Dreaded Disease Insurance is bought for treating dreaded diseases, right?…… Well, yes and no!

Surprise, surprise! Now why am I telling you this?

Let me get straight to the point. If dreaded diseases are medical problems, then don’t you have Medical Insurances to pay for medical problems? Why not a Medical plan that covers ALL your medical problems and not just Dreaded Disease ( Critical Illnesses). Will your DD Insurance pay to remove your appendicitis and treat a broken arm? Ever thought why you are throwing good money for two insurance policies, when one very good medical plan will suffice for all your medical needs?

This is the reality. If you could only afford only one insurance policy, then a good Hospital & Surgical Insurance is a must. A Dreaded Disease insurance is mainly to COMPLEMENT your medical plan. Let me clarify here that Medical Insurance is supposed to only REIMBURSE actual expenses coming out of your own pocket. That is to say that you can’t claim from two companies and make a profit. The only exception is Hospital Stay benefit which may pay a fixed amount for everyday you are hospitalized and can be claimed from all your plans offering this.

Dreaded Disease insurance however will pay any amount decided by you from the onset and from every plan you own, regardless of the cost of treatment, or whether your treatment is paid by your medical card, or your group insurance or you receive treatment free

These are the reasons why Dreaded Disease insurance is bought. They are divided into 2 sections, minor & major reasons:-

Minor reasons

  • Treatment of critical illnesses can be very, very expensive. You may exhaust your annual limit on your medical plan, and will have something to fall back on as a reserve. Then again nowadays you have plans that will cover you up to maybe RM200,000 or even RM300,000 per annum. So is this still a valid reason for a DDplan only instead of an H&S policy?
  • Your medical plan may require you
    • to pay a certain percentage of medical treatment cost for example 10% or 20% as a co-payment clause or
    • a penalty should you exceed your allowed room charges or
    • exceed inner limit schedule, eg allowed claim for surgery maybe RM30,000 while actual will cost RM40,000

Then again nowadays you have policies that don’t have any of the above conditions.  Again, is this a valid reason?

  • Your Medical Policy may expire too early, e.g. Age 70. These days you have policies expiring at Age 80 or even Age 100
  • Your policy may not have GUARANTEED RENEWAL or may have CONDITIONAL RENEWAL based on previous claims, e.g. decline of cover for specific medical problem or loading of premium upon renewal
  • Some policies do not cover specific treatments, like organ transplant. The better and newer Medical Plans cover these also
  • Some diseases like cancer or kidney failure require prolonged outpatient treatment which may extend beyond the 30 day or 60 day post-hospital  treatment period. Nowadays, these are also provided for in Medical policies with no time limit but a cap on the amount claimable as out-patient treatment

Major reasons

Now we come to the more important reasons why Dreaded Disease Insurance is most important:-

Imagine yesterday the doctor told you that your kidneys were shot and you needed dialysis treatment permanently. Just what type of thoughts do you think would be racing through your mind?

My God! Why me? Why not someone else? How will I manage? Will I die too soon? How much is it going to cost me?  Why are the private hospitals so bloody expensive? Why are the government hospitals so bloody slow?  How will I manage between treatment and working to earn an income to just pay the bills?

Let’s take it step by step:-

    • First, I have to take time off from work, 6 months maybe a year, to treat myself and recover the earliest possible. Maybe my wife too has to be by my side.  Away from the stress so that I can recover faster. How much does my year’s income amount to? My Dreaded Disease Insurance should be able to cover that loss of income
    •  My superior medical plan should be able to cover all dialysis treatment expenses, but then what kind of life am I going to live, having to jab myself 3 times a week? The best alternative is a kidney transplant. But then there are about 13,000 people waiting in line for a kidney. When will I get mine? The solution, a transplant overseas. Kidneys in India and China are more readily available as compared to anywhere else. The actual implant costs will be covered by my medical policy. But the cost of acquiring one? The airfare and accommodation costs? Nowdays do you see the number of new hotels beside hospitals? Medical Tourism is now big money.These will be covered by my  Dreaded Disease Insurance
    • Once people get wind of my problem, many people will seek me out, especially my creditors. They worry I might die before they recover their loans to me. My debtors? They will disappear and hope for me to die and solve their debt problem. How do I manage my cash flow? Yep, my Dreaded Disease Insurance
    •  After my treatment, I just might want to laze about at a beach resort or go on a holiday for a couple of months. Best environment for recovery, away from the daily hustle and bustle and stresses of life. This too paid by my Dreaded Disease Insurance
    • After this life will never be the same again. Anti-rejection drugs, medicines, food-supplements, organic food…. All this cost even more money
    • And what if, after all this, I should still die? At least I should be able to leave a tidy sum for my loved ones to enable me to fulfill my duties as a provider for my family. And also remember, whatever assets that you own, insurance moneys are almost always the first to reach your family
    Nobody is insane enough to want to “profit” from a dreaded disease. But the reality is having enough money around might just help you live longer.Just how much do you need? Rule of thumb- 3 or 5 times your annual income

Please contact me if you need more information

Rama Krishnan




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