Critical Illness Insurance, also known as Critical Medical Insurance, is a type of insurance that can be used to pay for medical expenses otherwise covered by health insurance should the insured person be diagnosed with a critical illness. The leading cause of death in people under 65 years old is cancer and the most common diseases are heart disease, stroke and chronic respiratory diseases.
The main reason individuals choose this type of insurance is to protect them from financial loss if they develop a condition that gives them frailty which could prove fatal. Another advantage of this insurance is that it can provide tax benefits and other incentives to help lower overall medical costs for the insured individual or his/her family members.
It is a form of protection against suffering financial losses
When you are diagnosed with a critical illness, it means that your health has already been impacted negatively. This will also mean that you may have to spend most of your savings to pay for medical expenses for treatment and other related fees. Critical Illness Insurance Malaysia helps to cover these expenses which could drain an individual’s bank account if not handled properly. This is why it is paramount to have this type of insurance so that one does not suffer huge financial losses in case he/she falls sick with a critical illness
Tax benefits and other incentives may be availed
For people who are taxed, the money used for health care can be deducted from their total taxable income.
The premiums should be paid from the insured’s own money. The premiums can be deducted from the gross income before filing taxes. In most cases, it is possible to claim back the expenses incurred on paying for treatment as well as other fees after receiving a note from the insurance company stating that they have already been paid.
Some medical providers may even give discounts on treatments and medicines when Malaysia Critical Illness Insurance policy has been purchased. This serves to be a great way of saving more money in the long run.
It can provide immediate assistance to people who need urgent medical care
When you fall sick with cancer for example, your doctor will recommend that you undergo chemotherapy and radiation therapy. These can be costly and extremely expensive. This is why it is nice to have critical illness insurance so that you are not hit with such huge expenses. With this type of insurance, you will only have to pay for the deductible amount which is minimal. You will be relieved from the burden of paying for expensive treatment which can cost thousands of dollars should you not have sufficient savings to cover the medical bills
It can protect people who need urgent medical care
In the case where a person is suffering from a critical illness, he/she may require emergency treatment immediately. In most cases, one has to pay in full without any type of discounts or any flexibility when it comes to payment terms and conditions because emergency circumstances require immediate attention.