Dear Mr. Tan,
Why do the insurance company change increases its premium each year, as I grow older. Why can't they charge the same premium throughout my life, like a life insurance policy?
REPLY
There are two big factors affecting the cost of medical care:
a) Age. As you grow older, you need more medical care
b) Escalation. As the years goes by, the cost of medical care increases due to technology, more demand and other factors.
It may be possible to charge a level premium to take care of age, but it still does not take care of the escalation of medical charges. Hence, it is not possible to fix a level premium.
Read this FAQ:
http://www.tankinlian.com/faq/shield.html
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