HOW TO DETERMINE THE SUM COVERED FOR CRITICAL ILLNESS?
CRITICAL ILLNESS is a very serious issue nowadays and any delay in decision or inadequate cover will lead to financial bankruptcy putting the whole family at risk.
Method 1
These are some considerations,
1) Costs Of Medical Treatment
Eg : Ranging from RM100,000 to RM 600,000
2) Family Living Expenses
Eg : RM 5,000 X 12 months X No Of Living Years
3) Long Term Care
Eg: RM 1,000 X 12 months X No Of Living Years
Case Study: A gentlemen age 50 suffered Kidney Failure. A kidney dialysis can cost RM80,000 over 2 years. Then proceed to kidney transplant ( eg: China ) will cost approximately RM 450,000.
Assuming everything turns out well, the patient will need Long Term care about RM1,000 X 12 months X 20 years= RM 240,000.
During this period the patient will likely lose his job with zero income. Living expenses need to be taken care eg: RM5,000 X 12 months X 20 years= RM 1,200,000.
Total Sum Covered needed : RM 1,970,000.
( He lives for 20 more years)
Method 2
The living expenses will continue to rise because of inflation:
Case Study : A family man with wife and 2 children age 5 and 8 years old. Monthly living expenses are RM 6,620 for food, clothing, shelter, babysitter and etc.
Assuming the youngest child reaches an independent age of 25 years old, the family would need at least RM 1,588,800 of financial support.
Calculation:
RM6,620 X 12 months X No Of Years Of Support (25-5= 20 years)= RM 1,588,800.
Are You Aware That?
Malaysian Labour Law
In the event of critical illness or medical boarded, the employer is liable to pay affected employees' salary ONLY for 60 days ( 2 months ). Thereafter termination of service.
Survey conducted randomly,
Multi- National Companies : pay 6 months
Public Listed Companies : 1st 2 months FULL salary, next 4 months HALF salary. Thereafter termination of service
Civil Servants
In the event of critical illness or medical boarded, the civil servants will get a portion of last drawn salary as pension . The percentages are from 20% to 50% depending on their years of service.
These cover the whole employment scenario, any non preparation will have disastrous impact on your families. Do not be stubborn with insurance!
Don't worry, insurance is affordable nowadays.
Method 1
These are some considerations,
1) Costs Of Medical Treatment
Eg : Ranging from RM100,000 to RM 600,000
2) Family Living Expenses
Eg : RM 5,000 X 12 months X No Of Living Years
3) Long Term Care
Eg: RM 1,000 X 12 months X No Of Living Years
Case Study: A gentlemen age 50 suffered Kidney Failure. A kidney dialysis can cost RM80,000 over 2 years. Then proceed to kidney transplant ( eg: China ) will cost approximately RM 450,000.
Assuming everything turns out well, the patient will need Long Term care about RM1,000 X 12 months X 20 years= RM 240,000.
During this period the patient will likely lose his job with zero income. Living expenses need to be taken care eg: RM5,000 X 12 months X 20 years= RM 1,200,000.
Total Sum Covered needed : RM 1,970,000.
( He lives for 20 more years)
Method 2
The living expenses will continue to rise because of inflation:
Case Study : A family man with wife and 2 children age 5 and 8 years old. Monthly living expenses are RM 6,620 for food, clothing, shelter, babysitter and etc.
Assuming the youngest child reaches an independent age of 25 years old, the family would need at least RM 1,588,800 of financial support.
Calculation:
RM6,620 X 12 months X No Of Years Of Support (25-5= 20 years)= RM 1,588,800.
Are You Aware That?
Malaysian Labour Law
In the event of critical illness or medical boarded, the employer is liable to pay affected employees' salary ONLY for 60 days ( 2 months ). Thereafter termination of service.
Survey conducted randomly,
Multi- National Companies : pay 6 months
Public Listed Companies : 1st 2 months FULL salary, next 4 months HALF salary. Thereafter termination of service
Civil Servants
In the event of critical illness or medical boarded, the civil servants will get a portion of last drawn salary as pension . The percentages are from 20% to 50% depending on their years of service.
These cover the whole employment scenario, any non preparation will have disastrous impact on your families. Do not be stubborn with insurance!
Don't worry, insurance is affordable nowadays.
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