Critical Illness Cover – Why You Need Sufficient
Over the past 4 to 5 years, most people in Malaysia especially in urban areas are well aware of having medical cover. The cost of even minor treatments in private hospitals are getting prohibitive for many where an appendix operation can cost RM 5,000 or more.
Although this is good news many people forget that critical illness cover is just as important. Why? Over the many years of servicing clients, I’ve been asked the probability of someone getting a critical illness like cancer, heart attack, stroke etc. I’ve not been able to tell exactly the rates but look at the article below.
In 2007, there are 15,500 people waiting for kidney transplant. 18 months prior to that, there are only 5,000 people on the waiting list. Long term illness like kidney disease can take a huge amount of money because you can survive as long as you have the money.
I got this brochure from Assunta hospital.
You can see, the cost of dialysis ranges from RM 180 to 240 per treatment. That excludes a certain type of injection which cost between RM 70 to 175! Assuming that you need 3 sessions per week or 12 per month, the cost of dialysis is over RM 2,100 each month. A year’s treatment will cost over RM 25,000.
If you have only 100,000 of critical illness cover, that will last only 4 years. Double that, it can only last 8 years. If you want your capital to last perpetually, you’ll need to have RM 500,000 generating 5% return every year. This gives you RM 25,000 interest.
If you have other source of funds like your investment monies, you’ll need a lesser amount.