Most people will assume that their hospitalization expenses are taken care of after signing the dots on their proposal form. Policy documents are put away without first reading the terms and conditions in it. When comes the time to make claim, some are disappointed, leading to finger pointing at insurance agents......
The following reminder is an extract from www.insuranceinfo.com.my which I find important for consumers shopping for a medical hospitalization insurance policy.
1)Buy according to needs and budget
Lower premiums will have lower claim limits, and the amount covered is commensurate with the premiums you pay. Understand what your needs are and how much you can afford to put aside regularly. It also pays to shop around and look at policies from various companies, as these will differ in coverage, benefits and costs.
2)Full disclosure of information
Do not hide anything about your medical history. Some will even ask about immediate family members,. You should never lie, as it can and will result iin claims not being paid.
3)Fully understand your policy
Ask your agent for more information about the policy you want to buy, and do not be shy about it. Understand what the terms and conditions are, as well as the scope of cover provided. You should at least be aware:
i.What is covered (limits of benefits provided)
ii.What is not covered (for example: investigative admission, prosthetic limbs)
iii.Period of cover (if policy renewal is guaranteed after a claim)
iv.Waiting period (the amount of time before you can make the first claim)
v.Annual and lifetime limits
vi.Co-insurance (cost-sharing between insured and insurer)
vii.The amount of premiums to pay (static or increases with age)
4)Be aware of exclusions
There will be a list of conditions and illnesses where claims cannot be made.
5)15 days free-look period
Once you receive the policy documentation, read through it thoroughly and see if you are agreeable to it. If you are not, you can return the policy within 15 days and receive a full refund of premiums (certain costs may be deducted)
6)Claims procedure
Always check with the insurance agent or company before undergoing treatment. They can advise which are their panel clinics, and what you are entitled to. In the case of emergencies nd treatment is sought at a non-panel facility, the insured usually has to pay for it firs, and will be re-imbursed later.
7)Buy additional riders
If required, you can buy extra coverage on your policy (for example, overseas treatment of waiver of the annual limit).
8)Review policy annually
The cost of medical care increases every year. It is prudent to regularly check if the existing coverage meets current costs.
Showing posts with label Life Insurance. Show all posts
Showing posts with label Life Insurance. Show all posts
Tuesday, November 2, 2010
Wednesday, August 25, 2010
What is life insurance all about
Once I read a story which explained very well of how insurance works.
Long ago, there was a village with 100 households. They were all padi farmers. Not far from the village lived a gang of robbers that came down from the mountain on the last day of each year. The robbers would target at the village and shot an arrow. Whichever house nearest to the fallen arrow would be required to give the robbers 100 sacks of rice. 100 sacks was in fact all the padi harvested in a year, living the family nothing to live by for the following year!
One day, a wise man from the nearby village heard about the ill-fated village and decided to pay the village a visit. He shared with them an idea of how every one can help each other to reduce the loss to the minimal. The brilliant idea was for each household to contribute a sack of rice at the end of the year. 100 household would mean 100 sacks of rice. At year end, no one should be in fear anymore of losing his fortune for a year!
This concept is similar to life insurance. Every policyholder does contribution from his premium to form an insurance pool. Should any of the policyholder pass on, the money from the pool is used for compensation.
Technical definition would be:
Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company.
A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.
Long ago, there was a village with 100 households. They were all padi farmers. Not far from the village lived a gang of robbers that came down from the mountain on the last day of each year. The robbers would target at the village and shot an arrow. Whichever house nearest to the fallen arrow would be required to give the robbers 100 sacks of rice. 100 sacks was in fact all the padi harvested in a year, living the family nothing to live by for the following year!
One day, a wise man from the nearby village heard about the ill-fated village and decided to pay the village a visit. He shared with them an idea of how every one can help each other to reduce the loss to the minimal. The brilliant idea was for each household to contribute a sack of rice at the end of the year. 100 household would mean 100 sacks of rice. At year end, no one should be in fear anymore of losing his fortune for a year!
This concept is similar to life insurance. Every policyholder does contribution from his premium to form an insurance pool. Should any of the policyholder pass on, the money from the pool is used for compensation.
Technical definition would be:
Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company.
A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.
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