Is critical illness insurance useful? Do you need critical illness insurance if you already have medical insurance?
Health2024-07-31
5 Mins Read
Due to rising medical costs, the trend of serious illnesses affecting younger people, and increased government promotion, public concern for health protection has gradually increased in recent years. However, when it comes to understanding the difference between medical insurance and critical illness insurance, many people are still confused.
They might have similar questions: Since both types of insurance are designed to protect health, do you still need to purchase critical illness insurance if you already have medical insurance? What are the advantages of critical illness insurance? In the following section, we will explore the specific functions of critical illness insurance and its differences from medical insurance, to help you better understand the distinctions between the two types of insurance and why it's beneficial to have both.
TotalAssure Critical Illness Plan series
When faced with unexpected illnesses, not everyone is fully prepared. But TotalAssure Critical Illness Plan series can help you get ahead of minor illnesses before they become major ones.
The function of critical illness insurance
In Hong Kong, modern lifestyles significantly impact health. High-pressure work environments, unhealthy eating habits, and lack of exercise are common, increasing the risk of serious illnesses. For example, the incidence of cardiovascular diseases and cancer continues to rise in Hong Kong, and treating these diseases and illnesses can be expensive, often requiring long-term care, with the recovery process possibly taking years.
This makes critical illness insurance an essential tool for protection. Critical illness insurance is specifically designed to cover certain major or minor illnesses. When the insured person is diagnosed with a critical illness listed in the policy, the insurance company pays a lump sum to the insured or their designated beneficiary. This compensation can be used for various purposes, such as covering medical and living expenses or compensating for lost income due to inability to work, helping the insured and their family cope with financial pressures caused by illness, allowing the insured to focus on treatment without worrying about financial strain.
Currently, some comprehensive critical illness insurance policies also offer compensation for specific early risk conditions, supporting the insured in seizing early treatment opportunities to prevent minor illnesses from developing into major ones. Some critical illness insurance even provides lifelong coverage for newborns from birth, ensuring ongoing protection.
【TotalAssure Critical Illness Plan series】
When faced with unexpected illnesses, not everyone is fully prepared. But TotalAssure Critical Illness Plan series can help you get ahead of minor illnesses before they become major ones.
Differences between critical illness insurance and medical insurance
After understanding the functions of critical illness insurance, it's easier to grasp the differences between critical illness insurance and medical insurance, and why it is advisable not to neglect either.
One-off lump sum VS. Reimbursement
As shown in the table, critical illness insurance primarily provides financial support when the insured suffers from certain major or minor illnesses, typically including major health risks like heart attack, cancer, and stroke. The insurance company pays a lump sum upon diagnosis, allowing the insured to use the funds as needed for daily living or medical expenses.
Medical insurance mainly covers medical expenses, including hospitalisation, surgery, and consultation fees. It operates on a reimbursement basis, meaning the insurance company pays based on actual treatment costs, usually requiring corresponding medical invoices for claims. Therefore, even if you already have medical insurance, purchasing critical illness insurance ensures a more comprehensive health safety net for you and your family.
【TotalAssure Critical Illness Plan series】
When faced with unexpected illnesses, not everyone is fully prepared. But TotalAssure Critical Illness Plan series can help you get ahead of minor illnesses before they become major ones.
AXA’s TotalAssure Critical Illness Plan Series Features:
1. Pre-emptive care
If diagnosed1 with Precancerous Lesion of Breast, Colorectal Adenoma/Polyp(s)2, or Cardiomyopathy3 at an early stage, you can receive lump sum payout of up to 5% of the sum insured. Providing timely early intervention support to alleviate potential financial burdens from health issues and critical illnesses before they arise.
2. Continuous protection
Provides Multiple Claims Major Illness Benefit and monthly financial support for cancer and stroke4. For severe dementia, it offers an additional annual payout up to 12% of the sum insured, supporting until age 100.
3. [Market leading] Protection starting as early as 18 weeks of pregnancy5
If designated pregnancy complications arise, extra 105% of the total premiums paid will be compensated. Additionally, the plan offers a Postpartum Depression Benefit for parents, as well as continuous coverage for the baby's undetected congenital related illnesses at the time of policy application. In the event of miscarriage, a Compassionate Benefit of 105% of the total premiums paid will be provided.
4. Other product features:
- Covers up to 135 illnesses
- Total coverage up to 1300% of the sum insured
- Instant support for late stage cancer4
1. Subject to certain requirements. For details, please refer to policy provisions.
2. Applicable to Colorectal Serrated Adenoma /polyp(s).
3. Applicable to Early Dilated Cardiomyopathy.
4. Only applicable to TotalAssure Plus Critical Illness Plan and TotalAssure Plus Critical Illness Plan – BabyPro.
5. The term ‘market leading’ refers to the earliest timepoint when a critical illness insurance plan available for new business in the market could be taken out during pregnancy (according to AXA internal market research conducted as of 24 June 2024). Only applicable to BabyPro version of TotalAssure Plus Critical Illness Plan Series.
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
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TotalAssure Critical Illness Plan series
When faced with unexpected illnesses, not everyone is fully prepared. But TotalAssure Critical Illness Plan series can help you get ahead of minor illnesses before they become major ones.
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