Ask Melanie | Back-up medical plan a popular choice
Melanie Nutbeam, a certified financial planner based in Hong Kong, addresses common personal finance queries. Send your questions to [email protected]
The chance of a 45-year-old male, even without possible congenital heart issues, suffering heart attack, cancer or stroke before age 65 is nearly 30 per cent. The chance of a 47-year-old female, let alone one that smokes, suffering heart attack, cancer or stroke before age 65 is nearly 25 per cent. You're right to be concerned.
Apart from premiums increasing with age, if either of you suffer a medical setback, this will make future cover difficult, or impossible, and certainly more expensive.
The key is to lock in your current health status now so you are not excluded from cover later if your health deteriorates.
Some group health programmes ask you to complete a declaration when joining that allows access to an individual plan later on the basis of your health at the start. Check if this was offered when you joined your employer's group scheme.
Secondly, astute employers sometimes negotiate for their scheme provider to immediately offer medical cover to departing employees without new underwriting conditions. That's a win-win for everyone. Check if your scheme includes this.