Navigating the terms of insurance can be hard, especially with number of products types serving similar but different purposes. It can be hard to identify the thin line which separates them. So if you’ve come across the term ‘Critical Illness insurance’ recently, you may be wondering to yourself: What really is the difference between Critical illness and medical insurance plans?
Here is a short and simple breakdown of how Medical insurance (also known as medical card) is different from a Critical illness plan.
Comparison Table
| Critical illness insurance | Medical insurance / Medical Card | |
| Payout | Lump sum (1-go) payment to policyholder based on illness | Payment to panel hospital for medical treatment, hospital stay |
| Number of Claims | Only one time | Up to annual or lifetime, or agreed coverage amount |
| Function | You can use this amount to pay for your living expenses, treatment, and cover for your Leave from Work | Your medical treatment and hospital stay are covered by the medical card, but extra expenses such as living expenses, food, will be out of your own pocket |
| Premium | Monthly, Yearly | Monthly, Yearly |
What does Critical Illness Coverage cover?
Critical Illness plans are designed to pays out an agreed sum insured in one go (based on illness and severity), to the policyholder when they are diagnosed with a listed critical illness. This amount is also calleda lump-sum claim.
One can generally expect CI coverage to pay out for common critical illnesses, such as: heart attacks, strokes, kidney failure, cancers, tumors, deafness, blindness et cetera. Roughly there will be an average of 36 illnesses covered.
A critical illness insurance plan may also include Personal Accident Insurance and Life Insurance coverage. This is uncommon, and is a great offer to save costs as holders will get additional benefits with just 1 plan, such as payout in the event of physical disability (due to personal accident) or even death.
Learn more about MediSavers PrimeLife 48 critical illness plan, which is a life protection membership program that covers 48 critical illnesses up to RM300,000.
What does Medical Insurance cover?
Medical insurance policy, sometimes known as a medical card, is a financial support service which covers (fully or partially) your medical treatment, plus hospital bills when you are hospitalised.
Unlike critical illness policies, a medical coverage pays the hospital directly or reimburses your medical & hospitalisation bills if you have already made a payment.
A medical insurance is great for long term coverage, as it’ll also pay for your room & board within the hospital as you are being treated. In Malaysia, this amount can come up to RM200 – RM500 per day in a private hospital. In 30 days, the costs would come up to a hefty RM6000 – RM15,000.
The most important factor when getting medical insurance is affordability and the coverage amount. A perfect balance of price and protection is MediSaversVIP Prime, a healthcare membership program distributed by Pathlab Health Management Sdn Bhd.
Read more about how MediSaversVIP Prime can help you fight rising medical fees in Malaysia.
Which protection should I get – Critical illness or Medical?
Having both medical insurance and critical illness insurance can provide the most comprehensive support in your times of emergency. However, it is totally up to your own risk appetite and budget.
With just medical insurance alone, you’ll be covered for your hospitalization fees, which could come up to nearly 6 figures. Let’s say you’re hospitalized for 30 days, with a hospital room of RM200 the stay alone could cost RM6000. If the cause was due to a heart attack, the average treatment would cost RM30,000 – if it was due to a stroke, treatments could go all the way up to RM75,000. In total it could all cost RM81,000! So having medical insurance is definitely a priority.
However, one has to keep in mind that during the hospitalization, you may not get paid for your absence at the office. Imagine not getting paid for 30 days, 60 days, or even in the long term if treatment lasts longer than 60 days. It’s devastating.
Therefore by having both medical insurance and critical illness insurance plans, you can ensure your financial security in dire medical situations. This can give you peace of mind and allow you to focus on your recovery, allowing for a faster & healthier lifestyle.
How to buy Critical Illness Coverage?
To buy critical illness insurance, you can contact an insurance company directly or work with a licensed insurance agent. It’s important to compare quotes from different providers and carefully review the terms and conditions of the policy to ensure it meets your needs and budget.
MediSavers PrimeLife 48 is an affordable, comprehensive option that goes beyond just traditional critical illness protection. It’s a membership program that provides life protection, critical illness protection, and more to support your financial and treatment needs in three categories.
- Up to RM300,000 in Critical Illness
- Up to RM300,000 in Life Protection
- Up to RM600,000 in Personal Accidents
Get MediSavers PrimeLife 48 today with a simple online payment, or visit MediSavers Prime Life 48 product page to learn more.
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