{"id":41110,"date":"2023-07-11T09:48:05","date_gmt":"2023-07-11T01:48:05","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=41110"},"modified":"2023-07-11T17:27:09","modified_gmt":"2023-07-11T09:27:09","slug":"medical-card-vs-critical-illness","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/medical-card-vs-critical-illness","title":{"rendered":"Should You Get Critical Illness Insurance If You Already Have A Medical Card?"},"content":{"rendered":"

Signing up for your first insurance policy, or reviewing your current coverage?<\/p>\n

When it comes to medical insurance, there are a lot of products in the market. To many of us, it\u2019s not always clear how these insurance products complement each other, or how they fit into our lifestyle.<\/p>\n

This is especially true when it comes to hospitalisation and surgical insurance (widely referred to as a medical card) and critical illness insurance. If you already have a medical card (or if your life insurance policy has a medical rider), you may be wondering if you need a critical illness insurance.<\/p>\n

Here\u2019s what you need to know.<\/p>\n

<\/span>Medical card vs critical illness insurance <\/b><\/span><\/h2>\n

A medical card and a critical illness insurance differs in terms of function, coverage and payout. However, both are eligible for tax relief. Here are their differences at a glance:<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t
<\/td>Medical card<\/th>Critical illness insurance<\/th>\n<\/tr>\n<\/thead>\n
Function<\/td>Covers the costs of treatment or surgery when you are admitted to a hospital<\/td>Gives you a lump sum payment if you are diagnosed with one of the covered critical illnesses<\/td>\n<\/tr>\n
Coverage and payout<\/td>The payout covers the costs of medical treatment or hospitalisation only<\/td>Patient can use the lump sum payout for anything they want (e.g. pay off some of the costs associated with illness, but were not incurred in the hospital)<\/td>\n<\/tr>\n
Tax relief<\/td>Eligible<\/td>Eligible<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Read on for a more in-depth comparison.<\/p>\n

<\/span>How do they work?<\/b><\/span><\/h2>\n

Don\u2019t have any insurance coverage at all? Start with a medical card<\/b>. Everyone needs a medical card \u2013 if you\u2019re not adequately insured, large medical bills could bankrupt you<\/a> or put you in debt. A medical insurance policy will help pay for the costs of medical treatment or hospitalisation.<\/p>\n

In contrast, a critical illness insurance<\/b> policy gives you a lump sum payment upon diagnosis of any of the critical illnesses covered. It also pays upon death or disability.<\/p>\n

<\/span>What are the payout terms?<\/b><\/span><\/h2>\n

With a medical card<\/b>, the payout doesn\u2019t go directly to you. Instead, the payout will be used to cover your hospital bills.<\/p>\n

A critical illness insurance<\/b> policy will give out a lump sum payment, which you can use for anything you want. This is useful, because some of the costs associated will illness and hospitalisation are incurred outside the hospital.<\/p>\n

For example, say a patient has been admitted for heart valve surgery. She could use a critical illness payout to cover the following:<\/p>\n