Have you ever wonder what would happen to the insurance you bought in Malaysia when you are abroad? Will it still remain in force? If you are thinking of migrating to another country for good, do you need to cancel your existing policies before you leave? These are some of the questions raised in the following article.
According to the writer of the article, most of your coverage would remain intact except for the part on medical when you stay abroad for more than90 days. She suggests that one might consider cancelling the medical riders, medical card as well as PA while keeping the rest of the coverage. At the same time, she also advises the readers to take up health insurance and PA when you are abroad even for a short stint to protect yourself against any mishaps.
Below are my personal view and opinion to those who are planning to migrate, work aboard for few months or few years.
If you have purchase an ILP Plan (Investment Link Plan) year back, my suggestion is not to cancel the medical riders or any other riders in the plan if you do not have any financial constraint even though you plan to migrate overseas for good.
Reason, Why I should keep the medical and other riders?
- Are you sure you will not be back for holiday?
- Short or Long stay to visit your family member in Malaysia? .
- Change your mind to come back to your country for retirement after staying in overseas for years?
- Change of Job and need to return to Malaysia?
If your answer is all Yes for question above, then you can cancel off the Medical riders and Minor injury riders
If your answer is No for question above, my advice is not to cancel the Rider. Why?
- Riders don’t really cost much in investment link plan
- All riders in our Company have cash value
- When you are planning to return to Malaysia you do not need to re-purchase the medical rider again at a higher purchasing price.
- At that point of time when you want to re-purchase the rider at the older age you might need to go for a medical check up
- You might face exclusion or loading for your medical card or might not be able to get a medical plan if you are having medical history for the past few years.
- You will need to wait for 120days waiting period if you re-purchase the medical riders.
So why take the hassle to cancel it and re-purchase it if they are not much effect on your long term financial planning, keep the comprehensive plan is a better choice, don’t you think so?
All insurance is claimable if you are overseas, medical card is claimable if you are overseas not more than 90days. Within the 90 days period, if you need to use the medical card for medical assistance, you can either pay by cash and receive treatment in overseas and use the receipt to claim for same type of unfortunate event with the medical cost at the market price in Malaysia by (MYR). You can evacuate back using international SOS and have the treatment done in Malaysia by using the medical card to admit to the hospital so you would not need to bear 100% medical cost by cash.
Think Twice before amending your benefit.