Know your needs and choose the right plan

It may be tempting to overlook your healthcare protection needs when you are young, but this is actually the best time to consider a protection plan, since premiums become more expensive as you get older.

Before you buy a plan, consider personal factors such as the plan’s affordability and whether it meets your protection needs.

MIND YOUR BUDGET

Affordability is one of the most crucial factors in deciding which plan is right for you. If you choose a plan that is above your budget, you may not be able to continue paying for it, and your coverage will lapse.

To assess your budget, factor in all your expenses and savings needs, then calculate your available funds.

You should also note that a protection plan is different from an endowment plan. The latter offers a payoff at the end of the term but protection plans buy coverage in the event of a medical condition. So you may want to divide your available funds to pay for both types of plans.

UNDERSTAND YOUR NEEDS

To ensure that you buy a suitable plan, you should know your needs and how different features affect your policy.

For instance, factors like deductibles and co-insurance may help keep your premiums affordable but may mean that the policy does not fully cover expenses. This means you’ll need sufficient funds to pay for any costs before your insurer makes any payments.

Policy limits reduce the amount of money you can claim. For instance, your protection plan may have limits for each illness or disability covered, or age limits.

This means you may not enjoy as much coverage as you had initially thought. Consider such factors , as well as your available funds, when deciding which type of hospital you want to be admitted into.

KNOW YOUR POLICY

Before you buy a protection plan, make sure you understand the terms. Knowing exactly what you are covered for will help you buy a plan that best suit your needs, and help you choose a treatment that suits your budget.

Most private health insurance plans will not cover pre-existing medical conditions, or require higher premiums to cover such conditions. This is why it’s helpful, as in Mr Kwek’s case, to buy a protection plan when you’re young and healthy.