Is it worth combining one's savings plan and medical insurance into one?

medical saving

“Everyone buys medical insurance, but does anyone want to make any claims?”  Many people today purchase medical insurance whilst praying for good health and therefore not needing to make any medical claims. However, staying healthy makes us feel as though all the premiums we have paid just went down the drain, making it very difficult for us to decide whether or not to enrol in a medical insurance plan. First of all, whether we should buy medical insurance? First of all, we need to understand clearly if the prevailing social circumstances allow us not to buy.

Are you sure you will never get struck by crisis?

We have many goals in life. We make savings plans when we are young to achieve our goals, and yet we put medical insurance as our last priority. Many people believe that they are young and strong, and therefore, ignore the needs for medical and crisis protection.  For a fact, crisis can strike people of all ages. According to the latest data from the Hong Kong Cancer Registry, the number of new cancer cases diagnosed in Hong Kong in 2016 was up by 33% from a total of 23,750 new cases in 2006. It is estimated that the number of new cancer cases in 2030 will increase by 40% as compared to that in 2016. In addition, the data showed that there is a downward trend in the age of people suffering from breast cancer. Breast cancer specialists pointed out that in the 22-44 age group, there were approximately 25.8 in 100,000 people (or 690 new cases) developed breast cancer in 2016, representing an increase from 22.3 people (or 617 new cases) in 2006. The youngest patient was a 23-year-old female. The increase in the number of new cases may be linked to high pressure, high-fat diet and delayed childbearing experienced by women of this generation. Therefore, in order to prevent any unexpected medical expenses throwing one’s savings plans out of whack, young people should prepare adequate medical and crisis protection for themselves as soon as possible.

Is your savings enough to fight medical inflation?

Inflation increases not only our cost of living but also our medical expenses. In 2017, the price index of medicines and medical services increased by 38.6% and 35.1% respectively1, overtaking the overall increase in consumer prices. Whilst Hong Kong citizens can choose to use public medical services, we are facing an ageing population, which could be a problem. A government survey indicated that the proportion of the population aged 65 or above is projected to grow by 33% in 20642, causing a shortage in public medical services. In case of any sudden or unexpected health events, medical insurance can help ease your financial stress as it will cover some of your medical expenses.

Addressing concerns about buying medical insurance

Those who resist buying medical insurance may believe that:

  • Buying medical insurance is a waste of money if you never make any claims
    Medical insurance is a reimbursement plan. If you need to receive treatments in a hospital, you will be glad that you are covered by medical insurance. In contrast, those, who never made any claims may feel like they are throwing money away, or even suggest their families and friends not to buy medical insurance.

  • A policy of a lifetime
    Medical insurance seems to be a long-term commitment, and we have to pay premiums until the end of the policy term. For a policy with a longer term, it is not a problem to pay the premiums when the policy owner has stable income. Yet, when thinking about the possibility of living a low-cost retirement life and facing inflationary pressure, we may be reluctant to buy medical insurance, of which the premiums will usually increase with age. Therefore, some people would rather rely on the medical services provided by the government in old age than take the risk of losing the medical protection if they could not afford to pay the premiums anymore.

    We always find ourselves in a dilemma when deciding whether or not to buy medical insurance. In fact, there are plans designed to address the two concerns above, and FWD’s MediSaver Supreme is one of them.

FWD’s MediSaver Supreme offers the following:

  • Fixed premium payment term
    Assuming that the insured is 35 years old and chooses a premium payment term of 20 years, he or she would pay off the premiums at age 55 and continue to enjoy coverage until the age of 1003. The insured no longer needs to worry about paying premiums in old age.

  • Protection and savings in one plan
    Apart from providing protection for the insured, the policy also contains savings components that include guaranteed cash value and terminal bonus, helping you grow your policy fund. If no claim has been made, the breakeven period can be as short as 20 years4.

  • Double medical protection against designated crises
    If the insured is diagnosed with a covered crisis (cancer, heart attack or stroke), the plan will offer an additional crisis cover that is equal to the sum insured to fully cover the eligible expenses for hospitalisation benefits, surgical benefits and other benefits up to the per covered crisis limit (equals to double of the per disability limit) and maximum coverage for covered crisis. The plan will first deduct any claims for a covered crisis from the additional crisis cover so that the coverage, guaranteed cash value and non-guaranteed terminal bonus will not be affected. Once the maximum benefit limit of additional crisis cover is reached, the claim for covered crisis will be deducted from the medical savings account. The policy will be terminated when the sum insured is reached5.

Even though there are many types of medical insurance products and they are all complicated, medical protection plays an important role in financial planning and in our life. We must think thoroughly and ask questions in order to choose the most suitable plan for ourselves. Do not let misunderstanding stand in your way of buying medical insurance at the right time. It will be too late to realise the importance of medical insurance when you are already sick or in a bad health condition.


  • 2030年癌症人數料增4成 “The number of cancer cases expected to increase 40% by 2030. " (21 November 2018).
  • 乳癌年輕化 “Increasing incidence of breast cancer amongst younger people. " (20 November 2018).
  • Note 1: The Consumer Price Index released by the Census and Statistics Department, HKSAR in February 2017. Based on the Consumer Price Index 2007.
  • Note 2: Hong Kong Population Projections 2015-2064 released by the Census and Statistics Department, HKSAR in September 2015.
  • Note 3: The policy will be terminated when the total amount of claims paid and/or payable for hospitalisation benefits, surgical benefits and other benefits under the medical savings account reaches 100% of the sum insured.
  • Note 4: The breakeven period assumes that the insured is a male non-smoker, his age on next birthday is 30, with deferred medical cover, with a premium payment term of 20 years (the sum insured of the basic plan remains unchanged during the policy term and the premium remains unchanged during the premium payment term), the sum insured is US$125,000 (no additional premium), all premiums are paid in full, no indebtedness, no withdrawals have been made during the policy term and no claims or partial surrender have been made. Since the total premium is non-guaranteed, this breakeven period is non-guaranteed.
  • Note 5: The payment of the death benefit, maturity benefit and surrender value will be deducted by any claims paid and/or payable for hospitalisation benefits, surgical benefits and other benefits under the medical savings account. The additional death benefit, top-up subsidy benefit, wellness joy benefit, sum insured, guaranteed cash value, terminal bonus (if any) and future premiums will not be affected by any payments of hospitalisation benefits, surgical benefits and other benefits under the medical savings account.

Medical Protection Products

See more


The above information is a brief summary of product features. For detailed product information, please read the product brochure and policy terms and conditions. The information in this website is for reference purposes only and should not be considered as an offer or solicitation for any of the products or investments mentioned herein. FWD expressly disclaims all liability for the use or interpretation by others of information contained in this website (including third party responsibility). You are advised to seek independent advice from appropriate professionals if you have any enquires with the related information.

24-hour Service Hotline 3123 3123 OR