What is Critical Illness (CI) and why do I need it? Isn’t it already covered in my medical insurance?
What is Critical Illness (CI) insurance?
Critical Illness insurance will pay you (in part or in full; depending on severity of illness) when you are diagnosed with any of these 36 Critical Illnesses:
- Cancer
- Heart Attack
- Stroke
- Coronary Artery By-Pass Surgery
- Kidney Failure
- Other Serious Coronary Artery Disease
- Brain Surgery
- Fulminant Viral Hepatitis
- Major Organ / Bone Marrow Transplant
- Loss of Speech
- Alzheimer’s Disease / Irreversible Organic Degenerative Brain Disorders
- Major Burns
- Coma
- Paralysis / Paraplegia
- Multiple Sclerosis
- Parkinson’s Disease
- End Stage Liver Failure (Chronic Liver Disease)
- End Stage Lung Disease (Chronic Lung Disease)
- Major Head Trauma
- Chronic Aplastic Anemia
- Primary Pulmonary Arterial Hypertension
- Blindness
- Heart Valve Replacement
- Loss of Hearing / Deafness
- Surgery to Aorta
- Severe Cardiomyopathy
- Motor Neuron Disease
- HIV Due to Blood Transfusion
- Bacterial Meningitis
- Loss of Independent Existence
- Systematic Lupus Erythematosus (SLE) With Lupus Nephritis
- Full Blown AIDS
- Muscular Dystrophy
- Benign Brain Tumor
- Encephalitis
- Angioplasty and Other Invasive Treatments for Major Coronary Artery Disease
Why do I need Critical Illness (CI) coverage?
Here’s the main difference between medical insurance and critical illness insurance:
Medical insurance coverage is used to cover hospitalization, doctor’s fees, surgery & medication costs. The money goes to the hospital & doctor.
On the other hand, the money from CI insurance is paid to YOU.
Imagine a person who recently had a serious stroke. He needs time to recover and he is unable to work. At the same time, his living expenses – housing loan, child/parent support, food, utility bills, car loans – are still running. Some Malaysians may look for alternative treatments outside of the hospital, go try out some supplements, or special medicine to cure the illness or to regain their strength (These aren’t covered in your medical insurance!).
Other types of critical illnesses may need months or even years to recover from! (The Malaysian labor law only allows 60 days of hospitalization leave.)
Getting CI insurance means you get the much needed funds to pay for your expenses and seek other types of healing while recovering from CI.
It would also help if you had to quit your job, because it may take even longer to find employment again.
Thus your money from CI is important as:
- Income replacement; to maintain your lifestyle and pay your expenses while you are recovering.
- Money available to seek alternative/additional treatment (which would most likely require a big sum and could be outside Malaysia)
Check out What You Need to Know For Life and Medical Insurance Policy too
How much CI coverage is enough?
It would be best to get coverage of at least 5 years of your annual income.
Example:
Salary: RM5,000
Annual income: RM60,000
Recommended: 5 years annual income equivalent: RM300,000
How long before I can make a CI claim?
The waiting period is usually 60 days from the date of the policy coverage for critical illness.
The severity of the critical illness (early/intermediate/advanced stage) may also affect when you can claim, depending on your insurance policy.
How much is the cost for Critical Illness Coverage?
CI coverage is affordable especially if purchased at a young age (40s & below). The cost may vary depending on the type of plan and features (investment linked/traditional/term). Critical Illness coverage comes with Life coverage & Total and Permanent Disability coverage.
We would recommend getting the plan (assume RM100k coverage) with an estimated cost of:
- Age 20: <1200 per year
- Age 30: <1200 per year
- Age 40: <2000 per year
- Age 45: <2000 per year
- Age 50: <2400 per year
These figures are subject to certain terms and may vary drastically depending on type of plan, insurance company, and other factors.
