Affordable Critical Illness Plan
With Malaysia’s medical inflation hovering at 15%, we are definitely living at very trying times. Recent retrenchments and salary cuts are not helping the already diminishing purchasing power of the average Malaysian.
When it comes to setting up a critical illness fund, the number one reason why most people are not covered sufficiently is because of the expensive premium. It’s not just because there’s an increasingly higher chances of us being diagnosed with critical illness, it’s also because most of the critical illness plans in the market is tied with either a whole-life insurance policy or an investment-linked insurance policy. With such a tie-up, you not only get insurance coverage, the policy premium is also participating in the investment activities of the Insurance Company, which means you can expect return in the form of bonuses whenever the Insurance Company declare them. However, this would also meant that you will be paying quite a hefty premium for the coverage as well as for the prospect of earning cash bonuses from the insurance policy.
This has invariably caused many middle and lower income households unable to protect themselves from potential financial disaster should the breadwinner of the family struck with critical illness. Yes, apart from news of being diagnosed with illness, the breadwinner is more worried that the entire household’s savings can easily be wiped out in an instance for his treatment.
However, despite these these doom and gloom, there are still insurance companies that package their critical illness plans without tying it up with a whole-life or an investment-linked policy. Like a personal accident policy that is renewable annually, these critical illness plan are much more affordable and is a good alternative for those who might much idle cash in their pocket after paying for living expenses. A typical term critical illness policy can protect up to RM150,000. The premium of these policies usually increases with age and there will be no cash bonuses declared by the company. Since it’s a term policy, you also do not get any surrender value once you terminate the policy. You can check out these affordable critical illness policy here.
It’s important to note that there are ways that we can reduce our risk of being diagnosed with critical illness. We can control our eating habit and at the same time ensure that we have sufficient exercise. Awareness of the causes of critical illnesses should also be part of the preventive measures. Yet, a prudent risk management strategy is to always be prepared for the worst case scenario. Ensuring that you have a sufficient critical illness policy would be one of the crucial step to protect you and your family against an unpredictable emotional and financial crisis.