Should I get critical illness insurance?

The answer to this depends on your current age, and whether there are any factors that make you more prone to critical illness.

But I’m jumping the gun here, let’s first deal with the basics.

Critical illness insurance pays you a lump sum if you suffer critical illness like cancer, stroke or a heart-attack. Although your medical policy should cover most of your surgical and follow-up medical expenses, you might want an additional amount to cover your loss of income whilst you recuperate, or to try out expensive treatment like immunotherapy which might not be covered by your medical policy.

Do get critical illness insurance that covers the greatest incidence of diseases. Some critical illness insurance plans cover as many as 39 critical illnesses, others the 4 most frequent, I would recommend getting one that covers the maximum number of critical illnesses.

When should I get critical illness insurance?

Statistically, these critical illnesses occur only during later stages of life. So if you are generally in good health, I would recommend you consider critical illness insurance only in your mid-thirties.

However, if you have close relatives e.g. parents, siblings, aunts or uncles have a history of early onset of critical illness, or if you are predisposed to some health ailment, I recommend you take up critical illness insurance as soon as possible.

If you’re in doubt, give yourself peace of mind by purchasing critical illness insurance. After all, that’s what insurance is for, to provide for unexpected situations.

How much coverage should I get?

I would recommend that you get sufficient coverage to cover an ongoing, extended critical illness like cancer. Treatment for something like breast cancer can cost RM250,000 over a number of months, years even, so I would aim for this coverage amount. Sure, some treatment will be paid by your medical insurance, but it does help to have extra coverage so that you can focus on fighting the critical illness, rather than worrying about the cost of treating it. So if you can afford the premiums, I would recommend coverage of at least RM250,000.

Hope you find my answers to these questions on critical illness insurance useful. If you do, please subscribe to my weekly newsletter below, and I will be motivated to answer your questions even more!

	For articles on how to improve your financial wellness, sign up for our weekly newsletter.

Yours truly,
Harvin Sidhu