health insurance

China retirement readiness falling: How to stay on track

China retirement readiness falling: How to stay on track

Retirement is something that needs to be on the minds of every adult, not just those who are nearing their golden years. In fact, planning ahead for three decades or greater is just what the doctor ordered when it comes to ensuring that your financial future is healthy and bright. However, for those in the Middle Kingdom, there has been bad news recently regarding China retirement readiness. Here, Pacific Prime China examines the news and its implications for future China retirees, as well as the areas you should focus on when considering your own personal retirement plans.

China retirement readiness falling

Tsinghua University has released an updated index on retirement readiness that shows China’s rating falling from 6.51 out of 10 in 2015 to 6.0 in 2016. Similarly, in 2015 20% of people reported that they felt they were well prepared for retirement, which dropped to 15.3% of people in 2016. This index takes many factors into account in order to come up with this number, including people’s retirement plans, preparations and expectations. Additional factors include current retirement savings, knowledge of financial issues and financial planning, and awareness of retirement responsibilities.

So what is the reason that China retirement readiness is taking a step backward? There are many factors contributing to this trend, but perhaps the biggest and most obvious general reason is that the Chinese economy and stock market have not been doing so well as of late. Cultural feelings about personal responsibility also seem to be a factor, as only 9% of Chinese citizens feel that retirement financing should fall solely on them. Neighboring territories in Asia, including South Korea, Singapore and Hong Kong, see this number come to 40% of their respective citizenries. Meanwhile, 63% of citizens believe that the onus of China retirement readiness should fall to the government. This number also sits at 40% in the other territories mentioned.

These feelings may be mirroring the current state of retirement savings in China, where the major vehicles for saving is a government run pension plan. However, there are also voluntary savings plans participated in by both employees and employers, as well as private savings plans and commercial retirement savings plans. The latter products are of negligible popularity in China at the moment, but the Chinese government is promoting such commercial savings vehicles to try to offset providing for an aging population.

Savings and investment

So how should one go about organizing their retirement savings? One of the best ways for people who already have a significant amount of savings is to invest their money. Utilizing capital to create capital is a great way to build up a nest egg and ensure that you can maintain a certain quality of living well into your golden years. Once you have your investments set, and factor in other sources of income like government subsidies for the elderly that you will be eligible, you can create a retirement budget and see if you will have enough money to achieve your desired lifestyle and China retirement readiness goals. Of course, you are going to want to have extra savings available each year so that you can address unexpected costs that arise.

Health insurance

Any retirement planning should start not only with an overview of your financial health, but also your physical health. After all, planning for the future is not strictly about dollars and cents, but also being healthy enough to enjoy your hard earned nest egg. For this reason, factoring in the cost of your future healthcare is important. Of course, one of the best ways to addressing these costs is to make sure that you have a comprehensive health insurance plan in place to avoid the costs that can come along with the major ailments that tend to occur more commonly later in life, such as cancer, stroke, heart disease, Parkinson’s disease, Alzheimer’s, etc.

When you are planning your medical insurance there are some common exclusions that come up time and again that you should be aware of. Namely, these are maximum age limits and pre-existing conditions.

Maximum age limits

Many insurers impose maximum age limits on their policies. This is because as people age, insurance underwriters have to consider if the medical costs of the average individual or a certain age will be greater than the premiums that the individual would pay the insurer. An insurance company cannot operate running on a loss, so they institute maximum age limits to avoid insuring the people that are most at risk of costly medical conditions. Generally this limit tops out at 70 years of age, although some plans go as high as 80. Still yet, there are plans available out there with no maximum age limit on them. As with health insurance at any age, though, the riskier a person is to insure, the higher their premiums are likely to be, so people of advanced age will likely have to pay a hefty cost to remain insured. This can make planning ahead for inflating insurance costs somewhat daunting.

Pre-existing conditions

Another risk factor that insurers are always on the look-out for is pre-existing conditions. This is simply when you have an ongoing medical condition that was present before you obtained your current health insurance policy. In most cases, where not prohibited by law, a private health insurance plan will exclude coverage for pre-existing conditions. This means that, while an insurance policy will provide benefits for many illnesses, the specific pre-existing conditions will not be eligible to be covered. Sometimes pre-existing conditions can be covered after the ailment in question has not occurred for a particular period of time – usually a number of years.

