Medical insurance has become a hot topic among the public, particularly Voluntary Health Insurance, which offers tax deductions. As the population continues to age and average life expectancy increases, people are concerned about the increasing burden of medical expenses. In addition, with increasing medical costs every year, people may only be able to opt for public medical services if they do not plan ahead. To further compound matters, the number of people waiting in line for public medical services is also increasing. Therefore, it is a good idea to apply for medical insurance to avail of better medical care and options in the future. In this article, several points to consider before applying for health insurance are provided for your reference.

Medical insurance is basically divided into hospitalisation, outpatient service, and critical illness categories. When applying for insurance products, one must take note of whether the sum insured and benefit period of the items meet their needs, as well as one’s ability to bear the insurance premium. In the case of a direct reimbursable inpatient medical product, there is a maximum covered amount for each claim (e.g. doctor's visit fee, anesthesiologist's fee, etc.) and on the whole policy. Expenses exceeding the maximum amount are settled by the insured. The duration of coverage is also very important as some policies end at the age of 70, which is lower than the average life expectancy of Hong Kong people as cited by the Census and Statistics Department.

In addition, there is a "waiting period" for general hospitalisation medical insurance, and pre-existing conditions are not covered. Some insurance companies may impose longer waiting periods for individual diseases (e.g. gynecological diseases) during which compensation may not be payable if an illness occurs and treatment is received. Before making a decision and signing an insurance contract, it is best to spend time researching beforehand to understand one’s needs and the different market products available. They can also then seek professional advice from insurance agents. In addition, it is also vital to carefully read the scope of coverage and exception clauses in the insurance policy.

With the advancements in medical technology, supporting services have also increasingly improved. More minor operations, such as gastrointestinal endoscopy, cataract surgery, etc., can be performed in day surgery centres without hospitalisation, which saves patients' time and money. Be mindful of medical insurance products on the market stating that the insured can be reimbursed only if the operation is performed in hospital, it is medically necessary, and the cost is in line with the general market level. In other words, if the insured person receives a gastrointestinal endoscopy procedure at a day surgery centre, there is a chance that he or she may not be eligible to claim for hospitalisation medical compensation.

It should also be noted that the premium rates of medical insurance products can be adjusted. In general, in addition to annual premium increases based on age, insurance companies may raise the fee in response to compensation records and medical cost inflation, which may result in long-term additional expenses for people approaching retirement. Therefore, when choosing medical insurance products, applicants must take into account his or her ability to pay the premium.