Insurance ; Critical Illness Insurance

Critical illness insurance pays you a lump sum either when you’re first diagnosed with it or after a surgery that the policy covers. This specific insurance is meant to cover post-hospitalization costs.

How is it normally sold: 

  • Stand-alone plan
  • In a whole life policy plan
  • Optional Rider to an existing whole life plan


  • Major Cancers
  • Heart Attack
  • Coronary artery bypass surgery
  • Stroke/Kidney Failure

Pointers to Note:

  • Waiting period; usually, during diagnosis or for surgery there would be a waiting period – Do consult your agent immediately to ask what is the best course of action. Negligence and naivety can make you lose your benefits if the waiting period is ignored.
  • Amount paid can vary depending on the stage of the cancers
  • Coverage duration is a key factor that you might want to consider (E.g Coverage till you’re age 99 is twice as expensive as compared to the coverage age of 65)
  • Watch out for specific coverage, e.g Death ( only cover death and Total Permanent Disabilities) and Death with critical illness (covers death/ critical illness/ terminal illness)
    • Coverage amount varies between the two categories: death with critical illness tends to have lower coverage amount

Average Cost:

  • Death (without CI) For aged 25-30: $500 – $800 Annually
  • Death (with CI) For aged 25-30: $732 – $1,200 Annually

Payout on Policy:

  • $500K / $1M (Depend on the payout you choose)



The idea of having an insurance plan is to protect you from unforeseen future circumstances by contributing an insignificant amount of money in the present. If it exceeds the category of “insignificant”, you might want to pull up a statistical chart to gauge the possibility of such a situation happening to you.

Points to think about:

  • What is the future value of $500K/$1M when your 65 Yrs old or even 99 Yrs old?
  • What is the opportunity cost of purchasing it now and at a later year?
  • What is the investible amount that could justify a later purchase?
  • Is there an instrument or product that could diversify my need for an insurance?

“+1 Knowledge Point”

p.s my blog link is going to revert back to by Aug cuz inflation going up and I’ve no money



Insurance – All you need to know in 5 mins

what we seek from insurance is a peace of mind…. but does it really gives it? maybe it does?

The 4 Main Types of insurance

  1. Term Life 
    • “Term” states that it is for a period normally 5 – 30 years coverage
    • It allows you to choose what is to be protected and hence allowing you to pay a lesser premium (Cover only what is needed to be covered)
    • Pure insurance benefit (Very little to no cash benefit )
  2. Endowment (Part of a Term Life Policy)
    • All you need to know it acts something like a Fixed Deposit
    • It’s commision rates varies on the type of endowment plan you’ve purchased (look at how much premium is going into fund house and to your agent)
  3. Whole Life 
    • “Whole” states that it can cover your entire life (Health and Wealth)
    • Due to the double coverage, you pay a higher premium (It can be more than double coverage)
    • This means higher commissions are given to the agent that sells you this policy
  4. Investment Linked Product
    • It acts something like the Whole Life Policy but it has greater flexibility (Choosing of mutual funds and allocation of money to either more wealth or health)
    • High commissions and annual maintenance fee (Mutual fund) means a high premium.

As insurance has been the “now” taboo subject that is highly avoided, due to the strong perception that our money is what they(agents) are after, there is no doubt that we eventually have to get one (family/yourself). What I would recommend is to get your insurance online.

There will be a 30% rebate of the premium that you will be paying when you purchase from this website 🙂 Which means you’re only paying 70%?!?!?! 🙂

“Knowledge sets everyone free”

+1 knowledge point