Critical illness insurance

Critical illness insurance gives you the privilege to take time off from work and focus on recovering by getting the best treatment in the world. 

It is basically a plan that will give you a pay out in the event critical illness being diagnosed. There are usually about 30 critical illnesses listed, with the most common claims come from cancer, heart disease and stroke.

Most people will use the cash pay out to get newly developed treatment or medicine that may not be covered under the hospital plan. Plus hospital plan usually only cover you when you are in the hospital. Once you are discharged, the continuous treatment associated with critical illness may not be covered. Thus the pay out can be use for that as well.

2 types of critical illness definitions:

-Major stage = Benefit will be paid out in the event the insured is diagnosed with major stage critical illness (E.g. Cancer stage 3).

-Early stage = Benefit will be paid out in the event the insured is diagnosed with early stage critical illness (E.g. Cancer stage 1).

To claim from "early stage" critical illness plan is easier compared to "major stage" critical illness plan.

Is this a plan that you should consider?

For single: Yes if possible.

For married couple: Yes if possible.

For family with children: Yes if possible.

For retiree: Yes if possible.

Why did I said "if possible"? It is because critical illness plan does not come cheap and especially if you want to cover the "early stage" critical illness. So once your hospital plan is already in place, the critical illness plan will definitely be a good complement if you have the budget.

Some of the plans that are available in the market:

1. Normal major stage critical illness plan.

2. Comprehensive critical illness plan (can cover from early stage to catastrophic stage).

Tips: Aim for at least 3 times of your annual income for your critical illness coverage.