Starter Guide to Financial Planning
The Danger Of Changing Your Integrated Shield Plan
Before we start talking about this, let’s make sure that everyone understands the difference between MediShield Life and an Integrated Shield Plan (ISP). And it is beneficial if you know how they work together.
To summarize, both are used to pay to help you financially when paying for your hospitalization and surgical bills. MediShield Life is something mandatory but for an ISP, you are able to select from whichever insurer you want to purchase from.
Choices of Shield Plans
As of now, there are seven insurers that are offering an ISP or sometimes referred to as a Hospitalization and Surgical plan as well. Thus, it all means that you have choices.
Definitely, each insurer has their own unique selling point and extra benefits there may attract you. There is never a wrong choice but definitely, there are differences between each plan. It is the same as choosing a roll of yarn from a shop. There are many choices but all serve the same purpose.
Nevertheless, you will eventually have to come down to a choice.
Newer plans, more attractive benefits
Anywhere in the world, when there is something new, you are somehow attracted to what is being offered. You start doing your research and also ask for opinions about that particular new product.
Being a business, there will forever be a new product being produced to attract more new customers. But, in the case of an ISP, you should not treat in the same way as a new smartphone.
A “New” Person
For example, you currently have an ISP with Company X. You bought the plan in 2008. Just this year, 2018, Company Y just released a brand new ISP and you are tempted to change over to Company Y.
Changing or getting a new ISP is never the problem. It superbly easy and you do not have to do much. But what is the problem here then?
In 2012, you suffered a heart attack and unfortunately, you survived from it. You are still the same person in 2018 but your health condition and history have indeed changed.
Sidetrack momentarily. An ISP can be sold to you IF only you are healthy and have no history of illnesses. If you are not any of the above, there is a chance you will be:
- Rejected
- Accepted BUT with an Exclusion of a certain illness
- Accepted BUT with loading (extra premiums)
The ISP that you have with Company X has accepted you with an understanding that you are fit and healthy. As they have underwritten you with your condition as at 2008.
But if you were to change over to Company Y, they would have underwritten you with your condition as at 2018. And at 2018, you already experienced had a heart attack.
With that, there is a possibility that you may be:
- Rejected
- Accepted BUT with an Exclusion of a certain illness
- Accepted BUT with loading (extra premiums)
That is control-V from above.
Thus, to sum it up with the example above, you may not be fully covered. That means, there will be shortfalls.
What if nothing happened to me? Can I still change?
If you are fit and healthy, you are quite safe to change over to a new ISP. But, ask yourself, why do you want to change?
Are the cheaper premiums worth the risk? Is that new benefit really that worth it? Will I be really gaining anything if I change?
If you are able to justify all of the questions, it is still totally up to you. But just make sure you are able to bear the consequences if anything goes wrong (a huge claim that cannot be reimbursed).
Having a peace of mind
After all this, it is really important for you not to repeat the mistake that some people have experienced. Whenever you decide to replace an insurance policy, make sure you know all the cost and possible disadvantages that may occur.
Hope that this article was useful. Do share it with your family and friends. Till next time.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
