieve them.
  • Identifying sources of income– that you can completely rely on when you retire. This includes your savings, investments, EPF or Pension, properties or businesses etc. Make a list of all of them and add them up to find out what they will total up to each month.
  • Estimating your expenses– This includes your day to day expenses, loan repayment, rent/mortgage payment etc. Cut the unnecessary expenses so that you can start saving more.
  • Managing your assets– This will require a lot of discipline on your part. You have to make sure that your resources will last as long as you need it and you will not run out of cash in the middle of your retirement.
  • Prepare for the unexpected– Nobody likes to think of anything bad happening to them, but it is always good to be prepared. You would not want to be caught off guard during your retirement. Take your time to think of how you will pay or respond to any issue that may arise- whether minor or major. It doesn’t hurt to have some money set aside for emergencies.

Retirement in Malaysia

Retirement age in Malaysia is currently set at 55 years for employees in both the public and the private sector. A government pension plan is available for employees in the public sector. With this pension plan, retired employees receive a monthly pension which is normally half of their salary. The employees in this sector can also opt to have an Employee Provident Fund retirement plan.

For employees in the private sector, the government policy requires them to set aside a portion of their salary into the Employee Provident Fund (EPF) to make sure that they have enough savings for retirement. This is usually 23% of their monthly income which is credited into their EPF accounts. From this, 12% is contributed by the employer, and 11% by the employee.  The contribution is then placed into two separate accounts- account 1 and 2.

Account 1:- 70% of the monthly contribution which is meant for retirement financing is allocated into this account. The funds can only be withdrawn when the contributor reaches the retirement age of 55years, becomes incapacitated, relocates to another country or dies.

Account 2:- holds the remaining 30% of the monthly contribution. The funds in this account can be used to cover medical expenses, housing loans, financing education etc.  The member should at least be 50 years old to be eligible to withdraw from this account.

Most people in Malaysia solely rely on EPF to plan for their retirement and feel that the money is enough to cater for all their needs when they retire. However, a recent report showed that a majority of households run out of funds after a few years in retirement.

Private Retirement Scheme

This was introduced in 2014 as a supplement of Employee Provident Fund (EPF) when it was discovered that most Malaysian only depend on EPF for their retirement savings which is usually not enough. The PRS is a defined contribution scheme where individuals can accumulate savings retirements.

Who are the PRS Players?

Administrator: – Private Pension Administrator is a body approved by the SC to perform the role of the administration, customer service, and record keeping for the members and contributors of the scheme.

Trustees: – is an independent third party that is responsible for safeguarding the assets of PRS for the contributor.

Providers: – are approved by the Security Commission (SC) to provide the PRS services. There are currently 8 PRS providers in Malaysia who are mandated to manage and provide Private Retirement Scheme.

Distributor: – responsible for selling the PRS funds. They include sales agents, bank branches etc

Contributors: – are individuals that contribute to the PRS.

Types of Private Retirement Schemes Available

Each of the eight PRS offers and manages its own Private Retirement Scheme which is comprised of several funds. In general, a provider will offer at least three Core funds. These Core Funds should have the following features according to the guidelines set up by SC:

Conservative Funds Moderate Funds Growth Funds
Default Age Group Above 50 Years 40 to 50 years old Below 40 years
At least 80% in debentures/fixed

Income securities and

of which 20% should

be in money market

instruments and a

maximum of 20% in

Equities.

Foreign investment not allowed.

Up to 60% investment in equities

Foreign investment allowed.

Up to 70% investment in equities.

Foreign investment also allowed.

  

 

PRS member is given an option to contribute to funds to just one PRS provider or they can contribute to different funds offered by different PRS providers. This being voluntary in nature, members are free to any amount they are comfortable with whenever they want.

Benefits of Contributing to PRS

Tax Relief

Both the employer and employee are able to receive an annual tax incentive of up to 19% for employers and RM 3000 for employees. This in addition to the tax relief provided for EPF contribution adds up to a significant amount in savings.

Supplements your retirement savings

You want to make sure that you have enough money to sustain you throughout your retirement and Employee Provident Fund (EPF) is just not enough. PRS compliments your EPF and helps you increase and safeguard your retirement savings.

Offers Flexibility

Members are allowed to switch between PRS funds any time they feel like and they can also change providers once a year.

