Are there limitations to what hospitalization & surgical insurance can cover other than the Annual Deductibles or Co-insurance?
Yes there are indeed cost that a hospitalization & surgical insurance policy does not provide for, especially upon being diagnosed with critical illness and requiring an extended period of treatment & recovery.
Think long-term care, rehabilitation, cost of engaging domestic helper or caregiver, mobility aids, mortgage repayments (assuming the lack of mortgage insurance), day-to--day living expenses, follow-ups (if required), so on and so for.
The matter of fact is that critical illness can strike anyone at any time, either due to genetics, environmental exposure, habits, or just simply by pure luck.
Commonly speaking, when one is diagnosed with critical illness, the ability (or the Will) to work might be lost (at least for a period of time) & as a result, suffered the loss of income that would normally have gone towards providing for self and family members. Such a situation could result in mounting bills or debts, and the inability to finance regular expenses such as children's school, food, transport and many other expenses that were taken care of during the pink of health.
This is why having a Critical Illness (CI) insurance plan can make a difference.
Such policies pay out a lump sum benefit upon the diagnosis of a covered CI while the hospitalization & surgical plan takes care of the hospital bills.
According to Aviva's Long Term Care Study 2011, some of the after treatment costs can come up to as much as $2,150 a month, which might include:
With the medical advancements today, early detection of illness is possible and there are evidence showing that treatment of CI at its early stages improves the chances of recovery.
Having an adequate CI policy will allow the focus to be on recovery & not worrying about when the next "pay cheque" is going to come in.
Jason Ow S. H.
Senior Financial Consultant