To ensure that you never get stuck with having excluded pre-existing conditions, you can simply obtain a policy with a particular insurer, and maintain continuous coverage for as long as possible. However, this can limit your choice of insurance provider. If you develop a condition while on an insurance plan, you will be disincentivized from switching providers, because a new insurer is likely to count the condition as pre-existing.

Life insurance

While it won’t necessarily help you enjoy your retirement, when it comes to planning for the end of your life, life insurance is a must to make sure that your family is well taken care of after your passing.

Other similar insurances to ask your insurance agent about that can help in dire circumstances include critical illness insurance, personal accident insurance, permanent disability insurance and accidental death and dismemberment insurance.

While we will leave the savings and investment to the financial advisers of the world, Pacific Prime China can certainly help those that need assistance in obtaining comprehensive insurance to address medical concerns, as well as avoid burdening their families with financial hardship following a hospitalization or death. Contact us today to be put in touch with a knowledgeable insurance advisor that can answer any questions you may have about China retirement readiness, and provide you with free insurance plan comparisons and price quotes. As a broker we compare prices from a number of the world’s best insurers; saving you the trouble of tracking down multiple quotes from multiple sources.

Posted by Travis Jones in General Insurance, News
Maternity Insurance in China: Can you buy when you’re already pregnant?

Maternity Insurance in China: Can you buy when you’re already pregnant?

Mothers-to-be have so much to think about and plan for with regards to the arrival of their new bundle of joy. Baby showers, room decorations, picking the right colors for everything depending on if it will be a boy or a girl. These are the types of fun things that people prefer to focus on when imagining their new family unit. What we don’t like to think about are the unpleasant thoughts of what could go wrong during pregnancy, labor and delivery. This is a sad fact, as planning ahead is imperative if you want to make sure that your new baby is completely covered by medical insurance no matter what happens. Here, Pacific Prime China examines how you can make sure your newborn is covered by maternity insurance in China.

What is Maternity Insurance and what does it cover?

Maternity Insurance in China is a separate type of coverage from what normally comes with health insurance coverage. This is because it is specially designed to address the costs associated with the development and birth of a new baby. Since a certain amount of cost is all but guaranteed should a woman become pregnant, as opposed to normal health insurance, in which some people may not get sick while insured, these plans can be a bit pricey and come with restrictions, perhaps the biggest of which are waiting periods, which we will address below.

As far as specific benefits provided by Maternity Insurance, after conception it includes benefits for pre-natal care, which can include medical consultations, regular checkups, ultrasounds, blood and urine tests, birth defect screenings and more. Then, once your bun has been in the oven long enough, Maternity Insurance will pay for the costs of labor and delivery, as well as costs related to the treatment of any complications at birth for both mother and child. It should be noted here that Maternity Insurance provides benefits regardless of your baby being born naturally or via caesarian section.

Beyond these items which are normally covered by Maternity Insurance, plans can also provide benefits for fertility treatment (including In-Vitro Fertility treatment), and costs related to treatment of congenital birth defects.

Why obtain Maternity Insurance in China?

Generally speaking, what level of insurance coverage would parents want when it comes to the birth of their new child? The best, of course! However, without Maternity Insurance, your options for affordable labor and delivery can be limited. This is because the best healthcare provided in China is found in private hospitals, which are a great deal more expensive than what you can expect to pay at public facilities. In fact, you can pay as much as RMB 100,000 for a maternity delivery package in a Chinese public hospital in a city like Shanghai.

Beyond just the price and level of care, there are other considerations that expatriates living in China should account for. One of the largest among these is the potential language barrier. If you are not fluent in Mandarin, then you may have trouble communicating with staff at public hospitals in China, which could be a source of great tension and worry if things seem to go the slightest bit wrong. At private hospitals in China, there are internationally trained doctors and finding one that speaks your language should not be too much trouble. This is all the more reason to ensure that you are free to attend a private hospital.

Waiting periods

A waiting period is a specific amount of time that must pass following the start of an insurance policy before a claim can be made against it. While most of the time waiting periods are not a hugely significant amount of time, when it comes to Maternity Insurance in China, they can be quite lengthy, and make all the difference in the world as to whether your pregnancy, labor and delivery will be covered or not. This is because many insurance companies will make their members possess maternity insurance for 12 months before it can be claimed against.

