The drawbacks of purchasing insurance
While you may be working very hard to meet your financial goals, an unexpected health issue could have a really significant impact on your journey. If you are the family’s sole breadwinner, the financial strain could be enormous especially if someone in your family has a medical emergency.
Because of the rising cost of private medical care in the country, hospitalisation can burn a huge hole in your pocket and have a significant impact on your financial health. Purchasing medical insurance is a wise way to protect your finances. When you buy comprehensive medical insurance policy Malaysia, you enter into a contract with the insurer in which the insurer agrees to pay for your medical expenses.
The premium rises with age.
One of the most significant disadvantages is the relationship between health insurance premiums and age. Your age is an important factor in determining the premium for your policy. When you buy a health insurance policy when you are 20 years old versus when you are 55 years old, the premium amount can vary significantly.
In fact, once you reach the age of 60, it can be difficult to find a healthcare plan. Because the likelihood of developing a health condition increases significantly with age, insurers compensate for the higher risk by charging an exorbitant premium. This is why it is recommended that you purchase health insurance while you are still young.
Waiting Period for Pre-Existing Health Issues
Most insurance plans also have a pre-existing disease waiting period of up to 2-3 years. If you already have a health condition, such as high blood pressure, diabetes, thyroid disease, or another, at the time you purchase a policy, any medical costs resulting from these conditions will not be covered until the waiting time is over.
This is one of the most major disadvantages of healthcare insurance because it requires you to bear healthcare expenses even if you have health insurance. This is yet another justification why you should buy health insurance while you are young and fit. However, there are now private insurance plans with shorter waiting periods.
Clause of Co-Payment
Many insurance policies include a co-pay or standard deduction clause to prevent fraudulent claim filing. If your policy includes a co-pay provision, you will be required to disclose your medical costs to your insurance company. The co-pay is usually expressed as a percentage of the total health bill.
For example, if your policy has a 20% co-pay clause, you will be obligated to pay 20% of your hospital bill, and your insurance company will pay the rest. Such clauses are now commonly found in low-cost health plans that entice people with low premiums. Before purchasing a policy, always read the policy document thoroughly to ensure that you understand the inclusions, exclusions, and other implied terms.
While there are some drawbacks, it is clear why medical coverage is still required for everyone, regardless of age. In fact, the younger you are when you buy health insurance, the more advantageous it is.