In times like these, it is imperative for you to stay adequately covered. NO one needs to be reminded that illness can strike any time. In addition, NO Malaysian should be ignorant of the fact that medical costs are skyrocketing at double-digit inflation rates as we age!

It would be tragic to experience medical bankruptcy due to sudden illness. For those in their old age, such financial depression could cut short their life earlier than expected.

Did you know
Malaysia's medical inflation rates stand at about 10% to 15% annually? Seriously!

The real deal
To get a better picture of what you could be dealing with, here's a rough projection of medical costs in 10 or 20 years time:

The million dollar question:
How much insurance coverage is enough considering such inflationary pressures? It is impossible to arrive at an exact figure as the amount required is subject to unpredictable variables like type of illness, medical fees, medicine costs and more. You should therefore start early by setting apart a potion of your income for personal savings, ascertaining our contribution to the Employees Provident Fund, and obtaining a balanced mix of life and medical insurances and investments for old age care.

The situation today
Many of us recognise the importance of covering our assets in the event of premature death. However, most people overlook the financial distress that can be brought about by a sudden injury or illness.

Being unable to work due to an injury can strain one's finances, making it difficult to meet regular living expenses. Unexpected medical complaints like a heart attack, stroke, cancer or major surgery is already draining enough - emotionally and physically - without the added financial pressure of soaring medical expenses.

In view of this, a comprehensive financial plan should address the following insurance coverages:
• Death cover and TPD;
• Income protection;
• Health insurance; and
• Asset protection cover

The conclusion?
When it comes to finding a plan that suits you, many of us become confused by the wide variety of plans available out there. In Malaysia, different types of coverages are handled by either general insurance companies or life insurance companies. For example:

Take stock of both your Hospitalization and Surgical Insurance (HSI) and Critical Illness Policy. Basically, the HSI will cover hospitalization costs and outpatient treatments, whereas the Critical Illness Policy will provide a lump sum amount to be used flexibly and according to your needs.

Before purchasing insurance, remember the 3C's:
Coverage. Assess what you need to protect and determine the level of coverage you need.
Compare insurance companies and their policies.
Claims. Under what situation can you make a claim and how to make claims.

Last but not least, contact your insurance professional for guidance in selecting the right kind and amount of insurance coverage.