Now, you may be doing the math and saying, “Wait a minute. That means that if I get Maternity Insurance just before I get pregnant, I won’t have any coverage for my pregnancy.” That’s right. Not only is it far too late to have the lab tests, doctors visits, labor and delivery covered after a child has already been conceived, even if you won’t be pregnant for a month Maternity Insurance is almost certainly likely to not pay out. While there are plans available with waiting periods of only 10 months, this is likely the shortest you will find on the market. And even with a 10 month waiting period, you would want to avoid getting pregnant one month after obtaining such a plan because pre-mature births do happen, and you could miss out on covering birthing costs if the baby comes early.

What to do if it’s too late for maternity coverage

In the event that you are pregnant and do not have a Maternity Insurance plan in place, your options are certainly more limited, but there are still steps you can take to protect your baby as much as possible. Specifically, obtaining a newborn health insurance policy would be an excellent idea.  While this type of insurance does not address costs associated specifically with pregnancy, labor, delivery, or complications that occur prior to birth, after your baby arrives it can be invaluable. This is because, even after getting through the entire birthing process, a newborn is still quite vulnerable to a whole host of diseases that can be acquired almost immediately once he or she is out in the open.

The moral of the story: Plan ahead!

Obviously, if you want to get Maternity Insurance in China, you are going to need to overcome the waiting periods attached to most plans. That means that you need to have a plan in place well ahead of when you plan to conceive in order to be covered through the duration of your pregnancy – up to a year in advance of conception! For this reason, communicate openly with your partner about the timing of your next baby, and get your Maternity Insurance plan now and not when it’s too late.

If you have any questions about the information presented above, or when to secure maternity insurance before it is too late, contact the knowledgeable insurance experts at Pacific Prime China. Our agents are standing by to not only provide you with comparisons of insurance plans offered by China’s best insurers, but also give you a free price quote.

Posted by Travis Jones in Health Insurance, Maternity Insurance
Pacific Prime China is now on WeChat!

Pacific Prime China is now on WeChat!

Pacific Prime China is excited to announce the launch of our very own portal on popular Chinese messaging platform WeChat – a welcome new addition to our current repertoire of social media accounts already on Facebook, and LinkedIn. Joining an active user base of 846 million, the official Pacific Prime China WeChat account now offers a whole host of exciting new features exclusive to our followers. To avail these perks, simply follow us on WeChat (WeChat ID: PacificPrime) today!

Pacific Prime China meets Chinese market trends

In joining the ubiquitous WeChat platform, Pacific Prime China taps into a whole new audience of avid users – more than 90% of WeChat users go on the messaging app every day, and over 50% of users use WeChat more than 1 hour daily! By keeping up-to-date with the latest market trends in China, Pacific Prime China joins in with 560,000 other official company accounts on the most popular online community channel in China.

With a current active user base that is hiking its way up to the 1 billion user mark, WeChat has far surpassed Twitter’s 317 million users and is steadily catching up with Facebook’s 1.79 billion active users. Interestingly, corporate workers form the largest user group on WeChat, making up 40.4% of total users.

More than just a messaging platform

Pacific Prime China sees enormous potential in finding new ways of personalizing our services to existing and new clients on WeChat, especially when looking at the different ways that users are currently engaging with the platform. For example, not only are people communicating via chat, but they are also engaging on its social media platform “Moments” with friends and companies – a significant 61.4% of users go onto WeChat Moments when they open the app.

Another popular feature is WeChat Payment, which links WeChat with the user’s credit card. There are now 200 million users connected to WeChat Payments, and this highly availed feature has even seen over 8 billion “red envelopes” sent over WeChat during Chinese New Year in 2016!

Key features offered in new Pacific Prime China WeChat portal

Here are a key few of the many exciting new features that you can expect from the new Pacific Prime China WeChat portal:

  • Claims processing: Existing clients of Pacific Prime China can now access their policy details, easily process claims, and also change their policy information.
  • Assisting new clients: Our WeChat portal allows us to assist our new clients with regards to securing their new policies
  • Access to a dedicated service team: We now have a dedicated team servicing our WeChat account, helping you with any questions you may have.
  • Keeping you informed: Followers will be able to access exclusive blog articles so that they can stay up-to-date on the latest, most important market information relevant to the insurance industry, covering topics related to expat health insurance, general insurance, health trends, and many more.

