This post is about 6 don’ts with medical and health insurance.
And this post is especially helpful for those still looking for the right medical insurance either for themselves or their loved ones.
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[Disclaimer: I am not a certified financial planner. My sharing is purely based on my own research and personal experience. To make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a certified financial planner if necessary]
6 don’ts with medical and health insurance
Based on my own experience and after reading my own and my husband’s insurance policy, these are the 6 don’ts with medical and health insurance:
1. Don’t simply sign a medical and health policy
The first is don’t simply sign a medical and health policy.
If the insurance agent keeps bugging you to sign on the medical and health policy or an investment-linked plan, please tell him that you need more time.
And please don’t simply sign a policy just because the insurance agent keeps pestering you to do so.
The reason is as below:
- it is part of their job to follow up with you on the proposal with the hopes that you will sign a policy with them
- they have a sales target to meet
And for your part, do read through and understand the proposal before signing up for any medical and health policy.
Because you are the one who is paying the monthly premium. And most importantly, the medical and health plan is to cover your medical and health needs should you require it one day.
So, no matter how annoying is the insurance agent, please don’t simply sign a medical and health policy just because the insurance agent asked you to do so.
Instead, do a thorough consideration before making your decision.
2. Don’t simply terminate a policy
For those who already own a medical and health policy, please don’t simply terminate the policy.
Some of the reasons which might prompt you to terminate an existing policy include:
- you want to support your relatives or friend who just joined as insurance agents by signing up with them
- you found a cheaper medical and health insurance plan
- your employer provides medical coverage for your (read my sharing on why you can’t rely on your employer’s medical coverage)
This is because terminating a policy, especially an investment-linked policy might do more harm than good.
Unless you really know what you are doing, it’s not recommended to simply terminate a policy without detailed consideration.
For that, you might be interested to read my sharing on 7 considerations before switching medical insurance plans.
3. Don’t lie when signing up for a policy
When you sign up for an insurance plan, especially a medical and health policy, you need to make a health declaration as part of the process.
And some of these include:
- pre-existing illness
- existing health conditions including height and body weight
- some habits such as whether you are smoking
- medical history especially in recent years
It is important, to tell the truth about your health condition when signing up for a policy.
Because the insurance provider has the right to investigate and deny the medical claim if they found out the policyholder covering the facts.
I am sure we don’t want the insurance provider to reject the medical claim.
4. Don’t overestimate cash value
This cash value thing is related to an investment-linked plan.
If the insurance agent told you that you can have a big sum of cash value after paying the premium for some time, be very careful not to overestimate the cash value.
As a policyholder, I understand that we want to have the best for both protection and return on investment through the investment-linked plan.
But, always bear in mind that all investments come with risks.
This includes investment through the investment-linked plan. And there are possibilities that a policy’s cash value gives a negative value.
Therefore, don’t overestimate the cash value of an investment-linked plan.
On a side note, if you wish to know the differences between the investment-linked plan and a standalone medical plan, you can read my sharing on the standalone vs the investment-linked plan.
5. Don’t miss out on paying the premium
Once you have signed up for medical and health insurance, do remember to pay the premium and never miss out on paying the premium.
Especially if your plan is a standalone medical policy. Because if you missed the premium, the policy becomes void.
One solution is to set up a direct debit from your credit card when you first sign up for the insurance policy. Of course, you need to remember to update the insurer if there are any changes to your credit card.
As for the investment-linked plan, do some calculations and understand the risks before taking the premium holiday.
6. Don’t rely on the insurance agent 100%
Lastly, don’t rely on the insurance agent 100%.
Personally, I prefer to communicate with my insurance agent either through email or text chat, especially for important matters and clarification.
The reason is as below:
- I want to have a copy of what has been communicated
- so that I can always refer back to what had been shared or replied to by my insurance agent
Even if they called me instead of replying to my emails or text messages, I still insist on their reply to me in black and white. If the insurance agent is reluctant to do so, it is time to clarify directly with the insurer.
I am sure there are many good and professional insurance agents out there. But, many of them are not customer-oriented or focus on their prospect’s needs.
So, instead of relying on the insurance agent, what we can do to protect our own interests is:
- to read up and gather as much information as possible before signing up for a policy
- to ask for quotations and meet up with different insurance agents from a different provider
- when in doubt, check the details with relevant and trusted agencies
I still think the best is to have important things be in black and white instead of verbally.
For this, you might be interested to check out my sharing on the criteria of a good insurance agent.
Final thoughts
With the rising cost of medical expenses, many of us will agree if I said medical and health insurance is a need nowadays.
Even if you plan to go to the public hospital, there are still cases where the patient needs to purchase certain equipment or medicine by himself. This is where a medical and health policy can still help to cover parts of the medical bills.
I hope my sharing above on the don’ts with medical and insurance coverage is beneficial to you. If you think that the article is useful, feel free to share it with your friends and family.
Image Credits
Image by Mohamed Hassan from Pixabay
