Need more than medical insurance? Read our guide to term critical illness cover and how to calculate the sum assured!

Hong Kong people live at a fast pace and under great pressure, working from nine to six and often overtime into the night. The last thing anyone wants is for a critical illness to strike unexpectedly and catch them off guard — not only are private medical costs and targeted drug expenses eye-watering, but household expenses, mortgage repayments and children’s education costs during treatment leave finances even more strained. Many people think that once they have medical insurance, there is no need to buy critical illness insurance. In fact, medical insurance only works on a reimbursement basis and mainly covers hospitalisation, surgery and medication costs; it cannot offset living expenses and lost income during illness. However, the lump-sum cash payout from critical illness insurance can cover medical expenses and also support day-to-day costs during treatment and recovery, making it the key to filling this gap and giving you greater confidence when facing health challenges.

FWD MyCover Plus (Critical Illness Protection Upgrade Plan with Flexible Choice) offers flexible insured amount options and renewal term options, designed to meet the living needs of Hong Kong people. The plan covers 62 critical illnesses, including major conditions such as cancer, acute myocardial infarction and stroke — according to FWD’s 2024 Hong Kong critical illness claims data, these three major illnesses accounted for 87% of total claims, allowing you to focus on the risks that occur most frequently. The plan can be applied for directly online, with a simple process and affordable premiums, from as low as about HK$1 per day¹. Customers can choose according to their own needs, giving themselves and their families genuine peace of mind. 

Many critical illness insurance plans in the market promote coverage for a wide range of illnesses, including many ultra-rare conditions. While this may appear comprehensive, policyholders often end up paying high premiums for illnesses that are unlikely to occur.

(1) Coverage based on the three major illnesses, focusing on core risks

In 2023, there were 37,953 new cancer cases in Hong Kong. Before the age of 75, 1 in every 4 men and 1 in every 5 women will develop cancer. The most common types are lung cancer (16.1%), breast cancer (14.8%) and colorectal cancer (14.4%)². According to estimates by the World Stroke Organization, 1 in every 4 adults may have a stroke — stroke is the fourth leading cause of death in Hong Kong and caused over 3,100 deaths in 2020³. Heart disease, such as acute myocardial infarction, is also a major threat. FWD data shows that these three major illnesses already account for 87% of total critical illness claims, so critical illness insurance should at least cover these three major illnesses.

(2) How many critical illnesses are enough for peace of mind? Adding more cover for rare illnesses will only push up your premiums needlessly!

Why is “62 illnesses” more cost-effective than “several hundred illnesses”? Many critical illness plans in the market highlight the number of covered illnesses; however, data shows that most diagnosed cases are concentrated in critical illnesses with a higher likelihood of occurrence. The endless pursuit of cover for ultra-rare illnesses effectively increases the premium burden on policyholders.

MyCover Plus covers 62 critical illnesses, and once the insured is diagnosed, 100% of the sum insured will be paid out. The plan covers carcinoma in situ and early-stage cancers of specified organs (such as breast, lung, cervix, prostate, thyroid and non-melanoma skin cancer), with a payout of 35% of the sum insured upon diagnosis (up to HK$400,000). This early-stage cancer benefit is higher than the 20% of the sum insured offered by other critical illness insurance plans, helping you respond early and avoid deterioration of the condition.

In addition, MyCover Plus also covers neurological diseases and specific childhood illnesses, making it suitable for those seeking more comprehensive protection at an affordable premium. According to 10Life’s professional rating, MyCover Plus achieved a high score of 8.8/10 and received a 5-star certification for term critical illness insurance (high value for money)*. In simple terms, a 25-year-old woman needs to pay only a few dozen dollars more per year (depending on age, sum insured and gender) to upgrade her protection from the three major critical illnesses to a more comprehensive cover of 62 critical illnesses, offering excellent value for money, especially for younger people or those on a limited budget who want a complete solution from the outset.

Finding the right critical illness coverage amount is key to making it sufficient! Medical shortfall + 2-3 years of household expenses = the ideal insured amount

Critical illness protection is not about buying as much as possible; it should match your personal financial situation and life stage to ensure it is the right amount. How should you choose the right insured amount? Financial advisers in the market usually calculate the insured amount based on two to three times annual salary. Even if you need to rest for 2-3 years and are unable to work, critical illness insurance claims can help cover living expenses. On this basis, if you also take into account the coverage shortfall in your existing medical insurance, adding that shortfall to 2-3 years of living expenses and using the resulting amount as your insured amount will provide more comprehensive and reassuring protection. 

