Your Questions Answered HereCategory: InsuranceMedical card for children
KokFung Loh asked 3 months ago
  1. For employee whom has medical card coverage from their company (say RM30k/year), is it recommended to buy a separate medical card for our children (12 years old and below)?
  2. If we were to buy medical card for our children, since it is advisable for us to review our insurance policy every 3-5 years (with all the better policy being introduced); wouldn’t it be better for us to buy term medical card for our children? Why do we want to lock down ourselves (children’s policy) where they have many years to go and potentially a much much better benefit and policy will be available in the market in the later years?
  3. Can you share which insurance company allow us to upgrade our medical insurance plan to a better plan (I am not referring to the higher R&B)?

Thanks.

2 Answers
CHING FOO LIEU Staff answered 3 months ago

Generally, getting medical card for children would be of the least of a priority. For obvious reasons which you already have stated.

Furthermore, it is rare you would maximize the amount covered by your employer under normal circumstances, for you children, if you are working in a multinational company providing decent family medical coverage.

Think you also can relate to this – most of us grew up not having personal medical card bought by our parents, and we bought our first one ourselves when we start working. And we turned out fine, yes? But time has changed, what deemed as luxury in days past has now became more of a necessity, especially if we can afford it.

Am not saying it’s not recommended, but in our opinion, after you cover yourself comprehensively in all crucial areas – and you found yourself still not maximizing the 3k tax relief, plus it’s within your affordability, then you only want to consider medical coverage for children, instead of  savings/endowment plans.

Every insurer allows upgrade of medical plans, so am not sure what you mean by this, if you are not referring to higher R&B upgrade? Can you clarify more?

KokFung Loh replied 3 months ago

What I mean by upgrade of medical plan can be described in the scenario below:
1. C bought a medical insurance from company B 5/7 years ago. The policy (eg: product name is XYZ) only covers 100k annual limit and 300k life time limit.
2. Today Company B medical insurance (product name is DEF) has a lot more better features among which 300k annual limit and no life time limit.
3. C want to upgrade his medical plans but only allow to high R&B on product XYZ, which just increase it to 150k annual and 450k lifetime limit. He is not allow to upgrade to product DEF.

In this scenario, why should we lock down ourself with a more inferior policy when there will be better plans in the future.

CHING FOO LIEU Staff answered 3 months ago

Loh
 
Your thinking is right. Which is why if anyone feel he will be healthy for long (aka – still insurable) and don’t mind the cost of higher premium when he/she buys at later age, then delay getting medical insurance until age 50 or 60, esp only when he/she is planning to stop working for a company. 
 
However, most people buy now instead of later because they cannot be certain if by the time they wanna buy in later years, they will still be insurable. 
 
We got a client in mid 30 who has the same thinking.
And just last year, he got hit by a mild stroke. He recovered w/o much complications, however, now when he wants to buy a personal medic card, most insurers rejected his application, and some impose exclusions (won’t cover for anything related to stroke or cardiovascular conditions)
If he were to have any form of medic card, even ‘inferior’ ones like you put it, then at least the old medic card will still provide some coverage for his now pre-existing conditions, because that medic ins policy was in-force long before the stroke hit.

KokFung Loh replied 3 months ago

Thanks a lot CF. Your inputs has been very useful.