Critical Illness Insurance is the insurance that will pay the insured person a lump sum benefit if he/she is diagnosedÂ with one of the covered 36 critical illnesses.
It is different from the medical insurance or hospital and surgical insurance as it is a lump sum payment to you and you can choose on how to spend the money received from the critical illness policy. Note, hospitalisation and surgical insurance will take care of the medical expenses while being hospitalised at the hospital other hospital service charges and it is paid directly to the hospital if the medical plan is the medical card and cashless admission program.
For critical illness insurance, you control how you want to use the funds – from using it to go for further treatment of the disease and settling your medical bills to monthly mortgage repayments, meeting your kidsâ€™ school fees or go for a holiday tours to see the beautiful places or donate to charitable organisation.
The 36 critical illnesses are quite similar and common under the Bank Negara Maaysia Guidelines on Medical and Health insurance. The sample of 36 critical illnesses are :
|Heart Attack||Multiple Sclerosis|
|End Stage Liver Failure||Paralysis / Paraplegia|
|End Stage Lung Disease||Muscular Dystrophy|
|End Stage Kidney Failure||Alzheimerâ€™s Disease / Irreversible Organic Degenerative Brain Disorders|
|Primary Pulmonary Arterial Hypertension||Motor Neuron Disease|
|Coronary Artery By-Pass Surgery||Parkinsonâ€™s Disease|
Coronary Artery Disease
|Heart Valve Surgery||Benign Brain Tumour|
|Angioplasty and Other Invasive Treatments for Major Coronary Artery Disease*||Major Head Trauma|
|Surgery to Aorta||Bacterial Meningitis|
|Chronic Aplastic Anemia||Medullary Cystic Disease|
|Major Organ / Bone Marrow Transplant||Fulminant Viral Hepatitis|
|Blindness / Total Loss of Sight||Loss of Independent Existence|
|Loss of Speech||Terminal Illness|
|Deafness / Total Loss of Hearing||HIV Due to Blood Transfusion|
It is important that you have a cushion or reserved funds to prepare for the unexpected as these dread diseases usually strike when we least expected and it can be emotionally and financially devastating to the young family if the sole-bread winner is the unfortunate one to be diagnosed with it as the future financial supports of the other family members depended on him/her.
Here are some example of the main exclusions
- Any pre-existing illness prior to the effective date of the policy
- If the critical illness is caused by or related to any Human Immuno-deficiency Virus (HIV) includingÂ Acquired Immune Deficiency Syndrome (AIDS) and/or any mutations, derivations or variationsÂ thereof, other thanÂ HIV due to blood transfusion.
- If the insured is diagnosed with any critical illness arising directly or indirectly out of or inÂ connection with any congenital condition which manifested itself before the insuredâ€™s 6th birthdayÂ (only for juvenile policy)
Many insurance companies are upgrading the critical illnesses plans as there are demands from the consumers for better protection and coverage in view of the advancement in health care and discovery of scientific technology that could enhance and prolong the lifespan of human. Â The insurance companies have developed plans that even make early payments and multiple payments for diagnosis of different level of critical illnesses that affect the different organs and systems of the human body parts.
It is best for the proposed insured to review their current insurance policy before they embark on the critical illnesses plan.
Who can apply?
Young Malaysian children and adults up to the age of 60-65 years who are healthy can apply. Â Usually there is no requirement for medical check-up as the insurance policy contract is based on the utmost good faith or uberrimae fidei full declaration by the applicant or proposer. For foreigners residing in Malaysia with valid working permit and permanent resident status, they can also apply but may be subject to strict underwriting guidelines and may be required to undergo physical medical check-up at the insurer’s panel clinic or panel hospital before approval is granted.
The Critical Illness Insurance premium is cheaper for young insured Â person and especially the male gender. Â However, the premium increases as the bracket age of insured increases in tandem as statistics have shown that the insurance claims and the likelihood of an older adults affected by the critical illness are higher.
There is no money back in the event that there is no claim at the end of the insuring period of contract.
However, some insurance companies are offering increase in the sum insured for continuous renewal as a renewal bonus Â for clients who do not make any claim in the past years.
For clients in any parts of Malaysia, we are general insurance agent from Bukit Mertajam, Penang, Malaysia and are pleased to offer you some of the best critical illness insurance in Malaysia for your kind consideration. Â Please contact us.