Hello teachers,

I am in the market to look for a critical illness insurance plan. To be precise... basic plan, not those tied up with investment link etc.

Can you please advise?

Thank you.

Xuzen.

What's your income?
What's your budget for Insurance? RM 150 - 175K coverage
How old? (mid 30's and non-smoker)
Female/Male? (Male)
Occupation? (Office worker)
Do you have any dependent? How many? How old? Are they working or not? (One child 2 y/o, one more coming soon)


Xuzen

I got a quite of RM 536.00 p.a. for SA 50K (AIA)

I asked for a basic (no rider and not investment linked) critical illness coverage and this is what the agent quoted me.

Is this a fair market rate?

Xuzen

I need CI for protection.

I read from KC Lau, Money Matter that we need CI protection of 3 x our annual income. Therefore I am under protected (my existing CI policy which was bought earlier based on my earlier income level and is currently inadequate). Adding this RM 50K will bring it up to an adequate level.

I am healthy at the moment, but getting sick during older age is a guarantee.

And since we are on this topic, what would be considered a adequate protection for Hospitalization & Medical?

Xuzen

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Added on February 21, 2009, 12:17 pmMy Life Policy is adequate.

I am now looking to up my CI and Med card Protection. As one progress in life, ones' needs and protection increases. Yes, I want to keep my CI & Med card policy separate, it is cheaper this way isn't it?

Xuzen

This post has been edited by xuzen: Feb 21 2009, 12:17 PM

I am self employed.

Xuzen

Just to update you people:

I bought my CI from my regular agent (AIA): premium RM 537.00 p.a. for SA RM 50K.

I also increased my med card to a life time limit of RM 500K, premium abt RM 800.00 p.a.

Call me kiasu for taking such high coverage, but I know that illness is a definite thing, and I want to be well taken care off during my down-time.

Xuzen.

Medical Card covers your hospital bill only. There is usually a life time cap based on your premium. I read somewhere that your cap should be 10 times your current annual salary. MedCare covers any event of hospitalization irrespective of cause, NB. Outpatient treatment are usually excluded. Seeing a GP outside are also generally excluded.


A traditional Med Card, your premium is burned in the event you do not use the facilities. Med Card is to indemnify you, not for profiteering.


Assuming you retire at 55 y/o, the only drawback is that your premium will be much much higher compare to when you buy it when you are 25 y/o.


Do not confuse Med card with Critical Illness with PA. They are different tools for different purpose, just like a screwdriver is good for screwing screws, hammer is good for hammering nails and a cutter is good for cutting stuff. Although you will find them all classified as handyman's tool.

To have all round protection, you need all, just like if you are a handyman doing repairing job you need all the necessary tools.

As a general rule of thumb, 10x annual salary for med card, 3-5 xannual salary for CI & PA.

Disclosure: I am not an insurance agent, but I am a user of insurance.


That or hire a Financial Planner like I did and you can get quotes from so many different company whereas an agent are limited to two Life Insurance company.

Xuzen