Simply having an insurance policy in place is not always a guarantee of peace of mind. Whilst there is always a temptation to go with the cheap option, insurance is a product where you really can leave yourself wide open to problems if you adopt this approach. This is this case in many lines of insurance, but this article will focus on underinsurance in health insurance and property and contents cover. Being under-insured with either of these insurance types can have serious implications on your financial well-being and even your long term health. Don't risk the dangers of underinsurance, Thailand Medical Insurance is a must.
In Thailand the market is awash with health care policies with maximum benefits in the 100’s of thousands of baht. Great for coughs and colds and minor accidents, but if you are unfortunate enough to be involved in a serious accident, get cancer, or need an organ transplant, policies of this nature will only contribute to the overall costs. Who then will pay the balance you may ask? The answer is simple… you do! This could result in you having to utilize savings unexpectedly or having to raise money from friends and relatives… not the sort of thing you will want to be doing when sick. If you hope that the hospital or insurance company will foot the remainder of the bill then you really need a reality check. Both are businesses, and businesses don’t do freebies!
As well as the overall plan limit it is worth fully understanding the sub-limits on the policy too. You can either do this yourself or enlist the help of your broker/agent. All products on the market are very different in terms of what they do cover, what they don’t cover, and what is excluded from cover. Doing your homework at an early stage is vital, as it will mean you do not come unstuck at a later date. Issues which can arise include waiting periods imposed by insurers on certain conditions, for example cancer and psychiatric care, and limits on the number of visits you make for a specific condition.
Property and contents insurance cover is another area where it is vital to make sure the cover you have in place is adequate. When you apply for this type of cover, it is down to you to provide up to date and accurate data as to the value of your property and the possessions you have within it. If you make a claim and it comes to light that you were under-insured then the law of average will be applied by the insurer. This will drastically reduce the claim payment you receive. Say for example you insured your property for 10 million baht, and the actual value at the time of the claim was 20 million baht, then you would only receive 50% of the claim. Therefore it pays to work closely with your broker when it comes to applying for the policy, and it also pays to be honest and accurate.
If you are going to go to the effort to get yourself insured, then make sure you get adequately covered. Feel free to call us today for free advice!