Critical Illness Policy Riders: Increasing Your Coverage

Critical Illness Policy Riders: Increasing Your Coverage

One of the more modern insurance concepts has got to be Critical Illness policies. These types of policies were born out of basic medical insurance coverage. Insurance providers realized that there was a need for products that focused on illnesses that were increasing in society.

As society changes, so too do the types of insurance products that are offered. In this article, we will help you understand more about Critical Illness policies, and the riders (or additions) that usually come with them.

Source: xFrame

What is a Critical Illness Policy?

As its name implies, Critical Illness insurance is a coverage that pays out when you fall ill with any of the critical illnesses listed in the policy. Some of the most common illnesses covered include heart disease, diabetes, cancer, Alzheimer’s, Multiple Sclerosis and more.

The number of illnesses covered by each policy varies. It is also influenced by the insurance provider who will decide on the types of illnesses covered. You are advised to check the list of critical illnesses before you purchase the policy to ensure that there’s no misunderstanding. A typical Critical illness policy will cover anywhere from 30 to 100 types of illnesses.

A critical illness policy will usually pay out a lump sum once you are diagnosed with one of the illnesses listed within it. Unlike a medical policy, there aren’t any different categories of coverage, so you are free to use this lump sum in any way you see fit. This sum of money depends on the policy you’re buying. Usually, it ranges anywhere from about RM10,000 to several million.

How Can a Critical Illness Policy Help You?

A Critical Illness policy usually pays out a large sum of money only once. Where and how you spend this sum is totally up to you, and is not controlled at all by the policy terms and conditions.

Therefore, it can be used in the following ways:

1.      To pay for medical expenses

If you are receiving treatment for your condition, the payout can be used to cover things like consultation, therapy, hospitalization and the like.

Source: xFrame

2.      To cover loss of income

If and when you’ve lost your job due to the illness, you can use the critical illness policy to pay for your daily living expenses.

3.      To fund a change of lifestyle

Sometimes, illnesses result in disabilities. You may need a wheelchair, walking aid or to modify your car to accommodate these items. In another scenario, you may also need to have additional nursing care at home, or buy a special bed. These are lifestyle changes that the policy can help you with.

4.      Funding your children’s education

You can’t really predict when you will fall ill. It may happen while your children are still studying. As such, you can ensure that their education doesn’t get disrupted by your illness. 

5. Travel Expenses

Sometimes, your illness may need you to travel for treatment. This includes travelling to another state, or even overseas. Travelling can incur high costs, especially if you need to travel by air and pay for accommodation.

6. Spending time with your family

In certain cases, complete recovery is not possible. You may want to use your remaining time to create memorable moments with your loved ones. A Critical Illness payout can help you go on a wonderful vacation to places you’ve always wanted to visit.


Common Types of Critical Illness Riders

Just like a lot of other policies, Critical Illness insurance also has riders. These riders can be purchased separately and added to an already existing policy. Here are some of the most common types of riders meant for Critical Illness policies:


  1. Additional Illnesses Covered

If you purchase a rider like this, you’ll have more illnesses covered under the plan. For example, if your original policy covers 36 critical illnesses, you can now enjoy up to 50 illnesses. These new illnesses will usually include more uncommon conditions like Elephantiasis, Pancreatitis, Polio and the like. 


  1. Increased Payout

Another type of rider will increase the lump sum being paid out to you in the case of being diagnosed with a critical illness. For example, you can increase the payout from 3 times the basic sum covered to 5 times the basic sum covered. 


  1. Early Stage Illness Coverage

Most traditional critical illness policies will only disburse your payout once the illness has progressed to a significant stage. However, many new riders now allow the coverage of illnesses at its early stages, up to 25% of the assured sum and a further 50% payout  if the illness progresses.. 


This will be very beneficial as it allows you early access to funds, to treat your illness at its initial stages when the chances of recovery is higher. 

  1. Increased Number of Claims

Certain riders increase the number of claims you can make up to 8 times for different illnesses, whereas the original critical illness policies would limit your claims to a much lower number. 


With these new riders, your sum assured would be refreshed after every claim, so you can benefit from the full assured amount for every illness you face.



Source: xFrame


Some Critical Illness Riders to Consider

There are many riders out there and we’ll look at some real life Critical Care riders.


  1. The AIA A-Plus Beyond Critical Shield & A-Plus Beyond Early Critical Shield

These two policies cover up to 180 conditions, of which 75 is at its late stage, 40 intermediate conditions and 65 covered at its early stages. This is one of the critical illness policies with the most diseases covered under one plan.


  1. Great Eastern’s Smart Multi Critical Care

Enjoy up to 800% on the sum assured with this rider. There are also special benefits with up to 60% of rider sum assured, and double protection against cancer, heart attacks and stroke. 


  1. Prudential Total Multi Crisis Care

Prudential’s rider covers up to 160 illnesses from early to its late stages. You’ll be able to make multiple claims up to 400% of the original sum assured. 


Do You Need Critical Illness Riders?

The fast paced modern world means that many people are busy with work, and work is most often in a sedentary office. This has led to an increase in illnesses that result from sedentary lifestyles. 


Although you may live healthily, it is always a good idea to plan for the unexpected. Critical illness riders will help you stay prepared should anything happen, and you’ll also ensure that your family is provided for too. 


If you would like to know more about how you can improve your current Critical Illness policy with a rider, or learn about Critical Illness policies themselves, you can always contact us to consult with one of our professional agents.