PRS Withdrawals

Just like the EPF system, PRS contributions are divided into two sub-accounts where sub-account (A) Gets 70% of the contribution and the other sub-account while (B) gets the other 30%.  The funds can be withdrawn in parts or in full under the following circumstances:

  • Upon reaching the age of retirement, this is currently 55years
  • In case the member dies
  • If the member relocates permanently to another country
  • Pre-retirement withdrawals (before reaching 55 years)

Pre-retirement withdrawals can only be done from sub-account B once a year and the first withdrawal can only be made at least a year after making the first contribution. This withdrawal, however, attracts a tax penalty of 8% of the amount withdrawn

If a member dies, the scheme will be required to release all or part of his/her savings to the executor or the named beneficiary of the member.

How to Join PRS

To become a PRS member, the first thing you need to do is choose a PRS provider among the eight authorized providers in the list below. After you have done that, select a fund that is most suitable to you and open a PRS account with your selected PRS provider and start saving.

Who are the Authorized PRS Providers?

  • Affin Hwang Asset Management Berhad
  • AIA Pension and Asset Management Sdn. Bhd.
  • AmFunds Management Berhad
  • CIMB-Principal Asset Management Berhad
  • Kenanga Investors Berhad
  • Manulife Asset Management Services Berhad
  • Public Mutual Berhad
  • RHB Asset Management Sdn. Bhd.

Conclusion  

If you have not yet planned for your retirement, then you should start doing so now. Just start thinking about how you want your retirement to look like, and make a plan to make it a reality.

Having as many avenues as possible to save for your retirement will ensure that you will have a comfortable retirement and you will not worry about your money running out a few years after you retire.

 

100 Questions & 100 Answers of Life Insurance in Malaysia

Life is mostly uncertain and unpredictable. One time you can be happy enjoying life with your loved ones and suddenly everything changes. Nobody likes to think about anything bad happening to them or their loved ones but it is always good to be prepared.

Life insurance is vital to ensure that you and your family are protected in case of any fatality or unfortunate event.

However, a big number of Malaysians don’t include life insurance cover in their financial planning. In fact, a 2012/2013 study conducted by the Life Insurance Association of Malaysia (LIAM) established that only 56% of Malaysians have a life Insurance cover.

 Life insurance protects you and your family from any unavoidable and unforeseen life events.

How does Life Insurance Work In Malaysia?

A life insurance cover is a contract between you as a policyholder and your insurance company whereby you will be required to pay a set amount of money known as premiums at regular interval i.e. monthly, quarterly, bi-annually or annually or in a lump sum to your insurer. In exchange, if you suffer from any disability, serious illness, or death, your insurer will pay a lump sum amount to you (in case of illness or disability) or to your beneficiaries/nominees (in case of death).

What is covered by Life Insurance?

Death

This is one of the main motives for getting a life insurance policy. If you have people who depended on you financially such as spouse and children, you will want to make sure that they do not suffer if anything bad happens to you and that they can still live comfortably. A life insurance policy will cover death that is caused by old age, accident, illness, or even suicides. However, there is some exclusion to the deaths as a result of suicides that are not covered.

Permanent Disability

If the policyholder becomes permanently disabled and is unable to work and provide for the family, the life insurance policy kicks in. A Doctor will, however, be required to confirm that the insured person is completely unable to work or perform any tasks to earn an income so as to approve the claim.

What is not covered by Life Insurance?

Suicide

If the policyholder commits suicide within a year of buying a life cover, the insurance company will not pay his/her beneficiaries. This is due to the clause found in most insurance contracts that clearly state that there will be no payout if the policyholder commits suicide within a year of taking the contract.

Other than that, there are other deaths and permanent disabilities that are not covered by many life insurance providers. These may include:

  • Death or disability caused by involvement in high-risk activities such as hazardous sports e.g. bungee jumping, deep-sea diving, motorsport racing etc
  • Deaths or disability as a result of war or terrorism

We suggest that you talk to your insurer about this exclusion to find out if it will cover your needs.

Who Needs a Life Insurance?

