Private Health Insurance?

[RPG]

Not sure what to do here. I have been very lucky and have had company provided health insurance for myself and my family since 1996. This all stopped 3 years ago.

Made redundant in 2020, I purchased PHI at a group discount rate with VUMI. The discount is significant but there is only the one policy available under the group discount - and that is for global cover including USA and provides cover of up to US$ 5 million per insured per year. Self and wife pay a premium of US$2500 per year and daughter (age 7) gets the same cover free of charge to age 10. It is far more cover than we need as we spend 95% of our time in Malaysia where the government hospitals are free for us (but not of great quality) and the private hospitals are of excelklent quality and are 'relatively' cheap.

Our PHI premiums seem to be going up at around 10% a year.

A friend of ours recentl;y had complex surgery for stomach cancer in Malaysia requiring a lengthy stay in an excellent private hospital which included a week in intensive care. His total bill was US$ 50,000 which sounds a lot (it is a lot) but we were wondering about cancelling our PHI and putting the money we saved into a dedicated account and effectively becoming self insured. The math is fairly straightforward. Just 3 or 4 years without hospitalisation saves enough to fund an 'average' operation and 7 or 8 years would fund some thing way more serious. As an actuary friend of mine said 'If it takes US$ 5 million a year to keep me alive in Malaysia I think I would rather be dead!'

Has anyone with PHI thought about cancelling it and doing something similar?

[Palfy]

25 minutes ago, RPG said:

Not sure what to do here. I have been very lucky and have had company provided health insurance for myself and my family since 1996. This all stopped 3 years ago.

Made redundant in 2020, I purchased PHI at a group discount rate with VUMI. The discount is significant but there is only the one policy available under the group discount - and that is for global cover including USA and provides cover of up to US$ 5 million per insured per year. Self and wife pay a premium of US$2500 per year and daughter (age 7) gets the same cover free of charge to age 10. It is far more cover than we need as we spend 95% of our time in Malaysia where the government hospitals are free for us (but not of great quality) and the private hospitals are of excelklent quality and are 'relatively' cheap.

Our PHI premiums seem to be going up at around 10% a year.

A friend of ours recentl;y had complex surgery for stomach cancer in Malaysia requiring a lengthy stay in an excellent private hospital which included a week in intensive care. His total bill was US$ 50,000 which sounds a lot (it is a lot) but we were wondering about cancelling our PHI and putting the money we saved into a dedicated account and effectively becoming self insured. The math is fairly straightforward. Just 3 or 4 years without hospitalisation saves enough to fund an 'average' operation and 7 or 8 years would fund some thing way more serious. As an actuary friend of mine said 'If it takes US$ 5 million a year to keep me alive in Malaysia I think I would rather be dead!'

Has anyone with PHI thought about cancelling it and doing something similar?

I have had private health insurance for decades now not PHI but with Bupa, I've used it once and my wife three times I believe, thankfully nothing live changing for all of us, and the kids when they were eligible never had cause to use it thank god. 
I have thought many a time about cancelling more because if anything serious happened to either of us we would have the back up of a very good NHS, but it's a gamble and even though I do like a flutter now and then I wasn't quite prepared to gamble on our future health. 
My advice if I was in your situation would be to carry on paying for your medical health insurance if that is feasible, no one knows what the future holds and maybe if you were prepared to that gamble with your own health care are you prepared to take that gamble with your loved ones health care, big decision coming up mate hope you make the right one.

And I pay £4,200.00 a year, and my biggest fear for keeping it going is the big C word, it guarantees us the best consultant's and drugs money can buy with no quibble, or care authority saying that particular drug cost can not be justified so you're not getting it, even if proven it would make a difference. 

[Matt]

I think PHI is just an initialism, Palf.

RPG, hard to comment without knowing the situation in Malaysia. When I was in Switzerland, it was mandatory and cost me 20% of my post-tax income. But it covered everything except dentists (3 fillings cost me 1300chfs...).

In the UK I've got it through work for £35 a month plus "franchise" (I can only remember the French word, deductible?). Felt it was worth it to relieve a bit of stress on the local NHS since getting a GP appointment where I live is a lottery. 

Premiums will always go up after 60 I think, you're more of a risk for them. 

$2500 a year for 3 that keeps you covered seems reasonable I think, if you can afford it. You'd need to save for 20 years to save for a $50k operation based on what you've written. Personally I'd keep it with that information but without knowing the legal situation there, your budget etc it's hard to really give any advice. 

[Palfy]

10 hours ago, Matt said:

think PHI is just an initialism, Palf.

Of course it is Matt my bad