4 Reasons to Consider Medical Insurance for Your Child

Medical plan for your children: necessary or optional? We take in to consideration the needs for a protection plan.

Some parents choose to wait until their children are older before getting them getting medical coverage. If they are lucky enough, their Employee Benefit may also provide healthcare insurance for their children. In the interim, the child’s medical needs would either be paid for as an out of pocket expense at public or private healthcare centers. Having said that, it must be noted that most public medical facilities are often overbooked or have a long waiting list for certain treatments or consultations.

It is not uncommon to hear of newborns or young toddlers needing medical treatment for certain health conditions, especially respiration or infection-based conditions. Although most parents hope for the best for their child, a solid medical plan allows them to have access to quality medical assistance or subsequent consultation in the event of post-hospitalisation cases. This can help catch symptoms of specific illnesses while in the early stages and minimise the likelihood of these symptoms taking a more serious turn.

The common argument against getting a child a medical insurance plan is that their medical expenses, if any, would be limited and a fraction of the cost of an adult’s. In light of that, it is important to take note that medical costs for treating a child is no different than the medical treatment cost for an adult, and neither are immune to price increases which happen year on year. Having a medical plan for your child not only provides access to quality healthcare when they need it the most, it also provides a financial safety net in the event of a medical emergency.

As children are the youngest and have the lowest likelihood of using all of their claims, the premium is more affordable for them from the get go. There is also a possibility of converting their medical plans when they turn 18 into a plan with more coverage, with no medical check-up required. Another advantage of getting protection for your child is the ability to maximize tax relief. To qualify for relief of up to RM3,000 yearly, ensure that the medical policy is in both you and your child’s names.

Once you have made the decision to protect your child, you can choose from two types of medical protection plans available. The main difference between both are additional benefits for each plan: 

• A standalone medical plan like A-Life Med Regular is sufficient to cover all medical costs, including hospitalisation, consultation and treatment. It is an ideal plan if you’re looking for the most basic coverage and a fundamental standalone medical plan if you already have an existing term life insurance.
• A medical plan that rides on an existing life policy, like the A-Plus Med, offers additional medical coverage on top of existing life protection. You can also choose a more comprehensive rider that guarantees the payment of your child’s policy, in the event of your passing.

References

http://mypf.my/risk/life/child-insurance-coverage/

https://www.cdc.gov/hand-foot-mouth/

http://www.thestar.com.my/news/nation/2016/06/16/malaysia-on-hfmd-alert/

http://www.childrenshealthcampaign.org/assets/pdf/School-Kids-Need-Insurance.PDF

http://www.thestar.com.my/opinion/letters/2010/04/04/claims-for-medical-expenses/

The above articles are intended for informational purposes only. AIA accepts no responsibility for loss which may arise from reliance on information contained in the articles.