Is It Time To Review Your Expat Insurance Coverage In Malaysia?

Having adequate life or health insurance coverage is a necessity if you are an expat living in Malaysia. Without it, there can be serious real-world ramifications.  

For example, you might face issues finding a doctor who can communicate effectively. Similarly, without the right coverage, your family and loved ones could face financial strains if you’re diagnosed with a terminal illness or if you’re no longer around. 

In this article, we tell you why you should review your coverage regularly and what you need to know when reviewing your insurance.

To ensure you can afford medical costs.

Comprehensive health insurance can give you peace of mind as the financial protection it offers will keep your loved ones safe from financial distress.

However, the protection is only as good as your coverage. It is important for you to regularly review it so that everyone is protected if something were to happen.

‍Unisure’s report indicates that cardiovascular disease and cancers account for 49% of all deaths but account for approximately 90% of all critical illness insurance claims. 

Without coverage, treating these diseases can be costly. Just a coronary bypass surgery could cost you around USD18,000 at a private hospital (including inpatient charges like hospital charges, room charges and consultant fees). 

In 2022, Malaysia’s medical inflation rate (i.e. increase in healthcare costs) stood at 12%. But with the right international health insurance as an expat, you can afford private healthcare costs in Malaysia or seek treatment in your home country if necessary.

As your health conditions and requirements change over time, so should your coverage. Your insurance should include benefits to fit your needs while also covering any current and future medical costs.

Providing for your dependent’s medical needs.

Whether you are a digital nomad or on an international posting, the level of international expat health insurance coverage that you need can change depending on you and your family’s needs. 

If you have no dependents with you, your coverage should reflect your individual needs in Malaysia and across the globe. However, if your children, a spouse or parents join you for an extended stay, their medical needs are just as important.

Factors such as changes in your income, facing unexpected expenses, or even deciding to add or remove a dependent, should be considered when reviewing your insurance coverage.

To take it a step further, you should periodically assess whether additional policies will be needed (dental, mental health, critical illness) to make sure that you and your family are financially secure, even if your health is compromised. 

Reviewing life insurance to account for new circumstances.

Getting married, having children, or moving to another state or country are life-changing events that need to be accounted for when reassessing your expat life insurance. 

Situations such as the ones below will require you to adjust your coverage accordingly:

• You have gotten married (or divorced). If you have gotten married, you and your spouse may now rely on each other financially, warranting higher insurance coverage. On the other hand, a divorce may mean removing your spouse as one of the beneficiaries of your insurance policies.
• You have more income. Typically, as your income grows, so do your lifestyle expenses. Consider if your insurance payouts can now meet your lifestyle needs.
• You have more financial obligations. Are you responsible for paying off a car, a home, a child’s education, or a personal loan? Consider if you need increased life insurance coverage to help your family cover these costs if you are unable to.

It’s important to review and decide whether your current coverage is enough to provide financial security for the people you care about, should the worst happen to you.

In addition, policies such as early terminal illness or global coverage in life insurance for expats are a must-have in providing tangible financial protection to your loved ones.

How do you review your coverage?

When reviewing your expat insurance coverage, it can be helpful to know the following information:

• Type of insurance. Is it health insurance, life insurance, disability insurance or something else? Knowing what types of insurance, you have helps you figure out if there are gaps in your coverage.
• Term length. Some policies have an expiration date. You will want to know when a policy expires, so you can decide if you still need coverage after that date.
• Premiums. How much are you paying, and how frequently? This helps you keep track of whether your paid premiums are up to date.
• Benefits. What is the sum assured of your policy? Does it have security currency or global coverage? Consider if these benefits can cover current medical costs, your growing lifestyle needs and changing life circumstances.
• Beneficiaries. Whom do the benefits apply to? Does it apply to you, your spouse, or your children? This helps you tell if you need to update your designated beneficiaries.

We want to make the process of reviewing and updating your insurance coverage as seamless as possible. Our team of experts will go through a checklist of what you need for your coverage so that you can have the most comprehensive life or health insurance plan. 

‍Talk to one of our Private Wealth Managers.