Nobody knows what tomorrow will bring. To find out if you really need a life insurance cover, think about the worst-case scenario. If something happened to you tomorrow, what would happen to your loved ones? Would they be able to cope financially? Would they afford to pay for your funeral expenses or medical bill? Would they be able to meet their day to day expenses? What about your children’s future? Would your children manage to continue with their education?

If you think that your family would suffer financially if you are not there, then you need to consider getting a life insurance cover. The death benefits help your family meet their financial needs by replacing your income.

Life Insurance ensures that the people you care for are well taken care of financially even if you are not around or have lost the ability to do so.

Life Insurance policy is most suitable for anyone with financial dependants and therefore is not necessary for retirees who no-longer have people who depend on them financially.   

In Malaysia, you are able to claim a tax relief of up to RM 6,000 annually for a life Insurance policy and also your Employee Provident Fund (EPF) contributions.

Types of Life Insurance Available In Malaysia

When choosing a Life Insurance, you can opt to choose the ones that offer a share in profits or those that don’t. Those that don’t share profits tend to be relatively cheaper.

 

  • Whole Life Insurance

Just as the name suggests, this option is designed to provide life-long coverage where the policyholder pays the premiums throughout his life. Payment of the sum is given to the beneficiaries only after the death of the policyholder or in case of total and permanent disability of the policyholder. It is the best life cover for those who want to ensure that their families are well taken care of in case of their own demise.

 

  • Endowment Life Insurance

It provides a combination of savings and protection whereby the money and the bonuses earned are paid upon the demise of the policyholder within the term of the policy. If you survive the policy period, you will receive the sum accumulated and bonuses once the policy is over. You can choose to have an endowment plan for varying periods over 10 years or up to a certain age.

This plan is best suited for savings, wealth transfer and preservation, and tax-deferred wealth accumulation.  

 

  • Investment-Linked Life Insurance

This provides investment and protection whereby your premiums will be divided for life cover and investment fund of your choice to increase your returns. You can decide on the ratio of your premium’s allocation.

This option will also provide you with savings, wealth transfer and preservation, and tax-deferred wealth accumulation.

 

  • Term Insurance

This is only available for a specific period e.g. 10 years and the sum is only paid upon the demise of the policyholder within that set period. If you survive the policy period, you will not receive any payment even if you had paid all your premiums.

This option provides the highest instant cover at the cheapest price.

 

  • Life Annuity Insurance

In this option, the insurance company pays you over a set period of time up to the day you die. There are two types of annuity which include the immediate or deferred annuity. Immediate annuity starts within 12 months after you have bought the annuity. It is mostly taken by those who are about to retire or those that have already retired. Deferred annuity, on the other hand, starts in more than 12 months after you buy it. People mostly buy this while they are still working so that they can receive payment when they retire.

This plan is best for retirement savings and wealth accumulation.

 

  • Mortgage Reducing Term Assurance(MRTA)

This is designed to repay an outstanding property loan in case of the untimely death, serious illness or disability of the borrower. In the event of such eventualities, the insurance company pays the outstanding loan amount to the financial institution which then releases the property owner to the owner or his/her beneficiaries.

 

  • Supplementary Rider

This is a supplementary attached to a basic plan such as Whole life and Endowment. Most common riders include critical illness, medical, and personal accident.

 

Why Is Life Insurance Important?

  • To financially support your family – Leaving your family behind without protection can be quite devastating for them especially if you were the breadwinner. That is why it is important to have an affordable life cover that ensures that your family will continue being taken care of even when you are not there.
  • To pay debts- In case of your demise, all your debts including property and personal debts are automatically transferred to your family if you are not covered. A life insurance policy will help your family to pay off the debts which will save them from creditors.
  • Funeral Expenses- Funerals can be quite expensive and may cause a strain to your already grieving family. A life cover takes care of all your burial expenses to allow your family to mourn in peace.
  • Saving plan- Most insurance products have riders that include saving features which allow you to claim your cash value after your policy matures.
  • Reduce income tax- Buying insurance provides you with tax relief of up to RM 6000 each year.
  • Fund your children’s education- You can use your life insurance as an alternative to pay for your children’s education when you are not there. You can also opt to surrender your policy with an endowment plan.
  • Secures your assets and savings- When you have a life insurance your family will not be forced to liquidate your assets or use up your savings in order to pay debts. Instead, they will enjoy more benefits that will have been acquired from the cover.

