Critical Illness Insurance - Pay Less For more
CRITICAL ILLNESS INSURANCE - PAY LESS FOR MORE
Pure Term Critical Illness Plans will give you a much higher payout than Critical Illness Savings Plans for each dollar of premium. This is because the insurer does not need to charge extra premium to "invest" in order to provide you with a surrender value. Surrender values are usually very low in the initial years and provide a poor return during that period.
The biggest difference between critical illness insurance and medical insurance is how claims are paid. Unlike medical insurance, critical Illness Insurance pays out a fixed lump sum if the policyholder is diagnosed with any of the covered critical illness in the policy.
The sum assured should usually be around 3 to 5 years of policyholder’s annual income, so that the policyholder can focus on his recovery.
Take a non-smoking male as an example, the annual premium of a pure term plan with HK$0.5m cover can go as low as HK$1,000 per year and by the age of 65, he would have paid only half of the premium of an equivalent savings plan.
Of course, there is a savings element inside the savings critical illness plan - the point is that you have to pay a total premium of HK$0.3m to get HK$0.5m cover under a savings plan.
The biggest difference between a Pure Term Critical Illness plan and a Savings Plan is the surrender cash value. Since there is no surrender cash value for Pure Term Critical Illness plan, the premium paid by the policyholder is solely used for protection and the cover can be very extensive:
Critical Illness Cover Once the policyholder is diagnosed with any of the covered critical illness, the policyholder will be compensated for the agreed lumpsum inside the policy. The number of covered critical illness differs amongst policies and insurers.
Life Stage Benefit Some plans have benefits for early critical illness and pre-cancerous changes, and some can even provide extra protection based on ages of the policyholders to cater for their needs at respective life stages.
Medical Care Benefit It is not uncommon for policyholders to use the lumpsum payout received from the critical illness plan to subsidize their medical expenses. To help share policyholders’ burden regarding the substantial treatment costs, some of the Pure Term Critical Illness plans in the market also provide free medical care benefits covering hospitalization, treatment, long term care and nursing care expenses with maximum claiming limits based on the actual expenses.
Death Benefit If the policyholder has never made a critical illness claim, he/she may receive a higher amount of death benefit e.g. double the sum assured.
Critical Illness plans are for everyone at every age!
A 35-year-old non-smoking male can get HK$0.5m critical illness cover at an annual premium as low as HK$1,038:
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Compare and Buy the Best Critical Illness Insurance from Top Insurers Sunlife Financial, AXA, Zurich, Bupa and More
InsureDIY helps you pick the 4-5 best-valued critical illness plans from the many products offered by the credible insurers in town
You can compare straight from our compare table, with premium and benefits listed side by side, so that you can figure out the most suitable plan in no time.
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The above table is for illustration only, retrieve the latest quotes now.
InsureDIY Limited is an insurance broker licenced by PIBA and is authorised to distribute insurance in Hong Kong.
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