Updated: Nov 29, 2021
One out of four Malaysian is at the risk of dying from non-communicable diseases before the age of 70. According to a Health and Morbidity Survey, 47.7% of Malaysians have high cholesterol levels while 17.7% are deemed obese. Besides that, heart-related diseases have been found to be the leading cause of death among Malaysians.
At the same time, the growing health problems in millennials and the rising number of critical illnesses are reported every year including cancer, heart attack, stroke, and kidney failure. Looking at the facts, you and I know that critical illnesses like heart disease or cancer can cause a huge financial burden on the person not just about medical costs but also the family expenses. But no worries, there is a solution for this.
Do you have friends who are insurance agents? Of course, Yes. And they have probably asked you “Do you have any insurance policy?” And you’re answer is? “Of course, I have my insurance coverage. Got a lot some-more….” To be honest, most of us have basics coverage, like medical insurance, life coverage, and total permanent disability (TPD) coverage. And maybe a little bit on Critical Illness Coverage.
And today, most of us are still making medical insurance the top priority. However, the truth is more than 90% of Malaysians do not have enough Critical Illness coverage. There is always this big misconception is that we already have medical insurance and we do not need Critical Illness Coverage. We always think both coverages are the same. But actually, it is different. Medical insurance is used to cover the cost of hospitalisation, doctor’s fees, surgery, and medication. In other words, it goes to the hospital and doctor. But Critical Illness insurance is payable to YOU. YES!! YOU..
The lump-sum payout from the critical illness insurance help covers the cost of care and treatment, expenses such as additional equipment, traveling expenses and medicinal supplement and even to pay off any debts and also to cover alternative treatment which does not cover by medical insurance. At times, a critical illness can result in a loss of income either temporarily or permanently. Some people use this lump sum payout to help fund home care, mortgage, or basic living expenses; keeping the entire household afloat.
Ok. So how much critical illness coverage should we get? It is recommended that critical illness coverage is equal to 5 years of our annual income. For example, annual income is RM80,000 then it is equal to RM400,000 critical illness coverage. Very simple calculation. But if you cannot afford such a huge coverage, you can start with 2.5 years of your annual income first. Which is RM200k or RM300k for example. And You can upgrade along the way as your income grows.
And do you know more than 90% of Malaysian have less than RM100,000 in critical illness coverage? And most are below RM50,000 sum assured. Individuals diagnosed with a critical illness can face financial hardships, even when they have comprehensive insurance coverage.
We should ask ourselves,
“Is my critical illness coverage is enough? I have RM1.5 million in medical insurance. How about coverage for my income?”
“How can I maintain my current living standard in case I diagnose with a critical illness?”
Spent a little bit of your time today and think about these questions. You can make a difference in your life with good critical illness coverage which became a safety net for you during times of need. That’s all from me. My name is Moses, from The Insurance Guys. Thanks, and have a nice day.