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Protect your family finances
Before arriving in Malaysia as an independent expatriate or posted by your employer, you need to consider how to protect your family finances in the case of sickness and accident – or even how your family will be protected financially in the event of a death.
Malaysia offers expatriates a welcoming home away from home. Like any country however, its social services are geared to the needs of the local population and it is essential to make sure that you have the right insurance to provide you with the level of financial protection you need. This falls into three main areas, international private medical insurance to give you and your family fast access to medical treatment, income protection to replace your salary if you are unable to work due to long term illness or accident and life insurance to protect your family’s finances if you’re no longer there to provide for them. For expats moving to Malaysia on the Malaysia my Second Home (MM2H), long term visa programme, international private medical insurance is a compulsory requirement of obtaining a visa.
Malaysia 's medical services are among the best in the region, however if you need medical treatment you’ll need to visit one of the many private hospitals or clinics and pay for your treatment. Private medical insurance (PMI) is designed to cover these costs – but make sure that the policy you buy is an ‘international’ policy geared to expatriate needs as a traditional domestic policy from your home country or country of residence is unlikely to provide the level of cover you need in Malaysia and other countries you visit.
Check the policy provides full emergency medical evacuation cover in case you are taken ill in a remote area where medical facilities are scarcer and local 24/7 emergency assistance. Different international PMI policies are designed either to cover essential healthcare needs if you’re on a budget or higher levels of protection if you want to cover a wider range of conditions such as maternity care or cover for the treatment of chronic illnesses. If you are living with your partner and children buy a family policy which covers you together as these are generally available at a lower premium than buying individual policies.
Medical emergencies are not the only financial risk you will face. If you suffer an illness or accident that leaves you unable to work, you’ll need an income wherever you recuperate as once an expatriate, you may not be entitled to full state-funded benefits – which are minimal in most countries to start with. Income protection policies are designed to provide you with a replacement income while you are unable to work. Again it is prudent to buy a plan designed specifically for expats as you are likely to find restrictions in domestic policies which will make it difficult to claim if you are working overseas. Plans can replace up to 75 per cent of your salary with payments made continuously until you are either fit to return to work – or right up to retirement age if necessary.
Finally, don’t overlook life insurance. It’s an unpleasant thought, but your family will need protection to provide a reliable income to replace your earnings if you die before you reach retirement age. Fortunately life insurance is generally low cost and you can easily buy cover providing up to 20 times your annual salary for a low monthly premium. Again, remember that any domestic life insurance plans you have taken out at home may not pay out in Malaysia, so look for an international plan designed with the expat in mind.
Customer Sales Desk, William Russell (Asia Pacific), Telephone: + 6 03 2171 2071 , email: saleskl@william-russell.com
web: http://www.william-russell.com/individualsandfamilies/expats-asiapacific/malay/