[Breaking the norm] Is critical illness insurance always expensive? Affordable cover to fill the gap in your golden years

In their younger years, many people have spent more than half their lives striving for their careers and families. When their children have grown up and they are preparing to embrace their later years, if they do not want a sudden illness to affect their retirement quality of life, having sufficient critical illness cover becomes crucial. Yet at this point, they may realise that they did not arrange enough critical illness protection for themselves back then, which is a common situation for many middle-aged people. Given that buying critical illness insurance now may significantly affect retirement budgets and deter many people, Sun Life’s “萬家康卓越保” may be able to fill the gap by providing critical illness cover at an affordable premium, helping those nearing retirement welcome their golden years with ease.

As people reach middle age, they begin to worry about developing various health issues. Yet when they were younger, they may not have been able to fully anticipate just how sharply medical costs would rise. As retirement approaches, many do not want to face large expenses, but still want comprehensive protection so they can enjoy their later years with peace of mind and focus on family happiness. An affordably priced, comprehensive critical illness plan can help ease these worries.

With this in mind, Sun Life 永明 has launched the "萬家康卓越保" plan. It covers 188 insured illnesses, as well as 38 complex surgeries, providing protection for a total of 226 conditions — the most in Hong Kong¹ — and offers all-round protection against both known and unknown illnesses.  

Take a 45-year-old non-smoking male as an example. Assuming a cover amount of US$100,000 (approximately HK$780,000) with a 25-year premium payment term, the annual premium is US$3,526. This works out to just US$9.6 per day (around HK$75) for comprehensive protection. Should the insured unfortunately suffer multiple serious critical illnesses, there is no need to worry about insufficient policy coverage, as the total compensation under the "萬家康卓越保" plan can reach up to 7.6 times the original cover amount². 

Entering middle and later life, good health is the key to enjoying retirement. Yet illnesses often come in quick succession. Most critical illness products on the market also impose a waiting period after the first claim, leaving a gap in cover. If another critical illness arises shortly afterwards, there may not be sufficient support.

Sun Life永明的萬家康卓越保 understands the importance of flexible critical illness claims for retirees. This plan is the first to waive the waiting period between the three major non-identical critical illnesses, namely cancer, stroke and heart disease.⁵ It also simplifies 71 severe critical illnesses into three major groups, with the number of claims within each group calculated independently. There is no need to worry about the order of illnesses, offering multiple layers of protection and up to 5 claims in total.⁶

For example, if the insured person develops lung cancer at the age of 55, then unfortunately suffers a stroke during treatment, and a year after recovery is diagnosed with heart disease, each severe critical illness will still be covered at 100%, even if they occur one after another. If the insured person later develops kidney failure and Parkinson’s disease, as these conditions fall under different groups, the claims will not be affected by any earlier critical illness, and the insured person may also receive 100% cover for each condition separately.

At the same time, the plan ensures that if the insured person unfortunately develops an early-stage critical illness, future premiums for the next 24 months will be waived, allowing them to recuperate with peace of mind. If a severe critical illness is diagnosed, all future premiums will be waived immediately.

Generally, after a critical illness claim, the death benefit will be reduced to zero. However, Manulife VitalProtect Plus offers an optional “Death Benefit Restoration Benefit” supplementary benefit⁷, giving policyholders the flexibility to restore the death benefit to 25%, 50% or 100% of the original sum insured, to leave something for their family or to help make arrangements for their funeral.

From now until 30 June 2024, customers who purchase the SunWell series can enjoy premium refunds of up to 5 months. This offer is subject to terms and conditions. Please refer to the leaflet for details.

The product information mentioned in this article is for reference only and is merely a summary of the product. For details of the definitions, full terms and conditions, benefits and exclusions, and product risks, please refer to the product brochure and the specimen policy document. This article is intended for display/distribution in Hong Kong only, and shall not be construed as an offer to sell, an invitation to purchase, or the provision of any Sun Life Hong Kong product outside Hong Kong. If there is any inconsistency between this article and the policy document, the policy document shall prevail. 

Notes:

1. The “market leader” description of this product feature is based on a comparison, as at 25 April 2024, of critical illness plans offered by insurers carrying on composite and long-term business on new policies, as listed in the Register of Insurers authorised by the Insurance Authority.
2. The 760% of the original sum insured includes 100% of the original sum insured for early-stage critical illness cover, up to 60% of the original sum insured for additional comprehensive protection, 100% of the original sum insured for safety net major surgery cover, and 500% of the original sum insured for five critical illness cover.
3. Group 1 refers to the three common major critical illnesses, namely cancer, stroke and heart disease. Wan Ka Hong Excellence Protection can pay up to 3 claims, for a total of 300% of the original sum insured.
4. Groups 2 and 3 may each claim up to 1 time, and each may receive 100% of the original sum insured.
5. The “first in the market” description of this product feature is based on a comparison, as at 25 April 2024, of critical illness plans offered by insurers carrying on composite and long-term business on new policies, as listed in the Register of Insurers authorised by the Insurance Authority.
6. For critical illnesses under different groups, the number of claims for other groups will not be affected, but there must be a 1-year waiting period between diagnosis dates before a claim can be made.
7. This optional rider can only be applied for at the same time as the basic plan. The premium payment period for the optional rider must be the same as that of the basic plan.  

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.