Is NT$1 Million Enough for Critical Illness Insurance? A Guide to Ease Your Coverage Concerns and Protect Your Family Finances
- 懶大 (Lazy Da)
- 財務工具與金融商品
- Last updated: October 29, 2023
- 4 min read
In this article, you'll learn:
Critical Illness Insurance - 懶得變有錢 (Lazy To Be Rich) Quick Take
To all you lazy fans who can’t be lazy yet, and those who can’t be lazy but really want to be, I attended a friend’s event the other day and deeply realized the importance of the question, “How much critical illness coverage is enough?” Hearing my friend share his cancer journey, even though it was a mild case, I still felt that critical illness insurance is really important because both mild and severe cancers can cause worries about medical expenses.
Critical Illness Insurance | A Type of Insurance You Can’t Be Sure You’ll Have in the Future
What is Critical Illness Insurance?
Critical illness insurance, simply put, is insurance that prevents you from having to sell your house and land when you get a serious illness. It covers 22 major categories (300+ sub-categories) of critical illnesses, including cancer, kidney failure, etc. Once diagnosed, you’ll receive a lump sum that you can freely use for treatment costs, nursing care, or wage loss compensation. Honestly, some conditions have extremely high cure rates after treatment or diagnosis, but the National Health Insurance Administration still issues cards.
What are the Advantages?
- You get money once you receive a critical illness card, with clear claim conditions.
- The critical illness card covers 30 major categories (300+ miscellaneous items), providing broad coverage.
- The lump-sum insurance payment can be used flexibly.
Why is Critical Illness Insurance So Special?
You get compensation for minor and major illnesses as long as you have the card. When this insurance was first launched, it blew my mind. It’s like the epidemic prevention insurance of recent years, except this insurance didn’t become so popular that everyone lined up at insurance companies to buy it!
However, I hope that if this type of product is ever discontinued, the crowds lining up to buy it won’t be smaller than those for epidemic prevention insurance, indicating that everyone has purchased enough!
Introduction to Critical Illness Insurance
The payout method for this type of insurance is mostly a “lump-sum payment.” In recent years, there has also been an extension to “annuity-type payments” due to increased survival rates. As long as you meet the National Health Insurance’s critical illness criteria, you can apply for compensation. For example, if you plan for NT$3 million (USD 93,750) in coverage and unfortunately get cancer, then you can receive NT$3 million (USD 93,750) in compensation. (Let’s pretend I didn’t give this example.)
Comparison Table of Critical Illness Insurance / Major Illness Insurance / Specific Illness Insurance
Here is a table to give you a clear overview of the differences between these three types of insurance.
| Insurance Type | Covered Items | Coverage Scope | Claim Basis | Payment Method |
|---|---|---|---|---|
| Critical Illness Insurance | 30 major categories (300+ miscellaneous items), compensation with card | Broad | National Health Insurance | Lump Sum/Annuity |
| Major Illness Insurance | Traditionally defined 7 items or more | Medium | National Health Insurance | Lump Sum/Annuity |
| Specific Illness Insurance | Insurance company decides how many items to give | Narrow | National Health Insurance | Lump Sum/Annuity |
Critical Illness Insurance Coverage Planning | How Much is Enough?
According to the Taiwan Cancer Foundation’s report, nearly 75% of cancer patients have out-of-pocket expenses, and 2% of cancer patients have out-of-pocket expenses exceeding NT$1 million (USD 31,250). Therefore, it is recommended to plan for critical illness insurance coverage between NT$1 million (USD 31,250) and NT$2 million (USD 62,500). Of course, in terms of budget, it is best to buy up to NT$5 million (USD 156,250).
Tip
💰 With money, you’re not afraid of illness; with insurance, you’re not afraid of poverty.
Here’s a Statistical Table from the National Health Insurance Administration for You to See
2022 Top Ten Diseases with the Highest Medical Expenses under the National Health Insurance:
| Rank | Disease Name | National Number of Visits (Thousands) | Medical Expenses (Millions of Points) | Average Medical Expenses (Points) | Medical Expenses Standard Deviation | Percentage |
|---|---|---|---|---|---|---|
| 1 | Acute Renal Failure and Chronic Kidney Disease | 502 | 58,740 | 116,991 | (232,935) | 7.14% |
| 2 | Diseases of the Oral Cavity and Salivary Glands | 11,413 | 47,051 | 4,123 | (5,500) | 5.72% |
| 3 | Diabetes | 1,862 | 40,162 | 21,566 | (29,478) | 4.88% |
| 4 | Hypertensive Diseases | 2,743 | 26,561 | 9,682 | (21,115) | 3.23% |
| 5 | Malignant Neoplasms of Digestive Organs | 188 | 23,933 | 127,503 | (224,434) | 2.91% |
| 6 | Ischemic Heart Disease | 611 | 21,826 | 35,743 | (104,420) | 2.65% |
| 7 | Cerebrovascular Diseases | 447 | 20,285 | 45,377 | (143,789) | 2.47% |
| 8 | Acute Upper Respiratory Infections | 10,274 | 17,826 | 1,735 | (2,733) | 2.17% |
| 9 | Malignant Neoplasms of Respiratory and Intrathoracic Organs | 86 | 17,254 | 201,387 | (317,913) | 2.10% |
| 10 | Contact with Health Services for Other Specified Procedures (Anti-tumor treatment such as radiation, chemotherapy, or immunotherapy, palliative care, etc.) | 290 | 14,370 | 49,498 | (142,159) | 1.75% |
Source: National Health Insurance Administration Multi-Model Health Insurance Data Platform Outpatient, Delivery Institution, and Inpatient Detail Files.
