The financial burden of medical treatments, especially in private hospitals where costs for procedures like coronary bypass surgery can reach more than RM100,000, coupled with potential loss of income during recovery, can be overwhelming.

Critical illness insurance offers crucial financial support to cover medical expenses and maintain financial security during challenging times. This article will explore why this insurance is a must-have in Malaysia, its coverage, and how to select the appropriate plan.

What is Critical Illness Insurance

Critical illness insurance is an insurance product that provides a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses listed in the policy. This financial support is designed to help cover various costs associated with a critical illness, including medical expenses, living costs, and potential loss of income during recovery.

Common conditions covered often include major illnesses such as cancer, heart attack, stroke, and kidney failure. While the standard coverage in Malaysia often includes 36 critical illnesses, some insurers may offer plans covering a wider range. This payout gives the insured the flexibility to manage their financial needs during a challenging time.

Why Do You Need Critical Illness Insurance?

Given the potential financial and lifestyle disruptions caused by a critical illness, as discussed in the previous section, understanding the specific reasons why critical illness insurance is a crucial safeguard in Malaysia becomes paramount.

High medical costs
The cost of treating critical illnesses in Malaysia can be substantial. For instance, an estimate cancer treatment can reach up to RM395,000. A single PET scan can also reach up to RM3,000 per scan. These figures highlight the potential for high medical bills associated with critical illnesses.

Income protection

Many critical illnesses necessitate extended periods of recovery, often lasting between 6 to 12 months. During this time, individuals may be unable to work, leading to a significant loss of income. While recovering from a serious illness, the financial strain of maintaining daily expenses and managing ongoing financial obligations can be overwhelming. Critical illness insurance can provide a financial buffer to replace lost income during this crucial recovery phase.

Not covered fully by health insurance

While a medical card is essential for covering hospital stays, surgeries, and immediate medical treatments, it typically does not cover all the financial implications of a critical illness. Post-treatment expenses, rehabilitation costs, lifestyle adjustments, and loss of income are often not included in medical insurance policies. Critical illness insurance provides a lump sum payout that can be used to address these additional financial needs beyond direct medical bills.

Peace of mind

Facing a critical illness diagnosis is an incredibly stressful experience. A critical illness insurance policy provides a lump sum payout upon diagnosis, offering financial security during a challenging time. This financial support allows patients and their families to focus on recovery without the added burden of worrying about medical bills, living expenses, or loss of income. Knowing that there is a financial safety net in place can offer significant peace of mind.

What Does a Good Critical Illness Plan Cover?

A robust critical illness insurance plan offers comprehensive financial protection when you face a serious health challenge. It goes beyond basic coverage to provide meaningful support during a difficult time.

• Comprehensive protection: A good plan should offer coverage for a wide range of critical illnesses.
• Lump sum payout: This payout is not restricted to medical bills and can be used for various needs such as daily living expenses, loss of income during recovery, or making necessary lifestyle adjustments.
• Customisable coverage: Many plans offer flexibility in tailoring your coverage. Critical illness cover can sometimes be added as a rider to an existing life insurance or investment-linked policy, providing enhanced protection alongside your existing financial plan.

How to Choose the Right Critical Illness Plan

Choosing the right critical illness plan in Malaysia requires careful consideration of several factors to ensure it meets your individual needs and provides adequate financial protection.

• Look for broad coverage: Ensure the plan covers a comprehensive range of critical illnesses, as some policies can cover from a minimum of one illness up to 160, with the insurance industry generally providing coverage for 36.
• Check payout structure: Consider that critical illness insurance typically provides a lump sum payout upon diagnosis of a covered condition, which can be used for various expenses beyond just medical bills.
• Compare premium affordability: Balance your budget with the level of coverage and benefits offered, understanding that a higher sum assured will generally result in a higher premium.
• Consider the waiting period: Be aware of the waiting period after the policy commence, before you can make a claim, which is typically 30 days for the standard critical illnesses but can be longer for special conditions.

Conclusion

Critical illness insurance is vital in Malaysia to provide a lump sum for financial security upon diagnosis of serious conditions. It helps manage medical bills and living costs. Safeguard your future with CriticalEase—guaranteed acceptance, lump sum payout, and 38 critical illnesses covered. Add it to ProtectEase for all-in-one protection that grows with you. Speak to an AmMetLife agent today to get started.

All or any of the benefits stated above are subject to terms and conditions. The above articles are intended for reference and informational purposes only. AmMetLife does not accept any responsibility for loss which may arise from reliance on information contained in the article.

References:

1. https://ringgitplus.com/en/health-insurance/critical-illness/
2. https://bjak.my/blog/what-is-critical-illness-insurance-how-will-it-work-for-me/
3. https://www.touchngo.com.my/blog/medical-card-vs-critical-illness-insurance-a-malaysian-guide-or-gofinance/
4. https://en.wikipedia.org/wiki/Critical_illness_insurance