The importance of medical and critical illness insurance

Healthcare costs have been on the rise, along with the aging population and the increase in chronic illnesses and long-term care needs. Health insurance can maintain financial stability, so you can be rest assured that your loved ones won’t be saddled with unexpected bills, should anything happen to you. A comprehensive insurance policy can cover your emergency healthcare bills, and help to defray the cost of daily living expenses in adverse situations.

Here are some insurance solutions that you can consider to provide the protection that suits your needs:

• Health insurance: Against a background of rising medical and hospitalisation costs, you might want wider, and higher coverage for medical expenses.

• Personal accident insurance: This is for the times unforeseen injuries and accidents. For instance, ankle sprains, back sprains, or if hit by a careless rider.

• Critical Illness insurance: Critical illness insurance provides a lump sum of money if diagnosed with certain illnesses or disabilities such as heart attacks, strokes, or cancer. Because these emergencies or illnesses often incur greater-than-average medical costs, these policies pay out cash to help cover those overruns when traditional health insurance may fall short.

• Whole Life insurance: This insurance covers you for life. It is a protection plan that comes with cash benefit that is accessible upon policy surrender. Depending on your coverage plan, you get a lump sum pay-out if you are permanently disabled or critically ill, or your loved ones receive it if you pass away.

The differences between critical illness insurance and medical insurance

In terms of the scope of coverage, medical insurance in general covers the insured’s hospitalisation and surgical expenses. The amount of compensation received by the insured do not exceed the actual cost of treatment.

On the other hand, benefits from critical illness insurance are generally paid out if the insured suffers from life-threatening diseases specified under the policy (such as heart disease, cancer, stroke). The insurance company may then make a one-off cash compensation in accordance with the relevant critical illness plan, regardless of how much the surgery, hospitalisation, or other expenses cost. This lump-sum cash payment could be useful to cover loss of income and other daily expenses that may not be covered by your medical insurance, so you can focus on health recovery.

The high cost of treatment can use up your entire medical coverage, leaving you with little to no coverage for future illnesses. This is where critical illness plans come in. A critical illness plan is a separate and independent policy from your medical plan.

Is the coverage of my company's medical insurance enough?

With the increasing cost of medical care and overcrowding of public hospitals, people bear high medical expenses when they are admitted to private hospitals.  Medical insurance taken out by your employer may not provide adequate protection. Employer’s group medical insurance often only provides basic hospitalisation and medical expenses protection, and the sum insured usually depends on your rank, salary, and seniority. You have no autonomy to decide on the amount and the scope of protection. The sum insured may not be sufficient for the actual needs of the individual. In addition, once an individual leaves his job, the protection will end. However, if you have taken out critical illness insurance, you may get a one-time cash compensation to use for emergency or reimbursement of the remaining medical expenses which will allow you to focus on rehabilitation.

How much should I spend on insurance?

It is important to buy a health insurance policy that fits both your needs and your budget. It is also important to note that pre-existing conditions may not be covered by insurance policies provided by private insurers.

Here are some questions you need to consider when comparing health insurance.

• What coverage do you currently have?

• What additional coverage do you or your family need?

• What options are available?

• What is your budget?

• What are your monthly expenses that need to be covered if you fall ill and are unable to generate an income?

Gain peace of mind with easy underwriting process without medical examination for Sum Insured up to IDR 10 bio, active policy guarantee for the first 10 years of the policy, and additional benefit with MiTreasure Optimax Care for comprehensive protection benefits at home and abroad.

Be future ready