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TOP 5 MISTAKES THAT PEOPLE MAKE WHEN THEY BUY CI PLAN

 




#1 THEY ARE CONFUSED BETWEEN MEDICAL CARD AND CI COVERAGE 🙈

Here’s a simple chart for you to see the difference between the two benefits.

CRITICAL ILLNESS

MEDICAL CARD

Pays to policy holder in the event of critical illness

Pays to the hospital when policy holder admits for treatment in a hospital

lump sum payout, depending on plan, some CI plan pays out during early stage of CI; multiple times on a certain CI depending on the terms in the policy

Pays to the hospital directly and depending on the plan, sometime a policyholder co-share the hospital bill

Can claim from multiple insurance companies

Can only claim from one medical card at a time; if the amount is insufficient then only can claim from the other medical card


#2 THEY SIGN UP BECAUSE IT’S CHEAP😎

Some of my clients received calls from telemarketers promoting CI over the phone at RM25/m - RM45/m and without any hesitation, they signed up not knowing the exact benefits. Only to realize the coverage is for 15 types of CI or maybe just cover for certain CI such as cancer.


There’s a saying, cheap doesn’t mean it's good and good is always not cheap. Scroll on to #4 on types of CI that may suit you


#3 THEY BUY THE COVERAGE ACCORDING TO THEIR FRIEND’S OR FAMILY’S COVERAGE 😝

Buying a CI plan is not like going to Mc Donald’s, you see your friend order set A, you also just follow….. coz you never know…. maybe your friend is not on diet and you are…. And by right you should be having salad instead of a burger 😅😅 figurative speaking.


Everyone has different genetics/ earning income/ lifestyle. Two sets of people earning RM10,000 per month don't spend the same amount on their lifestyle monthly. Some may overspend and some are spendthrift.


So likewise when selecting CI coverage, there’s a rule of thumb we follow according to your income/ how much you spend on a monthly basis. Because when CI strikes, the person may not work for at least 6 months to 2 years depending on the severity. Bear in mind, you still need to service home loan/ car loan/ pay debts/ kids still need to get their edu/ maybe need to hire a nurse/ order daily meals for the family/ opt for organic food/ get supplements and etc… Usually, I’d advise my clients to get 3-5x of their annual income for their CI coverage. And of course the best time to buy a CI plan was… yesterday…. Coz the earlier you buy this plan, the cheaper it is for you.



#4 THEY SURVEYED AND COMPARED SO MUCH TIL THEY GOT CONFUSED 😵‍💫

Generally there are 3 types of CI plans, and here’s a chart for those of us who're looking for one.

TYPE/ DETAILS

TERM PLAN

ILP

STANDALONE

Premium cost

$ - $$

$$$

$

Covers for early/ late stage/ multiple stages of CI

Only for late stage

Option to select early stage or late stage or multiple stages

It covers for specified type of CI (i.e cancer/ lady related cancer)

Does it affect the death benefit if claim CI

Some yes and some may not affect

Some yes and some may not affect

Yes

Coverage term

Up to 70yo

Up to 100yo

Up to 70yo

Any cash value?

No

Yes

Some plans offer premium back at the end of term, others may not



#5 THEY BUY IT TOO LATE 🤕

Like a car that needs quarterly/ half yearly/ yearly servicing. Our policy too needs a quarterly/ half yearly/ yearly review on our coverage whether it’s relevant. I had a client who was diagnosed with breast cancer, asked me why I didn’t contact her to do top up. But I told her I did ask for a review but she was often busy with work and we never get to it and now it’s too late for her to do any top up. So are you due for a review?


Do check out my website and Facebook page at

www.victoria-lim.com

Https://victoria-lim.planyourfuture.today

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