When To Review & Upsize Your Insurance Coverage
Life is constantly evolving, and your insurance coverage should be just as dynamic. But how do you know when it's time to take a closer look and upsize your protection? This guide can help you ensure that you remain adequately protected at every stage of your life.
Understanding the reviewing and upsizing of insurance coverage
Imagine reviewing your insurance policy as taking a check on your insurance coverage. It involves assessing your existing coverage against your current needs and potential risks. Upsizing, on the other hand, is like expanding your safety net. It means increasing your coverage limits or adding new types of protection to better match your evolving lifestyle and responsibilities. Both are crucial, especially in a world of rising costs and unforeseen events.
When do you need to consider an upsize?
Marriage/partnership: Your spouse/partner is now a dependent.
Growing family: Childbirth and raising children require additional cover for medical expenses, education, and future needs.
Career success/increased income: Higher income may mean higher coverage so your loved ones can maintain their lifestyle.
Financial obligations: If you've taken on new financial responsibilities, you may need to increase your coverage to avoid passing the obligation to your loved ones in the event of passing or to avoid being underinsured and having to take on further financial obligations.
Why insurance policy review and upsize is important
1. Protection Against Rising Costs:
Combating inflation: Medical costs rise with inflation. Basic insurance plans might fall short in the future. Upgrading your coverage ensures you have adequate protection regardless of rising costs, preventing a financial shortfall in critical moments.
Addressing medical advancements: Innovative treatments emerge constantly, often exceeding standard insurance coverage. Upsized critical illness plans with broader coverage or additional riders provide access to these treatments, giving you the best chance at recovery without financial stress.
2. Access to Advanced Medical Treatments:
Maximising your chances of recovery: Early diagnosis is important so that you get the best possible treatments. Upsized critical illness plans often cover a wider range of conditions and offer higher payouts, allowing you the resources to access specialised treatments that might not be covered by basic plans. This can significantly improve your recovery chances and overall quality of life.
Reducing out-of-pocket expenses: Advanced treatments can be expensive, leaving you with hefty bills even after insurance coverage. Upgrading your plan minimises your out-of-pocket expenses, ensuring you don't have to choose between financial burden and seeking the best possible care.
Steps to upsize your insurance coverage
Schedule a review: Contact your existing insurance agent/provider for a comprehensive review of your current coverage and insurance needs.
Choose coverage wisely: Select appropriate coverage levels based on your needs and budget. Consider factors like family size, desired income replacement, and potential risks.
Consider riders: Explore riders/add-ons for specific concerns like coverage for critical illness, personal accident, and premium waivers.
Keep information accurate: Update your beneficiary information and policy details to ensure your loved ones are protected according to your wishes.
Regularly reviewing and upsizing your insurance coverage isn't an expense, it’s a way of risk management in case of unforeseen circumstances. Be proactive in managing your needs, and don't hesitate to adjust your protection as life unfolds.
With medical inflation increasing an average of 10%–15% annually, it’s become more important to review your medical insurance and consider upsizing. Want a medical insurance plan that also protects your future needs? FWD MediFirst has up to RM5 million annual limit and unlimited lifetime medical cover. There is also an RM10 increase in Room & Board every 3 years and 10% increase in Annual Limit every 3 years. Get to know more about FWD Medi First.
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