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Investing involves making predictions. Unfortunately, in many cases, many of these
predictions do not happen. No matter how well and qualified the experts are, the
world of investing has so many variables and is such a complex system that successful
prediction is a consummation rarely experienced.
Proper financial planning is vital to safeguard against uncertainties. Generally
speaking, people plan their money for various reasons such as retirement, children's
education, buying a second car and planning for healthcare.
Your health like investing, is hard to foresee but it is something that one cannot
afford to neglect. It is an important component that should be considered when planning
your finances. Ask yourself when was the last time you went for medical check-up.
Do you have a family doctor for most of your health care needs? Do you know how much
you spend on medical expenses every year?
Like an investment portfolio, your health also needs periodic tending. A gardener
will not sow the seeds and then walk away expecting flowers to bloom on its own.
Without proper maintenance, even the best garden will slowly turn to weeds. Like
wise with your health if you do not look after it, do not expect to stay healthy
forever. Taking care of your health can cost a fortune particularly if you have been
afflicted with some sort of disease or illness.
When we were young, our parents took care of us. But things are different now when
you have to take care yourself or your family. The escalating cost of medical care
could burn a big hole in your pocket. Major medical expenses such as hospital, surgical,
physician, etc can be exorbitant. Senior citizens are more likely to incur higher
medical costs than the younger ones.
A few days stay at a private local hospital can add up to thousands of Ringgit. It
is worse if you are cash strapped. In the event of an emergency - how will you pay
the bill? Very often, money never goes to people who need it urgently.
We like to be protected and ensured of good health but maintaining a perfect health
record is not cheap. Parents often have a big burden supporting their children's
medical expenses. Financial planners would agree that some form of medical package
should be included in ones financial portfolio. It may not be possible to plan for
a crisis but it is possible to plan your response.
The life expectancies for male and female are 69 and 74 years respectively. See Table
1.
| Table 1. Life Expectancy (age in years) |
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1992
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1993
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1994
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1995
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1996
|
| Male |
69.4
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69.4
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69.4
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69.4
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69.3
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| Female |
73.6
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73.8
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74.0
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74.1
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74.1
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If you retire today at 55 years old, you will probably live another 20 years.
This means your retirement money has to tide you over for a longer period of time.
Future cost of living will no doubt skyrocket significantly and already medical costs
are rising beyond what some can afford. As your age is increases, you are likely
to incur heavier expenses on healthcare unless you are superfit.
By preparing yourself with the necessary tools, you can take the drama out of a potentially
costly crisis such as major sickness or a road accident. A parent who keeps track
of the family's medical expenses will tend to agree. How do we plan and cope?
With the medicare costs skyrocketing, some relief may be insight. The tonic: insurance
or healthcare products. Over the years, the number of insurance or healthcare products
structured to meet a wide range of individual investment and risk profiles, have
been on the rise.
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