MEDICAL INSURANCE VS CRITICAL ILLNESS INSURANCE: DO YOU NEED ONE OR BOTH?

	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.

The above articles are intended for informational purposes only. We accepts no responsibility for loss which may arise from reliance on information contained in the articles.

Retrieved from https://www.aia.com.my/en/what-matters/finance/medical-insurance-vs-critical-illness-insurance.html