{"id":42897,"date":"2020-04-01T13:50:05","date_gmt":"2020-04-01T05:50:05","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=42897"},"modified":"2024-02-14T17:17:26","modified_gmt":"2024-02-14T09:17:26","slug":"review-insurance-coverage","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/review-insurance-coverage","title":{"rendered":"Is This A Good Time To Review Your Insurance Coverage?"},"content":{"rendered":"

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Reading this from home?<\/p>\n

You\u2019re not alone. Thanks to the coronavirus outbreak, many of us are now working at home and forgoing outside activities. It can be a stressful time. Not only are we stuck indoors, we have to navigate the health and economic uncertainties caused by the pandemic.<\/p>\n

But there\u2019s a silver lining: you can use this time at home to work on things that you\u2019ve always wanted to do, or reflect on things that matter, such as your finances.<\/p>\n

And during a health crisis such as this, it\u2019s never been more important to review your insurance coverage. Here\u2019s why.<\/p>\n

<\/span>1. To afford medical costs<\/span><\/h2>\n

Being in the middle of a pandemic can be scary. But if you\u2019re insured, there\u2019s peace of mind in knowing that there will be a financial safety net. All insurers under the Life Insurance Association of Malaysia (LIAM) and Malaysian Takaful Association (MTA) have confirmed<\/a> that they will provide hospitalisation and treatment coverage for COVID-19.<\/p>\n

But COVID-19 isn\u2019t the only health condition you should prepare for. The top causes of mortality<\/a> in Malaysia include ischaemic heart diseases, pneumonia and cerebrovascular diseases. Treating these diseases can cost you \u2013 for example, a coronary bypass surgery could cost around RM60,000<\/a> at a private hospital (including inpatient charges like hospital charges, room charges and consultant fees).<\/p>\n

And these costs are rising. This year, Malaysia\u2019s estimated medical trend rate (i.e. increase in healthcare costs) stands at 14%.<\/a><\/p>\n

Luckily, your medical insurance policy can cover them if they arise. This is more important than ever now, as we might be entering<\/a> a recession. When a recession happens, your income may be affected, and your savings may be tied up in illiquid investments or investments that have suffered capital loss. If a medical emergency comes up, an economic recession can make it hard to rely on income and savings alone. But with adequate medical insurance coverage, you\u2019ll be able to afford these costs without putting more stress onto your cashflow or dipping into your savings.<\/p>\n

However, your medical insurance benefits will depend on your insurer and type of policy \u2013 so when you review your coverage, make sure that it is sufficient to cover current medical costs.<\/p>\n

<\/span>2. To give your family financial security<\/span><\/h2>\n

A coronavirus-sparked recession can be hard to deal with, because it threatens both your health and your income. In times like these, you\u2019ll want to make sure that your family is financially secure, even if your health is compromised. Having that financial safety net during an economic downturn can be comforting.<\/p>\n

One of the ways to do so is through life insurance. If something happens to you or your ability to earn an income, an adequate life insurance payout helps ensure that your family will still be able to live comfortably. Your family will be able to use the money to afford day-to-day living costs, or large expenses like a home loan or higher education.<\/p>\n

If you\u2019re a sole income earner, or if you partially contribute to your family\u2019s finances, you\u2019ve probably heard it all before: life insurance is crucial. But you should also consider getting life insurance even if you are a stay-at-home parent. Think about everything that you do for your family: transportation, meal preparation, child-minding, cleaning, home repairs and so on. If you were suddenly unable to perform these tasks, your family may need to hire other people to do so.<\/p>\n

<\/span>3. To account for new life circumstances<\/span><\/h2>\n

When was the last time you reviewed your insurance coverage? We\u2019re willing to bet that it\u2019s been years. If you\u2019re a young adult, you may not even have reviewed your insurance plans since the first time you signed up for them \u2013 when you were a fresh graduate!<\/p>\n

If that\u2019s true for you, then it\u2019s likely that your life circumstances have changed. Here are a few situations where it may be necessary to adjust your coverage:<\/p>\n