Facing future unknowns without fear
Derek is an overseas educational consultant with over 20 years of working experience. His wife, Priscilla, works in administration at an international school. Both of their employers provide them with medical insurance, including clinical and hospitalization expenses, and they have previously purchased critical illness insurance plans with an insured amount of around HK$400,000.
Derek's father was diagnosed with colorectal cancer a few years ago at a private hospital. His doctor recommended that he undergo targeted therapy for the best treatment results. The whole treatment process, from surgery to chemotherapy, the use of targeted therapy drugs, and onto the post-operation diet, ended up costing around HK$1.2 million. Derek's father did not purchase any medical insurance plans when he was younger, and Derek had been too busy with work to plan for this before the illness struck. If they do not wish to seek treatment at government hospitals, they would have to use their own savings.
Although the couple has considerable income and savings, this illness has taken a toll emotionally and financially. Daily visits to the hospital have given them a first-hand experience of the suffering that patients go through, as well as driving home the importance of medical insurance. Since they do not have children, they would need additional protection for times of need in the future. Medical costs are on the rise, which means that the couple would need to re-evaluate their existing medical plan of HK$400,000 insured amount to see if it is sufficient to cover their medical and living expenses in case the unfortunate happens. . The couple should also consider purchasing hospitalization insurance, as their employers would not cover this after retirement. Some insurance plans have different grades for different levels of protection, and they can select the plan that best suits their needs and budget.
Realizing an ideal retirement life isn't easy. While it's important to maintain their health, the couple should also begin planning for the unknown. Like Derek and Priscilla, many people lead an active and balanced lifestyle in their youth, without giving much thought to hidden expenses in times of critical illness. As the population continues to age, the city's medical network will become even more overloaded. A good medical insurance plan would give you more options if illness strikes.
Special thanks to the case study provider: Financial expert: Simon Lee (Co-Director, International Business and Chinese Enterprise (IBCE) Senior Lecturer, School of Accountancy)
|Property Value:||HK$8.2 million|
|Remaining Mortgage Value:||HK$2.5 million|
|Combined Savings:||HK$1.5 million|
|Combined Assets Value:||HK$1.8 million|
There are many factors to consider for a healthy retirement life: