What is a critical illness insurance plan and who needs it?
This is something you might not have heard before but in case of emergencies such as heart attacks, cancer, stroke, etc. a critical illness insurance plan hong kong is the only thing protecting you from any financial hurdle. This insurance plan was developed in 1996 for realizing people surviving from heart attacks or strokes. As these diseases are expensive, it might not be easy for a family to sustain it. Critical insurance pays for illness not covered by the traditional plans and the insured will be receiving the lump sums for recovering all the costs. You can invest in a few thousand dollars to around $1,00,000 depending on the policy you have chosen.
- Why is it needed?
You can purchase the critical illness scheme on your own or even through your employer. It recognizes all the employees facing difficulty in paying money and it acts as a money saver for people as well. It is a guaranteed return plan used for various things like:
- Paying of medical services that were otherwise not possible
- Paying for treatments not covered by the traditional policy
- For paying all daily expenses that the employees are not able to pay due to illness.
- The terminally ill patients or anyone needing some peaceful times can use this fund to go on vacation with friends and families.
- Low and limited coverage
But the thing with critical illness plan is that the more you are investing it, the more premium you will have to pay. Seniors must be careful about these policies. There can be limits for paying out at a certain age of say about 75 years in sections called age reduction schedules. But these policies and plans do not give guaranteed returns at all times. For many expected illnesses, ratios can be 60% and this ratio works as part of the future returns.
If 60% of the returns are paid out, then 40% of the returns are not paid at all. So before involving in the same, you need to know the investment returns.
Disability insurance is another type of insurance plan for covering the ill patients. This is beneficial for those who have been absent for a long time and they are not getting the payment for the same.
Since medical bills are rising daily, investing in one such investment plan can work wonders for you. A critical illness scheme can save you from worry as money is getting saved even when you get too ill to work. It provides flexibility in the way that you can take out the money as you wish. As there are so many types of insurances available, choose the one that best suits your needs.