Make the Right choices

Making the right choices in life could save you money and heartache. Understanding whether you have made the right choice in the purchase of medical insurance is admittedly not an easy feat as the subject can be so technical that it is hard to grasp, even if the right questions are asked.

Malaysia Medical Insurance Organization (MMI) has recommended that consumers consider the following areas in relation to decision making and choices in purchasing medical and health insurance products and services.

(1) Select a Good Insurer (Insurance Company)

Three primary criteria should be considered when choosing an insurance company:

1. Financial strength;
2. Fairness and promptness in processing claims;
3. Ability and willingness to provide service before and after a loss.

An insurance policy is a promise. Like all promises, it is worth no more than the word and the financial strength of the person or company making it. Therefore, the first priority in choosing an insurance company is to be sure the company is strong financially. You may be able to gauge the standing of a specific company from information gathered from insurance agents or advice of your insurance broker or experiences of other policyholders i.e. satisfied customers. An insurance company should also be willing to listen to your insurance requirements and if necessary "tailor" insurance covers to meet your needs.

The consumer should determine the company's reputation for fairness and promptness in settling claims and its reputation for providing service.

(2) Selecting A Good Medical Insurance Advisors

The first criteria when selecting a good insurance advisors is that he or she must be registered with LIAM or PIAM before dealing or engaging in any medical insurance business.

Besides being easily accessible, other pre-requisites of a good insurance advisors include possessing :

• a good knowledge of the products and services offered by his principal ie the
  insurance company that he represents.
• strong ethics and the ability to put a client's interest first;
• good communication skills so that the insured understands the needs the insurance fulfills, and the rights and duties created by the contract. Evidence of an advisor's knowledge is found in the ability to answer questions clearly and if an answer is not readily available, he knows where to get the answer. Some advisors show their desire to add to their knowledge by attending seminars organised by Malaysia Medical Insurance Organization (MMI).

It is admittedly difficult for a consumer to form an opinion about an advisor's trustworthiness. Knowledge of the advisors' reputation, or referral by a satisfied customer is about the only ways available to develop this information. The same reasoning applies to the advisor's desire and ability to provide service after the sale.

When in doubt, there is no harm in contacting and making some enquiries at MMI head office.

(3) Select A Good Medical Insurance Policy

Whether the medical insurance policy is deemed good or bad, depends on the consumer understanding of his need for that particular insurance.

A "good" medical insurance policy should be one that meets the consumer's needs without providing more insurance than is required.

(4) Pay Right Price

Useful hints for consumer will enable them to pay the right price, but few absolute rates exist. The "right price" is the one providing the consumer with the greatest amount of insurance after giving consideration to the other four criteria just described.

That is, the right price for medical insurance is not necessarily the lowest price. The lowest price may come from a company whose financial strength is questionable. It may come from an Insurer whose advisors are not trained adequately or from a company whose policies do not offer coverage as valuable as that offered by other companies. For these and other reasons, the consumers should first consider all the other criteria mentioned and then decide on the right price for insurance protection and, indirectly, peace of mind.

Please send your questions on medical insurance to MMI careline +603-92863323 or email to mmicare@medicalinsurance.com.my.

Medical Insurance and Life Protection Insurance Planning and Risk Management Advisory

Our MMI senior advisors will help you figure out how much additional medical and life insurance coverage you need, if any. If you discover you need additional medical and life insurance coverage and you are still relatively young, term life insurance is generally the least expensive way to go because it provides "pure coverage"; you build no cash value in the policy. (Note that the cost of term insurance goes up as you grow older.) Term insurance provides protection for a specific number of years, with the death benefit paid to your beneficiaries if you die during the policy's term. When the term ends, so does your coverage, unless you renew the policy.

On the other hand, whole life policies and investment-linked life insurance provide protection over your entire life. For younger people, whole life insurance is more expensive than term. But the premiums generally are fixed, so as the years go by, it can become less expensive. Cash values and interest accumulate in these policies are tax-deferred, and you can borrow from the cash value.

Disability Protection and Personal Accident Insurance

Like life insurance planning, disability insurance planning is based on your particular needs, circumstances, and resources. In addition, you may want to include long-term care insurance in your financial plan to help preserve your assets for your family in the event you suffer a prolonged illness. Don't forget about personal accident (PA) insurance too.

Health Insurance and Medical Card

Cancer plan

There is always hope after cancer.