With each passing day, more and more Malaysians are suffering from cardiovascular problems. A total of 18,267 people in Malaysia died from ischaemic heart disease, averaging 50 deaths a day in 2019. Most deaths are due to either negligence of early signs or lack of funds to bear medical expenses. Therefore, critical illness insurance is a cheap and secure way to ensure your protection from any unforeseeable circumstances.
This article will walk you through everything you need to know about purchasing a critical illness insurance and preventing yourself from being yet another statistic.
What exactly does critical illness mean?
In layman’s terms, critical illness could be an umbrella term for any chronic illness. However, in terms of Insurance, there’s a specific definition of what falls under it. Critical illness essentially means a fatal condition that puts an individual’s life at risk. This illness could either be naturally acquired or clinically perpetuated. Under critical illness insurance, most policies usually provide coverage for 36 critical illnesses, but there is a total of 42 critical illnesses aggregated such as follows:
1) Alzheimer’s disease / severe dementia
2) Angioplasty and other invasive treatments for coronary artery disease
3) Apallic syndrome
4) Bacterial meningitis
5) Benign brain tumour
7) Brain surgery
10) Chronic aplastic anaemia
12) Coronary artery by-pass surgery
15) End-stage liver failure
16) End-stage lung disease
17) Full blown AIDS
18) Fulminant viral hepatitis
19) Heart attack
20) Heart-valve surgery
21) HIV infection due to blood transfusion
22) Kidney failure
23) Loss of independent existence
24) Loss of limbs
25) Loss of speech
26) Major head trauma
27) Major organ / bone marrow transplant
28) Medullary cystic disease
29) Motor neuron disease
30) Multiple sclerosis
31) Muscular dystrophy
32) Occupationally acquired HIV infection
33) Paralysis of limbs
36) Primary pulmonary arterial hypertension
37) Serious coronary artery disease
39) Surgery to aorta
40) Systemic lupus erythematosus with severe kidney complications
41) Terminal illness
42) Third degree burns
How do I know that I’m critically ill?
Better safe than sorry!
When it comes to these types of chronic diseases, it’s important to watch out for initial signs and symptoms and take early action before it’s too late. If you believe you have any symptoms of the aforementioned diseases, consult with a medical professional immediately.
The best part about owning a critical illness insurance is that unlike life and medical insurance , critical illness insurance pays you out in lump sum upon claim so that you can focus on your treatment and recovery.
Features of a critical illness insurance plan
This is an insurance plan that provides financial coverage against all medical costs and expenses that you might have to bear after you are diagnosed with a critical illness.
All critical illness insurance plans cover the end-stage level of illness (see list of 42 critical illnesses above). The basic coverage can be as low as 5 to as high as 150 critical illnesses, depending on the underwriter’s discretion.
There are products offering additional coverage such as personal accidents, maternity covers, cosmetic surgery and many more. These can be accessed through the policy’s add on options.
- The biggest benefit of this policy is that it can protect you from otherwise devastating financial repercussions in the event of a serious disease. Critical ailments not only affect the person physically; it also has a major impact on the finances of the family. A critical insurance pays a lump sum amount which can be used to cover medical and other household expenses.
- Critical illness insurance can assist your recovery as you wouldn’t have to worry about financial expenses and only focus on your healing and treatment.
- Under certain critical illness insurance plans, a fixed sum is paid on the diagnosis of a critical ailment, irrespective of whether the treatment takes place in Malaysia or abroad. It means the policy can help you if you want to go overseas for further medical treatment.
- There are also fringe benefits that you can gain depending upon your insurance policy such as claim Bonus of 10% up to 5 years, Second Medical Opinion etc.
Features are the provisions of a critical illness plan. These are the crucial provisions that you must pay attention to when buying a critical illness insurance plan:
- Waiting period
This is a period you must observe after commencement of the policy. This means that you will not be allowed to make a claim in this period.
The waiting period solely depends upon the Insurance that you choose. PolicyStreet offers you quotations from a variety of Insurers, and you can explore a wide range of features, ranging from a standard 30-day waiting period to even zero waiting period after policy commencement and in between claims.
- Premium rate
Depending on your critical illness insurance plan as well as the number of illnesses you select to be covered for, the premium rate is either guaranteed or non-guaranteed.
For a term plan, the premium is guaranteed at policy entry age and will increase according to the relevant age band.
However, the insurer has the right to revise your premium rate as they deem fit and must notify you within 90 days of revision.
- Types of critical illness insurance plan
Just like life insurance, critical illness insurance plans also follow a “no one size fits all” criteria and your preferred choice of this insurance depends upon the financial planning best suited to meet your needs.
Essentially, there are 2 variants of critical illness insurance:
1) Term policy
This is the most traditional insurance plan that is claimable upon diagnosis of any one of the critical illnesses. The coverage term is usually shorter and will end once the claim is made.
2) Investment-linked policy
Upon diagnosis of any one of the critical illnesses, you will be paid a lump sum under the rider, linked to your Investment insurance while the main policy remains in force.
Over time, the value of the policy will grow as it is used for investments and to cover insurance costs.
How many times can you claim under a critical illness insurance plan?
The answer to this question solely depends upon the type of Insurance that you opt for. The customer assistance team at PolicyStreet can guide you and help you navigate whether you want to set up a single claim, multiple claims or multiple claims of the same illness plan. Each is subject to varying costs, depending upon the plan that you select.
PolicyStreet is a financial advisory service that offers the best types of insurance at the lowest cost. It aims to make your insurance purchase experience simple, easy and affordable. With a one stop insuretech platform that caters to all of your insurance related needs, it is sure to provide you with unbiased advice on the best critical illness insurance to opt for!
What are you waiting for? Go visit www.policystreet.com and protect yourself and your family against any of life’s uncertainties today!