Factors to Consider When Choosing a Life Insurance Cover

Insurance is for life so you don’t want to make mistakes that might eventually cost you or your family. When choosing the best life cover, do your research and consider all the important aspects before you buy. Here are a number of aspects that you should consider before buying a life insurance plan that best suits you.

  1. Financial Goals

Determining your financial goals will help you decide on the best life insurance to buy. Although the most common reason for buying life insurance is to continue financing your family after your demise, there are still other ways that a life insurance cover can help you. You can take a life insurance plan that gives you a lump sum amount on maturity when your retirement or you can even save towards financing your child’s overseas studies. Whatever the goal is, it will help you towards picking the best-suited policy plan.  

  1. Cost of Premium

You should be able to comfortably pay your premium. Paying high premiums will strain you and will eventually lead to a lapsed policy. Financial planners recommend that your premium should not be more than 6% of your income. This simply means that if your income is RM 6000, your insurance premiums should not exceed RM 360.

When choosing a policy do your comparison and make sure that you will be able to afford it.

  1. Value of Policy

The next factor to consider is the amount of coverage you need. There are some online calculators to help you determine how much your dependents need. However, the best way to determine just how much coverage you need is with the help of an agent who will assess your needs based on your situation and financial goals.

Choosing the right insurance plan is greatly influenced by you and your family’s current and future financial needs. Other factors that determine the type of insurance plan that you should have include marital status, married with children, age, and income.

It is not enough to just get a life insurance policy; you should get a policy that will completely cover your whole family in case of any unfortunate event.

Importance of Disclosure

When applying for a life insurance policy, you should make sure that you completely fill the form truthfully or your policy will be void. If your agent is the one that filled the form for you, make sure that you read and understand all the requirements before signing it.

 

What to do if you can no longer afford to pay your premiums?

If you encounter some financial problem and you are not able to pay your premiums, the policy contract offers a “grace period” which gives you more time after the due date to pay the premium. This grace period is normally 15 days for a monthly mode of payment and 30 days for other modes (semi-annually and annually).

If the grace period is over and you still cannot afford the premium, you have an option to keep the policy active by using a “non-forfeiture loan” which simply utilizes the cash value that your policy had earned to pay for the premiums. Your policy will lapse once the cash value is finished.

On the other hand, you can opt to change your policy to a “paid up” policy whereby the policy and the sum assured is active up to the last time you paid your premium. You will not be required to pay any more premiums but your policy’s validity will only be up to the amount you had paid which means that the sum assured will reduce.

If your policy lapses, you may revive it within a set period under specified conditions including declaring your health status at the time.

We recommend that you speak to your insurance company for more details on the options available to you if you are having problems paying your premiums.

 

What happens if you cancel Your Life Insurance Policy?

Purchasing a life insurance cover is a long-term commitment. If for one reason or the other you decide to cancel your policy, you will not get the full amount that you had paid in premiums up to that date. This is because the surrender value (value of your policy when you cancel it) is less than what you had paid.

It is also not advisable to replace your current policy with a new one because there is a likelihood that your new policy may have a higher premium and will also incur some additional costs. Therefore, before terminating, replacing, or borrowing on a policy, discuss with your insurance company to find out more about what you will be forfeiting.  

You can however still get a refund of your premium if you cancel your policy within the 15 days ‘free look’ period. You can do this by returning your policy to your insurance provider after receiving the policy document.  

What you need to keep in Mind

  • Your life insurance policy may lapse if the premiums are not paid on time, therefore, it is important to note when your premiums are due.
  • Always insist and keep a receipt as proof of payment which you may need when there is an investigation if your agent fails to forward your payment to your insurance company.
  • Make sure that your age is correctly stated in the insurance proposal form because it may affect the amount that your insurance company gives to your nominees in case of your demise.
  • Keep your insurance form in a safe and secure place and write the basic information of the policy such as the type of policy, policy number, and your nominees’ names in another place.
  • Ask your insurance company for clarification of anything that you don’t understand in the policy document.  

 

Conclusion

It is important to have a life insurance cover especially if you are the breadwinner in your family. Make sure that you tell your nominees about your life insurance policy and where you keep the documents. Also, keep them updated on any changes you make on the documents. Having a secondary nominee is also important in case your main nominee passes away before you.  

