Unsure the place to start out in the case of selecting the best medical insurance coverage in Hong Kong? You’ve come to the fitting place. On this fast information, we’ll be evaluating the Voluntary Well being Insurance coverage Scheme (VHIS) with common medical health insurance.
In April 2019, the Hong Kong authorities rolled out the VHIS with an utility closing date of July eighth, 2020. Already, there are 29 choices for the Commonplace Plan and over 211 choices for the Flexi Plan. The alternatives could be staggering.
So, what’s the distinction between VHIS and conventional medical health insurance? How do you apply for tax deduction? Right this moment at INO, we’ll offer you a fast rundown to all of your frequent VHIS questions.
VHIS vs. medical insurance coverage
Below the VHIS, Licensed Plans are divided into two classes: “Commonplace Plan” and “Flexi Plan”. The previous offers fundamental inpatient protection, whereas the latter offers further, versatile safety on high of that. For instance, with a Flexi Plan, you possibly can take pleasure in the next profit restrict and broader protection.
To be licensed as a VHIS product, all plans should adhere to a standardized set of phrases and circumstances set out by the Meals and Well being Bureau (FHB).
With that stated, is it at all times higher to modify to a VHIS coverage? Not essentially. Within the following part, we’ll evaluate and distinction the professionals and cons of VHIS and common medical insurance coverage.
Every contains its personal alternative of coverages
All VHIS merchandise should adjust to the FHB’s 10 commonplace clauses. They have to cowl psychiatric therapy, outpatient surgical procedure (together with endoscopy), diagnostic imaging testing (ie. CT, MRI, PET, PET-CT, PET-MRI, and so on.), and non-surgical most cancers therapy. As you possibly can see, the protection is extra in depth. In distinction, medical insurance coverage could not supply these protections.
Protection for “unknown” and “congenital” ailments is the most important benefit of the VHIS. Bought an unknown pre-existing situation? You gained’t obtain any compensation within the first yr. Nonetheless, you’ll obtain 25% of the compensation within the second yr, 50% within the third yr, and full compensation from the fourth yr and onwards.
Congenital ailments consult with sicknesses that seem or are recognized after 8 years of age. So long as the illness is included within the clauses, it is going to be lined even when it hasn’t been recognized in the beginning of your insurance coverage.
Assured renewal till you’re 100 years previous
Are you a senior citizen who doesn’t have an insurance coverage plan in place for whenever you get severely unwell? Then, you’ll should shoulder the sky-high medical invoice. Most well being plans solely settle for candidates below 65 years of age. Solely a measly 20% permits plan renewal for seniors who’re 80 years or older. Even in case you’ve secured a plan, in the long run, quite a few circumstances are unlikely to be lined. In different phrases, your insurer would solely supply restricted protection.
From 15 days previous to 80 years previous, anybody is ready to buy a VHIS plan. Assured renewal can also be out there till you’re 100 years previous. Some Flexi Plans even safeguard seniors’ well being by together with a lifetime renewal profit.
No “lifetime profit restrict” is feasible
Most medical health insurance in the marketplace has a cap on lifetime protection. When you surpass the insurance coverage protection restrict, you possibly can now not file for claims.
In distinction, VHIS’s profit quantity is calculated based mostly on “coverage yr” with an annual compensation cap of HK $420,000. In different phrases, yearly, the very best protection quantity shall be reset after which recalculated. That is the most suitable choice for somebody with persistent sicknesses or wants long-term medical care.
Nonetheless, take into account that not all VHIS product has a cap on the lifetime profit restrict. Fastidiously learn over the phrases and circumstances earlier than you make your buy.
VHIS contains tax deduction
To encourage residents to hitch the VHIS scheme, the HK authorities offers tax advantages for policyholders. Taxpayers like your self or your family may apply for a tax deduction whenever you buy a VHIS well being plan. This contains your associate, your little kids, paternal and maternal grandparents, mother and father, and siblings. The upper the tax charge, the upper the corresponding quantity of tax deduction.
Each taxation yr, every policyholder’s most premium deduction is HK $8,000. What’s extra, there’s no restrict to the variety of insurance policies and the variety of policyholders who can apply for a tax deduction. Assuming that the usual tax charge for all policyholders is 17%, then you definately get nearly a 20% low cost on medical insurance coverage.
Premium transparency
All VHIS merchandise are designed and controlled by the federal government. To extend market transparency and promote value competitors, all insurance coverage corporations should publish the premium schedules of their licensed plans. As well as, it is possible for you to to take pleasure in a 21-day cooling-off interval throughout which you’ll be able to cancel the coverage at any time and obtain a full refund.
Switch or re-underwriting would possibly enhance your premium
Wish to switch your medical well being plan to a special insurer’s licensed VHIS product? The brand new insurance coverage firm has the fitting to demand a re-underwriting process. Sadly, you would possibly get turned down because of your well being situation.
On the flip facet, the insurer could settle for your utility to switch to a VHIS plan. Nonetheless, they don’t have any authority to request re-underwriting and should assure that you’re renewed till the age of 100 in the event that they cost you in accordance with the VHIS commonplace premium.
All insurance coverage corporations which have participated in VHIS ought to have an possibility out there for his or her shoppers to switch to VHIS. Nonetheless, it’s as much as the insurers to find out the time of the “switch interval”. Please verify together with your insurance coverage firm for particulars.
Does VHIS embody “COVID-19 protection”?
The FHB confirmed that each one licensed plans will present COVID-19 protection after the coverage comes into impact. When you’re recognized or suspected that you just’re contaminated with the coronavirus, all associated inpatient charges protection shall be calculated based mostly on the phrases and circumstances.
Even VHIS must be chosen rigorously
The Commonplace Plan of VHIS could not be capable of supply 100% of the protection objects in common medical insurance coverage. Such examples embody kidney dialysis, non-public nursing charges, and mattress fees for accompanying relations. Rashly switching from medical insurance coverage to VHIS could even value you to lose necessary advantages.
Wish to change to VHIS whereas concurrently guaranteeing you get satisfactory safety? Contemplate going for a Flexi Plan. You might be inspired to determine what you want, then rigorously evaluate the phrases of the insurance policy.
To just be sure you’re making the fitting alternative, essentially the most dependable manner is to contact an insurance coverage dealer like INO as quickly as doable.
Along with VHIS, INO additionally offers a wide range of merchandise reminiscent of automobile insurance coverage (third-party and complete), bike insurance coverage, and home helper insurance coverage. Use our on-line citation system to get a free quote at this time! Wish to chat with us? Contact our crew of professional insurance coverage advisors! They’ll present neutral recommendations and make it easier to discover the proper insurance coverage answer.