We use the example of a 35-year-old woman diagnosed with colorectal cancer (a common high-risk cancer in Hong Kong) to illustrate the estimated costs, as follows (based on St. Paul’s Hospital 2024 data⁵): 

Treatment costs, including colectomy surgery, anaesthesia fees, doctors’ fees, hospitalisation fees and medication, are approximately HK$250,000. When treating advanced bowel cancer, one injection of targeted therapy costs around HK$20,000 to HK$30,000. Assuming the patient receives one injection every 3 to 4 weeks for six months or more, the cost would already reach HK$160,000 to HK$200,000; over three years, treatment costs could amount to approximately HK$500,000, bringing the total medical expenses to about HK$750,000.

Adding the loss of income from stopping work after being diagnosed with a critical illness, if this woman has a monthly income of HK$22,500, her total income over 3 years would amount to HK$810,000 — money originally needed for household expenses, mortgage payments, children’s education and other daily costs, which medical insurance simply cannot cover. In addition, post-treatment chemotherapy, rehabilitation care, and possible complication-related expenses can easily push the overall total beyond HK$1.5 million. Even if the existing medical insurance provides HK$500,000 of cover, there would still be a funding shortfall of HK$1 million, which can be bridged by taking out critical illness insurance in advance.
 

It is therefore clear that by calculating your own medical coverage shortfall and then adding 2 to 3 years of income loss from being unable to work, you can determine the critical illness coverage amount that suits you. 

Critical illness cover is important for people at different life stages. Critical illness insurance complements medical insurance — medical insurance mainly covers expenses such as hospitalisation and surgery, while a lump-sum critical illness payout can help cover living expenses.

MyCover Plus can be purchased separately on the FWD online insurance platform or bundled with other products for comprehensive protection.

Use promo code "10LIFE" to enjoy a limited-time offer: get 70% off the first year premium when purchasing MyCover Plus on its own!

[Optional add-on for zero-burden medical cover]: Voluntary Health Insurance vPrime Plus with Term Critical Illness MyCover Plus is suitable for those who prioritise medical care quality. vPrime reimburses medical expenses, while MyCover Plus covers living expenses during illness. Bundle and enjoy a higher discount; the Voluntary Health Insurance also offers tax deductions¹¹, helping you save even more.

[Best value add-on]: Term Life MyTerm Plus with Term Critical Illness MyCover Plus is suitable for breadwinners or mortgage holders. When taking out term life insurance, add term critical illness cover, and enjoy up to 70% off the first-year premium for MyCover Plus! It provides protection against critical illness and death risks. 

Example: Corporate woman diagnosed with stage 3 breast cancer; after treatment, she prefers a pay cut in pursuit of work-life balance

Suppose a perfectionist executive, Daisy, unfortunately develops stage 3 breast cancer. The tumour is relatively large and has spread to the axillary lymph nodes. Treatment costs at a private hospital are extremely high, including surgery, breast reconstruction, chemotherapy, radiotherapy, targeted therapy and hormone therapy. According to the fee schedule of Gleneagles Hospital⁹, the relevant medical expenses would be at least HK$1,000,000.

Daisy devotes herself entirely to recovering. After resting for two years, she returns to the workforce, but her mindset has changed: she would rather accept a pay cut and earn several hundred thousand dollars less each year in order to pursue a better balance between life and work. This case highlights that a higher sum insured can better help policyholders meet the various needs of life after illness.

It is worth noting that the standard Voluntary Health Insurance Scheme provides a basic annual benefit limit of only HK$420,000, which is far from sufficient to cover this kind of expensive private treatment. Any amount above that has to be paid out of pocket, creating immense financial pressure. If she had previously chosen a mid- to high-end medical insurance plan, such as FWD’s vPrime Medical Plan (vPrime), which offers an annual benefit limit of up to HK$16.5 million, it would fully cover¹² a range of hospitalisation and surgical expenses, including cancer treatment, with no lifetime benefit limit. With a 10Life score of 9.7/10 (5-star rating), it could significantly reduce out-of-pocket medical expenses. By taking out FWD’s vPrime Medical Plan (vPrime) now, you can also enjoy a 70% discount on MyCoverPlus, providing cover for medical expenses while helping to offset daily living costs.

The above example is for reference only and is intended to illustrate the importance of the complementary roles of medical and critical illness insurance. 