Medical and Health Care In Malaysia – The Benefit of Having One

MEDICAL AND HEALTH CARE IN MALAYSIA

Malaysia operates a two-tier system of healthcare. This consists of a government sponsored universal healthcare system and a co-existing private healthcare system. The government has put into place funds to ensure that every Malaysian resident is able to access good and affordable health care in public hospitals within the country.

While the cost of healthcare in public hospitals is the cheaper and more affordable option, most Malaysians still seek treatment from private hospitals regardless of the cost. This is because unlike the public ones, the private hospitals are less crowded, have more doctors, and offer faster services to their patients.

Health and medical care insurance policy helps cover the cost of medical treatment

 

Medical and Health Insurance (MHI)

A medical and health insurance (MHI) policy help is designed to help cover the cost of treatment in private hospitals. This includes the costs of hospitalization, surgical, and healthcare services if you get diagnosed with an illness that is covered by the policy, or in case you get into an accident.

This coverage is offered by licensed insurance companies in which you have to pay premiums.

Types of Health Care Coverage

There four major types of medical and health insurance being offered in Malaysia. These include hospitalization and surgical insurance, 36 critical illness insurance, and hospitalization benefits.

 

  • Hospitalization and Surgical Insurance

This is the basic medical insurance. It offers medical coverage to hospital and surgical expenses incurred during treatment of a specified illness, or accident. It is suitable to everyone who wants a medical cover.

 

  • Critical illness Cover

A lumpsum is provided by the insurance company upon diagnosis of any of the 36 critical illnesses (also known as dread diseases). Some of these illnesses include cancer, heart attack, stroke, blindness, Alzheimer, etc.

 

  • Long-Term Care Insurance

This offers coverage for long-term care including home care, assisted living, nursing homes, adult day care, and Alzheimer facilities. It is suitable for people who live alone and don’t have anyone to take care of them when they get ill or old.

 

  • Hospitalization Benefits

This provides an agreed amount of money on a daily, weekly, or monthly basis to you when you get hospitalized. This will ensure that your family is able to cope financially even when you are still in the hospital recovering. It is suitable to get this cover if you have young children, a spouse without an income, aged parents or young siblings that rely on you financially.

It is usually recommended to get all the four type to ensure that you are fully covered. However, if you are at a low-risk age and leading a healthy lifestyle, a basic medical card which offers hospitalization and surgical cover will probably be enough. Depending on your policy, some medical cards also provide insurance on death, and total and permanent disablement.

If you don’t have any dependants, it is not necessary to have a hospitalization benefits cover.

 

Exclusions

A Medical and Health Insurance cover contains a number of exclusions which are not covered by insurance companies. It is important to know what these exclusions are before committing yourself to buy a MHI cover. Each insurance company has its own list of exclusions which you should find out through your agent, or insurance provider. Some of the most common exclusions are:

 

  • Pre-Existing Conditions

This simply means that if you suffered an illness in the past before you applied for a MHI policy, the insurance company will exclude that illness from the policy cover.

 

  • Qualifying/ Waiting Period

You are not able to make a claim for any medical or physical condition which may arise within the first 30 days of the policy. However, the insurance company will cover accidental injuries.

 

Factors that Determine which Type of Insurance to Buy

Factors such as age, income, marital status, and children will play a big role to determine which type of MHI will be the best suit for you. However, there are still other important factors that you need to consider before buying a medical and health insurance cover. Such factors include premium, coverage, and panel hospitals and reimbursement.

The Premium

While it is important to buy a MHI policy that you can afford, you should also make sure that the policy offers the coverage you need.  You need to list down the most important things that you need to have covered and then find a policy that will be affordable to you.

The Coverage

When you get an idea of what type of MHI you need that is within your budget, you can then start shopping for a health insurance policy.

Some of the essential things that you should look out for are: the room and board limit, annual limit, as well as lifestyle limit.

When considering the annual and lifetime limit, make sure that you are prepared for the future. This is because of the continuous rising of medical inflation cost; the amount that may seem adequate today may not be enough in a few years.

The other Coverage to consider is the out-patient treatment plan which will cover all the other treatments that you will need after hospitalization. Without this coverage, you may find yourself spending a significant amount of money from your own pocket.