Don’t forget to follow us!

To access the exciting new features now available on Pacific Prime China’s latest portal, be sure to follow us via our WeChat ID: PacificPrime, or by scanning the QR code below:

Pacific Prime China WeChat

 

Interested in learning more about our WeChat portal or the plans that we offer? Contact us today and our team of insurance advisors will be more than happy to have a chat.

Posted by Jess in General Insurance, News
5 tips for getting the most out of your health checkup in China

5 tips for getting the most out of your health checkup in China

The importance of maintaining good health continues to take central precedence in the Chinese government’s reforms, and this has been exemplified in the “Healthy China 2030” blueprint released in October, which sets out to improve health literacy in the country. As reported by Xinhua News, Premier Li Keqiang has announced in the Ninth Global Conference on Health Promotion that the current average life expectancy in China is 76.3, beating many middle and high income countries.

With the Healthy China initiative, China hopes to raise the average life expectancy to 79 by 2030. In ensuring that this ambitious goal is reached, the Chinese government has been distributing brochures offering health advice to the public by advocating healthy habits, chief among them being the importance of regular health checkups.

As the age-old saying goes, “prevention is better than cure”. Undergoing regular checkups is important in helping you identify any health concerns you may have before they develop into long term chronic illnesses. With new year’s just around the corner, it’s time to include regular medical exams in your resolutions! This article by Pacific Prime China reveals how to get the most out of your health checkup.

Be prepared for your checkup

To get the most out of your checkup, there are a few things you can do before your appointment so that your doctor can better address any specific areas of concern you may have:

  • Notify your clinic/ doctor about problem areas that you’re concerned about before your appointment. By doing so, your doctor will be better prepared for your checkup beforehand and can then adjust the duration of your appointment accordingly.
  • Prepare previous health records if you’re visiting the clinic for the first time. This can help your doctor by providing key insights on your medical history.
  • Be prepared to provide information on your family’s health history. Do certain diseases run in your family? It may be a good idea to write these down, especially if it’s your first time visiting a particular clinic.
  • Think about questions you may have regarding your body. Have you noticed anything unusual, like new moles or lumps on your body? It’s worth jotting these down.
  • Prepare a list of medications that you’ve been taking – it’s important to let your doctor know what medications you are on, including non-prescription drugs like supplements. This may help reduce the chances of negative interactions between any newly introduced medications and your current medication.

Don’t forget cancer screenings

With regular cancer screenings, any abnormal cells that may turn into cancer will be detected. It may be daunting to undergo these screenings, but detecting any abnormalities as early as possible can really save your life. Here are some of the most common types of cancer screenings:

  • Mammograms to detect breast cancer.
  • Pap test (for women) to identify abnormal cells that may turn into cervical cancer.
  • Screening tests for colon cancer – this is especially important for adults above 50 years old, people with a family history of colon cancer, and people with inflammatory bowel disease.
  • Low-dose computed tomography scans to detect lung cancer. This is especially recommended for people with a history of heavy smoking.

Don’t hesitate to address any embarrassing symptoms

Some people prefer to avoid talking about embarrassing symptoms or illnesses as they consider these a social taboo, but it’s important to be as honest as possible. Doctors deal with and talk about these problem areas every day and are there to provide their professional help. If you’re feeling too uncomfortable, it might help to invite a close friend or family member to accompany you to your appointment.

Mental health is also important

With 180 million people in China suffering from psychiatric disorders, there’s a pressing need to address mental health issues in this country. If you’ve been feeling particularly stressed or unhappy, don’t forget to mention this during your checkup, as your doctor can help refer you to a relevant professional so that, if appropriate, you can proceed with therapy and other forms of treatment.

Make sure your health insurance plan covers checkups

Checkups can be expensive (especially in private and international hospitals), which is why it’s important to check if this is covered by your health insurance plan. Some plans may only cover a percentage of the cost of the checkup, and other plans may cover only basic checkups. Another thing to be aware of is your plan’s preferred network of providers. If you’re going to a clinic that is not listed under your plan’s in-network, you will likely face issues when filing claims.

