Tuesday, December 24, 2013

A review on Critical Illness Insurance Review in Malaysia

A review on Critical Illness Insurance Review in Malaysia

Are you worried that after all your years of hard work, your savings may just be totally depleted with one heart surgery? While prevention is better than cure, the topic of health and disease prevention will be covered in another post. Most people may think of insurance as a ‘cash outflow’. If you think that the cash outflow of paying to cover the annual premium is high, what about the cash outflow of a critical illness?

What we would like to share in this post is on the benefit of critical illness insurance and the coverage. Critical care insurance is a type of medical insurance that provides protection when a major illness occurs. Some may not agree, but to us; the critical illness insurance product is suitable for the middle-income group. The rich don’t need it and the poor can’t afford it. So, if you think that you are in this category, this is one solution that you have to seriously consider in order to reduce the financial impact on you or your family members. For the rich, they could consider this as a form of risk diversification.

Some may even say that the list of critical illnesses is rare and the probability of getting it is low. Let us prove you wrong. Check out the statistics by the Ministry of Health Malaysia: 


If you are not clear of the definition of critical illness, check out the definition from the Life Insurance Association of Malaysia:


If you need more information, you could just Google those medical terms. There is no need for us to reinvent the wheel here.

There are 3 types of critical illness insurance in Malaysia:

a) Investment-linked policy: The critical illness cover is added on as an additional rider. However, the premium that you need to pay gets more expensive as you get older.

b) Whole‐life with living benefits policy: Unlike a Death or Total Permanent Disability claim, the fund from this policy claim would be used by the policyholder to recover from the illness and to help cover for the medical expenses. Owning a whole‐life critical illness policy can be more costly than an investment‐linked policy with an attached critical illness rider benefit. This is simply because the insurance charges for critical illness coverage in a whole‐life policy is fixed, hence making the premium fixed for life. This also means that you don’t have to worry about any premium increment as you get older.

c) Term Policy: Term critical illness coverage is usually just that; only claimable in the event of a critical illness diagnosis. They don’t cover for death or disabilities, which is why they are so affordable. However, the affordability of a term policy also comes with a price: the renewal of the product is not guaranteed.

Source: Meshio.com

We have also compiled a list of Life Insurance Companies (Malaysia) for you to do your research on critical illness insurance:

Allianz Life Insurance Malaysia Bhd
AmLife Insurance Bhd
American International Assurance Bhd
AXA AFFIN Life Insurance Bhd
CIMB Aviva Assurance Bhd
Etiqa Insurance Bhd
Great Eastern Life Assurance (Malaysia) Bhd
Hannover Life Re, Malaysian Branch
Hong Leong Assurance Bhd
Malaysian Assurance Alliance Bhd
• Malaysian Life Reinsurance Group Bhd
Manulife Insurance Bhd
MCIS ZURICH Insurance Bhd
Prudential Assurance Malaysia Bhd
Tokio Marine Life Insurance Malaysia Bhd
Uni.Asia Life Assurance Bhd

The next step is to call your trusted insurance agent to provide you with a product that suits you and your family. All the Best in your financial protection goals!

Related terms:

Critical illness insurance, medical insurance, health benefit, cover, coverage, life policy


Foxerlow said...
This comment has been removed by a blog administrator.
Angela Lee said...

A critical illness policy is one of the most popular policy. But the rich don’t need it and the poor can’t afford it. Thank for sharing