BANDAR SERI BEGAWAN
A PERSON’S life savings can be wiped out due to critical illness. It cannot be more emphasised: Health insurance is very important in this day and age.
“If you are ill, does not mean you are dead and may not die for the next 20 to 30 years; but you need to manage and treat your illness,” said personal finance expert Haris Salpitikorala, managing director of insurance broker Insbro Associates.
“Cancers, tumours, strokes … are such serious illnesses. You can live long but you need treatments and when you need treatment you need to be comfortable as you are physically weak. That needs money,” he said. How much premium is needed? “Hard to say cause it depends on the illness and also how long the illness will last and how long you live with that problem,”.
He said that the medication, managing the illness, loss of income, an assistant to take care of your needs – all these cost money. “If you do not have health insurance, who will take care of the above? Even if there are people around you; do they have enough cash with them to spend on you?” he said. Basically, he said that there are three types of health insurance to look at: Hospital and Surgical, Hospital Income and lastly, Critical Illness.
Hospital and Surgical is good reimbursement system, he said. It works like car insurance, he added. If you are sick and has to be operated on, the insurance company pays the cost (reimbursing the cost) upon submission of the bills. There is a maximum amount depending on the scheme you buy.
The Hospital Income scheme does not allow for a reimbursement, he said. This is a daily benefit schme but confined to in-hospital treatment. “There is no payment for out patient treatments. Client can choose the daily benefits, may be $100 or $200 or any amount but the companies will look into your monthly income and also the basic insurance policy you are holding.”
He added, “It comes as a rider to a basic policy. It cannot be purchased separately. In some companies, those who have no monthly income are not allowed to (claim) these benefits.”
The last scheme, Critical Illness, covers major critical illnesses, he said. The numbers of illnesses that can be covered are different according to each company “but more or less, more than 23 are covered”. He cautioned, “It is very important to look into the wording of these sicknesses and how they cover the individuals to make sure there is no technical jargon to limit the claim.”
He said, “I have read some of the brochures and found them to be very technically worded so the best is to sit down and understand and ask questions to find out the limitation.”
He said that there are age limitations, pre-existing conditions, various kind of cancers (not covered), heart problems need to be clarified (whether it is a first attack or chest pain) and also confirmation from a doctor.
“Is the claim paid upon diagnosis or after treatment? Different approach by different companies; but my view is it has to be for treatment so it must be upon diagnosis … It is not a reimbursement but a lump sum payment, so why wait till the operation is over?,” he said. Furthermore, he said that you need money for treatment; not after treatment.
“Some companies even pay for further treatments. So it is best to find out all the details before you put your signature on the dotted lines,” he said.
A spokesperson from Great Eastern Life Insurance said that there are several stand alone health insurance that may help to offer a better protection plan for the sake of a person’s medical protection. He cited the company’s Premier Health Plan (PHP), Critical Illness Coverage and Great Lady Female Health Coverage.
“PHP provides you and your family with a comprehensive (coverage) that reimburses eligible hospitalisation expenses, whether they are incurred in a government or private hospital,” he said. He added that PHP comes in five plan types specially designed to meet the healthcare needs and budget.
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