Dr.Nirmala Bhoo-Pathy, a cancer epidemologist in UM  estimated the cost of breast cancer treatment to rise up to RM 65,000 per year which means that people earning below RM 4,700 will have a rough time paying for it.

ASEAN Costs in Oncology study by the Sydney based George Institute for Global Health found that a 45% of cancer patients in Malaysia suffer from financial hardship within a year after being diagnosed.

Early detection of cancer can help in treatment which can save and prolong the lives of patients.

Panel of Hospitals and Reimbursements

It is not sufficient to just have a cover with high claimable limit if you are not able to easily access the hospitals under your insurer. Look for an insurer that provides cashless health facilities within your region so that you are can access treatment without paying for them with your own money and going through the hustle of filing for reimbursement.

Other Things to Look Out For

It is important to read and understand the terms and conditions of any legal document before signing it, this include the medical and health insurance policy. If there is anything that you don’t understand, ask your agent, or insurance provider for clarifications and details.

Some of the important things that you may find in the policy document and need to understand include:

  • Co-insurance which refers to the percentage of the medical expenses which you will be required to pay. This means that if the medical cost is RM 28,830, and your insurer pays 90% of it (RM 25,497), you will be required to pay the remaining 10 %( RM 2,883).
  • Deductible– is based on the set amount that must be paid for all the covered treatment before the insurance company will begin to pay the subsequent expenses. This means that if the fixed amount deductible is RM 2000, and the annual treatment cost is RM5000, your insurer will pay RM 3000 and you will have paid the RM 2000.
  • Guaranteed renewal– it is important to have a policy that provides guaranteed renewal especially if you are over 50 years old. This ensures that you are protected throughout even despite recent diagnosis of illness.

Types of Medical and Health Insurance Plans

There are several MHI available to suit your situation. These include

Individual health Insurance Plan

This only protects the policyholder. There are two types of individual health coverage: emergency health insurance and comprehensive health.

The individual emergency health provides coverage for accidents and unexpected critical illnesses. On the other hand, the comprehensive cover offers more protection to the insured and also has a large network of medical facilities partners.  

Family health Insurance Plan

As the name suggests, this plan is designed to ensure that each member of your family protected in case of an injury of illness.  There are guidelines that are set by insurance providers that outlines who is considered as a family member. For example, some plans may cover both parents and all the children of the dependant, whilst other plans may require for members to be added individually so as to extend the coverage which will also mean adjusting the premium accordingly.

Group Health Insurance Plan

This is mostly taken by employers who seek to create a more enticing benefit package to attract and maintain workers. Group health Insurance plans ensures that companies and business are able to provide medical cover for their employees.

Other groups that use this plan are sports team, non-government organization, and schools.

Travelers Insurance Plan

This is meant for those who wish to visit Malaysia either for business, tourism, volunteering, etc and do not have an international insurance cover. A traveler’s insurance plan is design to protect you for the intended time that you will be staying in Malaysia.

For those that have relocated and have stayed in the country for more than a year or expatriates who have permanent residence in the country, an individual health insurance plan is more ideal.

 

How to Make a Claim

In order to avoid unnecessary delays with your claim, insurance companies recommend the following key actions:

  • Before receiving any treatment that is non-emergency, you should call the customer care helpline of your insurer or your agent to find out if the treatments recommended by your doctor are covered in your policy, and whether that particular hospital is part of your insurer’s panel of hospitals.
  • Always request your doctor and specialist to fill and sign your claim form.
  • Remember that different insurance companies and different policy types have different ways of making a claim.
  • Make sure that you submit a written notice to your insurance provider as soon as possible or within 30 days of the treatment period if you get diagnosed with a disability that might incur claimable expenses.
  • Also make sure that you send all the necessary claim documents and supporting documents such as original bills and receipts, physician costs and summary of treatment, and if necessary, referral letter.

Note that payments can either be denied or delayed if you don’t submit all the required and supported documents.

 

Conclusion

Having a medical and health insurance is very important not only for you but for your family as well. The key to getting a good MHI cover is not about the amount of premium you are paying but the kind of coverage you are getting. It is therefore important to do some research, compare, and choose a cover that gives you more and wider coverage. If you want to make a claim, make sure that you follow guidelines provided by your insurer for smooth and faster processing.