This table only shows the money spent! It only shows the average value (points), but what you see is only “National Health Insurance points,” which does not include “out-of-pocket medical expenses.” So what’s the purpose of this table? It’s to tell you that these items are very expensive because even the National Health Insurance fees are expensive, so how can out-of-pocket expenses be cheap?
Warning
Can you tell that dialysis patients probably account for the highest proportion of critical illness expenses?
Combine Critical Illness Insurance with Real-Cost Medical Insurance for More Comprehensive Medical Protection
If you only buy critical illness insurance, you may find that the money is still not enough during long-term treatment. Therefore, it is recommended that everyone combine it with real-cost medical insurance, so that you can transfer the cost of each hospitalization treatment.
How to Choose the Right Critical Illness Insurance for You?
Choosing critical illness insurance is a basic part of insurance planning, but you still need to consider the following factors:
- Do you have the money to buy it?
- Do you have the money to buy more?
- Do you have the money to buy even more?
These 3 factors will determine the amount of insurance you receive when facing a critical illness.
2024/06/20 Update on Insurance Companies Selling Critical Illness Insurance
The following are reference premiums for a 30-year-old female (premiums may vary depending on the insurance company’s adjustments/reference information does not represent a purchase recommendation)
| Insurance Company | Product Name | Product Code | Annual Premium | Insured Age |
|---|---|---|---|---|
| Global Life | Medical Card Praise Critical Illness One-Year Health Insurance Rider | XDE | NT$2,960 (USD 92.5) | 0-65 years old · Maximum coverage up to 80 years old |
| Farglory Life | Bao An Kang Critical Illness One-Year Term Health Insurance Rider | RN1 | NT$3,860 (USD 120.6) | 0-65 years old · Maximum coverage up to 80 years old |
| KGI Life | Medical Card Health One-Year Critical Illness Health Insurance Rider | MAJIEA | NT$3,479 (USD 108.7) | 0-65 years old · Maximum coverage up to 80 years old |
| Fubon Life | Medical Card GO Critical Illness One-Year Term Health Insurance Rider | SWR | NT$200 (USD 6.25) | 0-65 years old · Maximum coverage up to 80 years old |
| Allianz Life | Bao Man Fen Critical Illness Health Insurance Rider | NHRA | NT$4,100 (USD 128.1) | 0-65 years old · Maximum coverage up to 85 years old |
| Shin Kong Life | Medical Card Smooth Heart One-Year Critical Illness Health Insurance Rider | M4D | NT$3,190 (USD 99.7) | 0-70 years old · Maximum coverage up to 80 years old |
| Taishin Life | Chang Bao An Xin Critical Illness One-Year Term Health Insurance Rider | NHICIR | NT$3,740 (USD 116.9) | 0-65 years old · Maximum coverage up to 80 years old |
| Taiwan Life | Jin Ka An Xin One-Year Term Critical Illness Health Insurance Rider | CIR4/NYCI0402 | NT$3,970 (USD 124.1) | 0-70 years old · Maximum coverage up to 85 years old |
| MetLife Taiwan | New Go Da Xin One-Year Term Critical Illness Health Insurance Rider | NGODCR | NT$3,900 (USD 121.9) | 0-65 years old · Maximum coverage up to 84 years old |
| Hong Tai Life | Ka An Xin Critical Illness Health Insurance Rider | NDD | NT$2,910 (USD 90.9) | 0-70 years old · Maximum coverage up to 80 years old |
| Allianz Life | Bao Man Duo Critical Illness Health Insurance Rider | NHR | NT$5,320 (USD 166.2) | 0-65 years old · Maximum coverage up to 85 years old |
| Global Life | Yi Ka Tie Xin Critical Illness One-Year Health Insurance Rider | XDF | NT$2,900 (USD 90.6) | 0-65 years old · Maximum coverage up to 80 years old |
Real Case Sharing: Ah Ming’s Story
Ah Ming is a 42-year-old office worker who is usually under a lot of work pressure but always smiles and is the joy of his colleagues. He had the foresight to purchase a critical illness insurance policy 5 years ago.
Last year, Ah Ming began to feel unwell and was often exhausted, so he decided to go to the hospital for a comprehensive physical examination. After the results came out, the doctor told him that he had kidney failure.
This news was undoubtedly a heavy blow to Ah Ming. As the breadwinner of the family, his first thought was how this would affect his family. But fortunately, he had purchased critical illness insurance.
Because Ah Ming had critical illness insurance, he received NT$3 million (USD 93,750) in compensation. This money was not only used for his medical expenses but also reduced his financial stress, allowing him to focus more on treatment.
Ah Ming is currently undergoing treatment, and although the road is still long, at least he doesn’t have to worry too much about medical expenses. This story tells us that critical illness insurance is not only a guarantee but also a responsible expression for family and oneself.
Don’t wait until you need it to regret not buying insurance. Ah Ming’s story is the best proof. Plan ahead and be prepared for the future to have more choices and possibilities when facing difficulties.
Further Reading
懶得 (Lazy) Conclusion
Insurance is like this, you never know when you will use it. But when you really need it, you will be very grateful that you were prepared. Don’t hesitate any longer, go and learn about critical illness insurance and make a wise choice to ensure that your coverage is sufficient to protect your future.
I hope this article has given you a deeper understanding of critical illness insurance and that you can make a wise choice. Remember, insurance is used to protect the future, not to make money. Choosing the right insurance for yourself is the best love for yourself and your family.
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