Why take up Critical Illness Plan?

If we happen to catch a cold or fever, we will go seek medical consultation and then doctor give us medical leave. We still get paid salary for the day.

What if more severe sickness such as 36 critical illness hit? Medical leave will get wipe up with just a blink of eye and probably need to take unpaid leave. Will the company continue to provide you salary so that you can continue to pay your monthly bills? Depends. Let’s say your company is generous enough to pay for you, how long do you think your job scope will be replace by a new staff? Or do you still able to concentrate 100% to your job, or do you just want to concentrate on your health recovery? I bet you that at that point in time, health is the upmost important element that you wish to take back full control, not the job.

Let’s say you met a guy who diagnosed with Cancer. He consult you, he told you he’s in depressed and feel lost. What will be your 1st Question to him? DO YOU BUY INSURANCE? Yes, it’s normal right? When a friend diagnosed with CI, we ask them, Do you buy insurance? When we attend funeral, we ask the deceased relatives 2 Questions : Does the deceased bought insurance? Does the deceased have a Will done? But how much we ourselves bought our own insurance to cover our income, our family income, our recurring income upon retire, our medical bills and our estates?

Let’s back to reality. What fund are we going to use to maintain our current lifestyle? Aside from that, extra funds needed to seek alternative treatment, buy extra supplements, transportation cost and so on. If we do not have the CI pay-out, we need to 1st use our emergency fund (which most of us keep only 3-6 months), liquidate our investment account, cash out other insurance plan, withdraw EPF or if worst still, liquidate the properties. This provided we have enough assets to liquidate. What if you we do not even have assets to liquidate? With a CI plan, the pay-out can use to settle all the above concerns and the person can focus 100% on recovery because he do not need to worry about funds inflow to pay for the recurring outflows.  

Do you know what are the top 5 critical illness in Malaysia?

Cancer, Heart Attack, Stroke, kidney failure and other serious coronary artery diseases.  Do you know a young man at the age of 5 do also claimed for stroke diagnosis? 

In the market there are many types of CI plan and insurance is all about risk management. Choose the one which can help you to minimize your risk and of course got to fit to your current financial condition. What is the rule of thumb? A person needs a critical illness plan which can cover at least 5 years of his income.

Does this mean if my current financial position unable to protect 5years of my income, I do not buy? Definitely NO. Enrolled with a smaller protection amount and add more when your salary increased. 

Currently Great Eastern offers a critical illness plan (Great Critical Care Relief) which covers the top 5 critical illness. Besides, this plan covers admission benefit too. If the person need to undergo a major surgery and admit in hospital at least 21 consecutive days or stay in ICU for 7 consecutive days, this plan also pay out one lumpsum to the life assured.

This plan also pay out in the event of death or when the plan matures at age 80. The best part is, 25/10/2022-31/12/2022, 50% discount on the premium rate until this plan matured.

CI plan very expensive. What if I’m all the way healthy till old age and all the premium paid will just throw down the drain?

Yes, I got you. I got a GOOD NEWS for you. This plan by Great Eastern pays you back all your premium paid at maturity, which means if you remains healthy till age 80, you can get back all the amount paid to spend on yourself, your spouse or your grandchild.

Let’s see a male, non smoker would like to protect his income loss of RM100K. Yearly premium: RM4,110. With the 50% premium rate discount offer by GE, the life assured now need to pay only half the price which is RM2,055 to enjoy the same protection until maturity. If all goes well and the plan matures at age 80, this life assured will get back RM100,000 which is more than your premium paid of RM82,200. Don’t you think is great?

So this plan serve multiple purpose. One, it can protect your income loss in the event of critical illness. The insurance proceed can help in paying the monthly commitments. It can serve as an extra retirement fund for you if you are healthy at maturity. Am I losing out anything? The answer is NO.

Of course, not all individuals are suitable to the above plan mentioned. Whether it suits you or not depends on your own financial goals, current protection, current cash flow and so on.

Feel free to let me know whether is it a good deal for you. If you are in doubt about your current insurance coverage and need a policy review, feel free to reach out to me. Do comment, thanks.

Request for a policy review. Feel free to book my time.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: