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Everyone needs medical insurance, but not everyone needs critical illness protection. Is this statement true or false?
To answer that question, we must first find out what is the purpose of both policies. A medical insurance policy protects you in the event of a medical emergency which requires hospitalisation, by covering for the cost of treatment. 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. Still confused? It’s okay, we have an example of how they would play out in a person’s life.
If a person has severe stomach discomfort, he goes to a clinic to see a doctor. At the clinic, the doctor suspects it is a case of appendicitis and refers the patient to a hospital for immediate medical attention. Upon checking, the case is confirmed - the patient has a severe case of appendicitis and has to undergo a surgery immediately. The surgery goes well and he is discharged from the hospital after two days of bed rest. The cost of hospitalisation, treatment and medication, which comes up to about RM18,000, is fortunately covered by the patient’s medical policy, A-Life Med Regular. If he did not have a medical plan, he would have to fork out the amount to cover his bill!
There are also certain critical illnesses such as cancer or kidney disease which require more medical attention such as outpatient treatments, alternative medicine and etc. These costs are usually not covered under a medical plan.For example, if the patient above suddenly has a stroke, he would be hospitalised immediately. His post-stroke paralysis means he cannot resume working after that. A-Plus CriticalCare helps the patient go through life with a lump sum payment. This amount can then be used for anything, not restricted to medical treatment (which a medical insurance would already cover).
What does it do? |
| MEDICAL INSURANCE |
| Medical plan pays for the cost of treatment and medication of a hospitalisation |
| CRITICAL ILLNESS INSURANCE |
| Critical illness plan provides a lump sum payout upon diagnosis of one of 36 critical illnesses, total and permanent disability or death |
What can I do with the pay out? |
| MEDICAL INSURANCE |
| Pay for medical cost of treatment or hospitalisation |
| CRITICAL ILLNESS INSURANCE |
| The patient can use the lump sum payout for anything they want, not restricted to medical treatment. For example, some use it to help their family’s financial situation. |
Coverage until? |
| MEDICAL INSURANCE |
| Until age 100 |
| CRITICAL ILLNESS INSURANCE |
| Until age 85 or death |
Who does it most benefit? |
| MEDICAL INSURANCE |
| The policyholder (and his family, if plan covers family) as it helps pay for their medical treatment |
| CRITICAL ILLNESS INSURANCE |
| The policyholder and/or their dependents, depending on use of payout |
What is the premium payment like? |
| MEDICAL INSURANCE |
| Premium increases with age |
| CRITICAL ILLNESS INSURANCE |
| Premium remains the same throughout lifetime |
| MEDICAL INSURANCE | CRITICAL ILLNESS INSURANCE | |
| What does it do? | Medical plan pays for the cost of treatment and medication of a hospitalisation | Critical illness plan provides a lump sum payout upon diagnosis of one of 36 critical illnesses, total and permanent disability or death |
| What can I do with the pay out? | Pay for medical cost of treatment or hospitalisation | The patient can use the lump sum payout for anything they want, not restricted to medical treatment. For example, some use it to help their family’s financial situation. |
| Coverage until? | Until age 100 | Until age 85 or death |
| Who does it most benefit? | The policyholder (and his family, if plan covers family) as it helps pay for their medical treatment | The policyholder and/or their dependents, depending on use of payout |
| What is the premium payment like? | Premium increases with age | Premium remains the same throughout lifetime |
Back to the earlier true or false question – everyone needs medical coverage for the unexpected emergencies and medical help. This is especially important today, when medical care can be costly and unplanned for. Meanwhile, critical illness provides an extra cover of protection for 36 most common and critical illnesses, and helps to address other possible financial needs you may have through the lump sum payout. For example, if you are unable to work because of the illness, the payout can be used as your income replacement during that time of recovery.
Which coverage you choose for yourself and your loved ones, depends on what you are looking to protect yourself from. Stay informed and educated, and find out more about our Critical Illness and Medical insurance here.
Medical Insurance Critical Illness InsuranceThe above articles are intended for informational purposes only. AIA accepts no responsibility for loss which may arise from reliance on information contained in the articles.
Life is full of risks but your healthcare shouldn’t be one of them. Today, with longer life expectancy and the ever-increasing cost
Our fast-paced and demanding lifestyles have led to a significant increase in the number of illnesses and diseases.
