Insurance can only be for the healthy, not the Wealthy.

I have heard many saying that “Insurance is expensive, I do not have the money.” Is insurance only for those who can afford it?

The truth is… Insurance can only be for the healthy, not the wealthy.

I have always shared with my friends that if you think you are an average income earner, you should get insurance when you are healthy. And the reason is simple, the high-income earner can afford to pay for their medical bills should anything happen to them but an average income earner needs insurance to ease their worries in unfortunate events.

Have you encountered someone who has the ability to purchase insurance but was rejected by the insurance company due to health conditions??

Why is it important to get insurance while you are healthy? Most of us may be confused over the different types of insurance, let me briefly explain them in a high level, easy to understand way.

1. Hospitalization insurance - Meant to protect you in event of a medical condition or emergency that requires hospitalization. It reimburses the hospitalization, surgical and related expenses that may be incurred. Actual coverage will be dependent on the type of plan chosen.?
2. Life Insurance - Pays out a lump sum amount, known as the death benefits, to your chosen beneficiaries in the unfortunate event of death or total permanent disabilities. Your beneficiaries may use the amount for any purpose. This provides financial security to your loved one and particularly important if you have dependents who solely rely on your income.
3. Critical illness insurance - Pays out a lump sum if you are diagnosed with a critical illness (typically referring to a serious condition that affects the quality of life). The payout can be used for many purposes such as replacement of income, paying for long-term care and rehabilitation expenses, and managing regular living expenses and financial obligations given that critically ill patients often may not be able to continue their work in full capacity.

Like most people, you may feel financially secure with a few goods and sufficient insurance policies. Although the procedure to purchase insurance is simple and quick, some are rejected. One of the key reasons is the presence of pre-existing conditions at the point of purchase.?

I have witnessed many cases of exclusions of certain conditions or even full rejection of applications due to pre-existing conditions.

Hence remember, insurance can only be for the Healthy, not necessarily the Wealthy.