DON'T WAIT TILL IT'S TOO LATE!

The cost of healthcare is rising sharply and unless you have enough healthcare insurance, you may face financial difficulties if you run into unexpected medical problems.

Often we never think of a hospital plan until it's too late.

There is the risk that you may not be insured if you fall seriously ill.

Also, once you are hospitalised for an illness, the illness is likely to be excluded from your plan and it may result in higher premiums being imposed for the additional risk.

High hospital bills can cause financial difficulties.

Take for instance a child, Megan, who incurred a hefty bill for $5,000 after a five day stay in hospital for pneumonia and asthma. As she had no insurance coverage, her parents had to dig into their hard earned savings to make payment.

In another instance, an elderly gentleman, Mr Bhaskaran, was faced with a medical bill for $8,261 after a 7-day stay in hospital following a heart-attack. The cost would have been significantly higher if he had stayed in an A or B1 class ward instead of the highly subsidised B2 ward in a government hospital.

These are two real life examples that highlight the importance of buying hospital cover.

Fortunately in the case of Mr Bhaskaran, he had a MediShield policy from a private insurer and was able to claim reimbursement of $2,554. But he still had to bear the difference of $5,707 ($8,261 less $2,554), which is a sizeable amount.

MediShield policies have deductible and co-insurance features and therefore do not pay for every dollar of expenses, which is one reason why Mr Bhaskaran had to fork out the difference of $5,707. But there are insurance policies that can help to cover this additional amount.

One such policy is OAC's Hospital Illness CarePlus which also provides protection from SARS and any other illness.

Here are 8 reasons why you should consider this policy seriously:

1. The premiums are very affordable

Age Group	Monthly Premium Per Person^
1 to 18	S$14.35
21 to 30	S$16.85
31 to 40	S$20.28
41 to 50	S$26.00
51 to 60	S$31.20
61 to 65 (for renewal only)	S$43.16

^ Premiums include 4% GST and increases as the insured person enters into the next age group

2. No medical examination is required

3. It offers worldwide coverage

4. Get $200 cash benefit per day* for hospitalisation

5. Get $400 cash benefit per day* if admitted to ICU

6. The cash benefits can be claimed even if you have existing insurance, employers' insurance and MediShield cover

7. If you don't make any claims, you'll get a refund of 25% of your paid premiums each year

8. Get 30 days free coverage upon acceptance and approval of your application by OAC

* For 730 days