If you’re unsure of what exactly is covered by your plan or would like some further information, feel free to contact us today.

Posted by Jess in Expat Health Insurance, Health Insurance
Tips for reducing health risks from air pollution in China

Tips for reducing health risks from air pollution in China

As you are probably aware, the harmful effects of air pollution in major Chinese cities has been a cause of ongoing concern for the population’s health and wellbeing. One of the main reasons for such high pollution levels is the observably poor compliance to environmental standards at industrial plants, and with China producing the highest total industrial output globally, harmful levels of PM2.5 pollutant matter (particles small enough to penetrate the lungs) are continuously emitted into the atmosphere, day in and day out.

World news headlines and social media sites continue to see the ubiquitous presence of China’s health pollution problem, and rightly so, as it tops the world in most types of air pollution due to the high presence of sulphur dioxide, nitrogen oxides, and carbon emissions. By 2017, Beijing aims to reduce its annual levels of PM2.5 from its 2013 level of 89.5 micrograms per cubic meter to 60 micrograms per cubic meter – an ambitious aim that still seems nearly impossible considering the city’s current reduction rate, with a recorded level of 80.6 micrograms reported at the end of 2015.

Especially when considering the increased mortality and premature deaths linked to air pollutant exposure, there’s a pressing need for the Chinese government to implement pollution reduction measures, especially in its major cities. From a personal perspective, there are also a number of things you can do to reduce the health risks associated with air pollution, a key few of which are addressed in this article.

What are the health risks associated with air pollution?

A staggering 1.6 million deaths in China per year have been attributed to toxic air pollution, as air pollutants have been reportedly linked to a number of health risks. Certain groups of people are more susceptible to air pollution health risks than others, such as pregnant women, the elderly, young children, people with heart disease, and people with lung conditions.

According to Spare The Air, some of the health risks associated with exposure to heavy air pollution include:

  • Cardiovascular disease, e.g. stroke
  • Respiratory conditions, e.g. asthma
  • Loss of lung capacity
  • Reduced resistance to infections
  • There’s also an increased risk of lung cancer from prolonged exposure to air pollution

While there are groups of people that are particularly vulnerable to these health risks, even the healthiest of individuals may develop some of the symptoms common from pollution exposure, such as wheezing and dry throat. This is why it is important for anyone living in major cities within China to mitigate the health risks caused by air pollution.

Top tips for mitigating health risks from air pollution

The health risks mentioned above may seem scary, but there are a few things you can do to minimize them.

Stay indoors

One method of significantly reducing exposure to air pollutants is to stay indoors, especially during high air pollution days. To check air pollution levels in your area, be sure to follow government warnings and local news. It may also help to look at real-time China pollution maps (like this one).

Although air pollution particles do infiltrate indoors, its concentrations are typically much lower indoors than outdoors. To lower the infiltration of air pollution, an article in the Journal of Thoracic Disease suggests closing windows, as this action alone can effectively reduce air exchange rates by approximately 50%.

Consider buying an indoor air purifier

You may also want to buy an air cleaning device (e.g. a high efficiency particulate air (HEPA) filter) for your home, as this can help reduce the concentrations of air pollution and the levels of PM2.5 indoors. The rate at which pollutants are removed will depend on a range of factors such as the size of your home and the ventilation rate of your air purifier.

Try to stay away from heavily trafficked roads

If you’re going out for a jog or cycling around the city, it’s highly advised to stay away from heavily trafficked roads to avoid traffic-related air pollutants. These include particles from combustion engines, tire and vehicle wear, and road dust. If you have been walking near any major roadways, it’s a good idea to wash your clothes and take a shower after you get home to rid yourself of harmful fine particles.

Wear a protective mask

Sometimes, it’s hard to avoid being out during polluted days, especially when you have to commute to work. It might not look very fashionable, but wearing a protective mask or even a personal respirator can significantly help lower your exposure to air pollutants on urban streets, and can be especially beneficial for people who are more susceptible to health risks caused by air pollution.

Final advice

As revealed in this article, air pollution in China can really have a negative impact on your health, so it’s important to secure a private health insurance plan so that you are protected in the event that you require quality medical treatment from private or international hospitals. If you’ve got any questions on health plans, contact our team of experienced advisors today.

Posted by Jess in Health Insurance, Illness