1. What is the difference between medical insurance and critical illness insurance?

Medical insurance mainly reimburses actual medical expenses, such as hospitalisation, surgery and medication, based on the bill, and usually comes with a limit.

Critical illness insurance, by contrast, pays a lump sum (for example, 100% of the insured amount). It is not restricted by medical bills and can be used freely for living expenses, rehabilitation or family support, helping to bridge any shortfall in living costs.

2. What is the difference between term critical illness and whole-of-life critical illness? Which one is right for you?

Term critical illness cover (such as MyCover Plus) provides cover for a specified period as needed (for example, up to age 65). It is more affordable and has no savings element, making it suitable for younger people or those with a limited budget.

Whole-of-life critical illness provides lifelong cover. The initial premium is higher and it often includes a savings or investment element, making it suitable for those seeking long-term protection. Term plans are generally more flexible and offer better value for money.

* 10Life defines this type of high value-for-money term critical illness as: comprehensive cover (including at least one non-major critical illness benefit), clear policy terms, and an average annual premium at the specified age that remains at a reasonable level. 5 Star Insurance Awards Rating Methodology | 10Life 

Note:

1. Calculated based on the discounted first-year premium for a 25-year-old woman (attained age) taking out the “自主揀升級計劃 MyCover Plus (sum insured of HK$1,000,000 and 10-year renewal term)” on an annual premium basis. Standard premiums are non-guaranteed. The above premium does not include the premium levy. All underwriting decisions are subject to FWD Life Insurance Company (Bermuda) Limited, a limited company incorporated in Bermuda (“FWD Life”).
2. Hong Kong Anti-Cancer Society
3. Hong Kong’s Fourth Killer: What You Need to Know to Prevent Stroke
4. Based on statistics from the Census and Statistics Department, Table 210-06314: Median monthly employment earnings of employed persons by age and sex
5. Charge data for common inpatient treatment or investigation items at St. Paul’s Hospital
6. Hong Kong targeted drug price list 2026
7. [Claim denial secret weapon] Will the insurance company pay no matter how expensive the medical fee is?
8. [Breast Cancer] A comprehensive guide to symptoms, types, treatment and prevention
9. Gleneagles Hospital charges information
10. Voluntary Health Insurance Scheme 2025 Guide
11. If you are a Hong Kong taxpayer and take out insurance for yourself and specified relatives, you may be entitled to a tax deduction of up to HK$8,000 for the premium paid per insured person per year of assessment. Tax deductions are subject to the latest policies and regulations of the Inland Revenue Department of the Hong Kong Special Administrative Region (“IRD”) from time to time. For any tax advice, please refer to the IRD (www.ird.gov.hk/chi/) and the Voluntary Health Insurance Scheme website (www.vhis.gov.hk/tc/), or contact the IRD directly. FWD and its intermediaries will not provide any tax advice. If in doubt, you should consult a professional tax adviser.
12. Full cover means there is no sub-limit for individual benefit items, and it refers to the actual amount of eligible expenses and other expenses after deducting the remaining deductible, if any, subject to the annual benefit limit. Full cover applies only to designated benefit items, and other benefit items are not fully covered and are subject to the relevant item limits. Please refer to the benefit schedule and policy terms for details. Full cover is limited to reasonable and customary charges or expenses arising from medically necessary services; please refer to the relevant product brochure for the definitions of “medically necessary” and “reasonable and customary”.
The “MyCover Health Protection Plan” is a certified flex plan under the Government’s Voluntary Health Insurance Scheme (certified product number: F00045). The above product is underwritten by FWD Life (Voluntary Health Insurance product provider registration no. 00036).
The product information above does not include the full policy terms and is subject to the terms and conditions of the relevant scheme. For details of the features, benefits and full terms, exclusions and key product risks of the above product, please refer to the FWD website, the relevant product brochure and the policy terms. Before taking out insurance, please ensure that you understand the features of the relevant product and that it meets your needs. Customers have the right to purchase insurance products, including medical insurance products, as standalone policies, and may choose to buy them together with other types of insurance products without bundling.

The above content is sponsored and published/provided by FWD Financial Limited (Licence No.: FA2568) (“FWD Financial”), an insurance agency appointed by FWD Life. This advertisement is intended for use in Hong Kong only and shall not be construed as an offer to sell, solicitation to purchase, or provision of FWD Life’s insurance products outside Hong Kong. The sales and application procedures for this promotion must be carried out and completed within Hong Kong. 

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.