Do You Need One Or Both?
Difference between Medical Insurance and Critical Illness Insurance
Fundamental a medical insurance policy protects you in the event of a medical emergency which requires hospitalization, by covering for the cost of treatment and hospitalization.
On the other hand, a critical illness insurance policy provides financial aid in the form of a lump sum payout, in the event you are diagnosed with a critical illness.
Well, everyone needs medical insurance, but not everyone needs critical illness protection. Is this statement true or false?
Think About it:
If one day he/she suddenly has a stroke, he/she would be hospitalized immediately, and so unlucky his/her post-stroke paralysis.
What do this means?
He/she lost the ability to earn money, and probably would take 3 to 5 years in order to resume work.
Oh God!! I Still have plenty of loan needs to be paid or elsewhere should I stay with my family?
So what is the solution, if I did not purchase Critical Illness?
1. Sell Property (If you have one)
Question: But how long does it takes?
Answer: It Could take up to Years To Make a Sell
2. Borrow from relative, friends, etc
Question: Let say your annual income is RM 60,000 x 5 Years No Income, so it will be RM 300,000 in order for you to sustain 5 years. Will they able to? Alright we assume they will.
Answer: What has been borrow need to be return right?
3. Existing Saving
Question: Did save with a purpose of better retirement/greater lifestyle/travel/fulfill your dream?
Answer: Maybe you need to restart your life and career from here onwards
4. Request of Donation
Question: How long did this process need to be done?
Answer: Back to basic, how many times have you been donate in your life? Probably a lot, but what other thinks? Probably another scam.
5. Withdraw Investment
Question: Let’s say you invest RM 1,000,000 with a great interest of 10%, not bad right?
Answer: So have you invest greater than RM300, 000? If yes congratulation, but end of the day you need to find that lump sum money to re-invest again.
The bottom Line
Critical illness plan provided a safety net for everyone for financial hardship due to critical illness.
Most people could benefit from a critical illness policy, it’s a matter of weighing up the monthly cost against the benefits of a payout. Anyone who age 18 above or your family depend heavily/moderation on your salary, it could be exactly the kind of protection you need.
If you have no financial commitments or dependents, critical illness insurance may not be for you.
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