Created: 21 September 2020
With the alarming statistics of Malaysians being diagnosed with critical illnesses (CI) such as diabetes, heart diseases, cancer and other non-communicable diseases, coupled with the sky-rocketing costs for treatment, buying a critical illness plan is more of a necessity these days, to provide a financial safety net when the unexpected happens.
Critical Illness insurance is designed to provide financial support when you are diagnosed with any of the covered critical illness stated in the policy. The financial support will usually be a lump sum cash payment based on the severity of your ailment or at which stage of illness you are at. Critical illness usually leaves devastating impacts to lives; with some no longer able to work and having to fork out huge sum of money to commute for frequent, long-term treatment and being able to afford medication.
CI plan is different from medical insurance in at that, the plan pays directly to you, whereas medical insurance pays the hospital where you seek for medical treatment or surgery.
Typically, CI plans do not provide coverage if detected in early stage and coverage ends upon a single claim made. However, there are certain types of CI plans that provide coverage for early stage and multiple claims.
The 36 critical illnesses stated in CI plans are of the most prevalent among Malaysians. Nevertheless, there are also plans that cover more or less than 36 CIs, based on different affordability range.
Also, for a more comprehensive coverage instead of just getting a standalone CI plan, you may want to consider purchasing an investment-linked insurance plan that covers death, total and permanent disability (TPD), medical and CI, to give you needed protection while gaining potential upsides from funds to grow your wealth.