What’s one thing we all forget we have until we don’t have it anymore? Our health. It’s difficult – not to mention unpleasant – to think about sickness and death when you’re fit as a fiddle. But by the time you’re not, it’s likely too late. And therein lies the beauty of good medical insurance coverage. But how do you know if you’re well-covered? To further understand the importance of medical insurance, I spoke with JC Herbet, senior consultant of Abacare, an international insurance broker specializing in medical, life, and general insurance throughout Asia.
Cash in hand, rather than insurance?
Before we started, I had to be completely upfront with Herbet and let him know that I’ve always been reluctant to get medical insurance because I feel that I could save the money I would spend on premiums, and instead use those savings if a medical emergency occurred. If such an emergency didn’t happen, then I would at least have the money instead of sinking it all into premiums I won’t get back.
Herbet’s response was a silence that lasted long enough to make me think I’d dropped the line. Turns out, he was just contemplating his response, a terse but measured “No one saves enough money for all their medical expenses.” He went on to ask if I, currently in my 30s, had at least RMB 300,000 (less than USD 50,000) for a medical emergency. I do not. As he went on to explain that “every high net-worth individual has insurance,” I quickly realized how unsound my thinking was.
My employer provides my insurance, so I don’t need my own
Herbet also pointed out that my reliance on the medical insurance provided by my employer and my husband’s employer was rather unstable, seeing as how “you’re not married to your company.” Put another way, if we were to leave our companies, we would be put in the challenging position of finding new medical insurers on our own. And the older you are, the more likely it is that you’ll have pre-existing conditions that will either fall outside the scope of coverage or result in a higher premium. So the best thing is to have your own insurance policy, especially if you move around the world a lot.
What should I look for in a medical insurance policy?
Every individual’s circumstances are different so your insurance needs will differ from your neighbor’s. But in general, two things that should take priority are lifetime coverage and good inpatient coverage. According to Herbet, “So many people tend to overlook inpatient coverage and just look at outpatient benefits because nobody likes to think of themselves as needing to stay in the hospital. But that’s really the three greatest risks most of us face – heart attacks, strokes, and cancer.” The inpatient treatment fees for these medical conditions tend to run large, for example, chemotherapy could cost up to half a million RMB. It is also important to make sure your policy will cover you for your lifetime, and not stop at any given age.
Family insurance tip
Where possible, definitely get a maternity insurance policy that will include everything up to and beyond the birth, because that is the best way to ensure that birth complications and heaven forbid, any health problems the newborn might have, will be covered. Many health insurance polices give discounts for the whole family, so make sure you check with your insurance provider.
Beijing-specific insurers?
Some of the major medical insurance companies with a strong presence in China that receive Herbet’s stamp of approval include:
- Allianz, one of the largest global insurance groups from Germany.
- Bupa, an international insurance company that originated in the UK.
- CIGNA, a global health service company from New York.
- Now Health, a specialist insurer focused on worldwide coverage.
At this point, we should clarify that Abacare is an insurance broker firm. An insurance broker differs from an insurance company (such as those above) in that they represent the client’s interest first and foremost, whereas the insurance company represents its interests. This means that insurance brokers are also able to recommend policies from different companies that they believe will best serve you and your family.
Final tips
Herbet kindly shared some parting words of wisdom: “If your insurance premium is too low, it’s probably too good to be true.” Every now and then, an insurance policy promising its customers premiums that are much lower than market value comes along and gets a lot of attention. But as was the case of a policy called Swiss Care that gained such a reputation five years ago, the company increased its premiums by 50 percent the following year, after it had already lured in many customers. You might think that it’s not difficult to switch to a different medical provider should that ever happen to you, but as Herbet puts it, “Changing insurance providers is the privilege of the healthy.”
Got more insurance-related queries? Feel free to email Herbet at jeancharles.herbet@abacare.com or add him on WeChat!
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