Check Your Life Isurance Policy

The life insurance products is making breakthrough each day as insurers offer products to match modern lifestyle and needs. One of the many breakthrough products focus on Medical Insurance combined with Critical Illnesses.

Take the example of a typical policy coverage - ie
Male Age 30
Basic sum assured for death or total permanent disability RM300,000
Rider critical illnesses RM100,000
Rider medical insurance RM100,000 annual limit
                                                                   Rider waiver of premium

Critical Illnesses Cover
There are 2 types of critical illnesses rider. The accelerated and the non-accelerated.

Accelerated Critical Illnesses
The accelerated critical illnesses cancel the basic sum assured. For example, if the claim is made on crisis illnesses cover, then the insurer will pay RM100,000. If death occurs subsequently (policy conditions is after 30 days from date of diagnose) then the insurer will pay RM200,000 (not RM300,000).

Non-accelerated Critical Illnesses
The non-accelerated critical illnesses does not cancel out the basic sum assured. For example, if the claim is made on crisis illnesses cover, then the insurer pay RM100,000. If death occurs subsequently (after 30 days from date of diagnose) then the insurer will pay RM300,000.

Impact After Claiming Critical Illnesses Cover
This critical illnesses rider will cease upon paying the claim. The waiver of premium then waives all future premium for the Basic death or total permanent disability protection and medical insurance. Therefore the Basic coverage (death or total permanent disaability and medical insurance is still inforce).

Impact After Claiming Crisis Illnesses Cover and Total Permanent Disability
In the event the insurer pays the claim for Critical illnesses (RM100,000) and subsequently total and permanent disability (RM300,000 for non-accelerated  critical illnesses) - many policyholders should be aware and purchase the right policy ensuring that the waiver of premium kicks in and waive the premium for medical insurance until death or age 81 whichever is earlier.

Medical Insurance Up to Age 81
If a policyholder is diagnosed cancer at age 33 - this means he is entiltled to RM100,000 medical benefits per annum up to age 81. If the policyholder does not suffer death immediately, this means the insurer will contiunue to be liable for another 48 years or RM4,800,000 potential medical benefits for the policyholder in case he/she needs treatment in the hospital.

Important Note
Many policyholders are not aware of this unique benefits. Most insurers and agents would have sold you a policy - (that is cheaper but not better) - that cease completely upon paying Critical Illnesses plus Total Permanent Disability. Policyholders would have lose-out RM4,800,000 on the Medical Insurance if the whole policy cease completely after paying Total Permanent Disability.

Please check to ensure your policy remains intact (inforce) even after claiming critical illnesses and total permanent disability. "Good things are not cheap - and - Cheap things are not good"