Critical illness insurance for young adults: early protection for a worry-free future

In today’s world, many people actively pursue a healthy lifestyle through eating a balanced diet and getting plenty of exercise. By doing so, individuals hope to maintain good health and avoid illnesses. However, critical diseases can sometimes strike unexpectedly.

In the past few decades, there has been an increase in the number of younger individuals being diagnosed with common critical illnesses, such as cancer, heart disease and stroke. For instance, recent research indicates that the number of cancer cases among individuals under 50 has risen by almost 80% compared with three decades ago.

Globally, in 2019 alone over one million individuals under the age of 50 lost their lives to cancer. In addition, cases of sudden stroke or heart attacks among young people are not uncommon. It is crucial for young adults to understand the importance of critical illness insurance and not to underestimate the risks, despite having a relatively lower chance of developing such an illness due to their age. They should consider critical illness products while still young to ensure the well-being of both themselves and their families.

Most critical illness insurance products on the market provide a lump sum cash benefit in the event of a diagnosis, which assists the insured person in managing medical treatments and everyday expenses. Treating critical illnesses can take a very long time, with surgical expenses potentially reaching hundreds of thousands of dollars.

For young individuals who are at the beginning of their careers, such high costs can become a significant burden and can be difficult to cover immediately. Throughout the treatment period, they may also need to handle other expenses, and relying on family support may increase the financial burden on loved ones. Critical illness insurance can alleviate the challenges faced by young people in the unfortunate event that they suffer a critical illness by offering a cash benefit that allows patients and their families to maintain the lifestyle to which they are accustomed and focus on recovery.

In addition, most insurance companies’ critical illness insurance products are priced based on the insured’s age. Generally, premiums are less expensive for young individuals who secure coverage earlier. For instance, non-smoking males who apply for insurance between the ages of 30 and 34 commonly face approximately a 60% increase in premiums compared with those aged 25 to 29. Moreover, individuals who apply for insurance between the ages of 35 and 39 typically experience an increase of nearly 90% in their premiums compared with those aged 30 to 34. Therefore, securing insurance at a young age not only results in lower premiums but also provides protection earlier, adding to your peace of mind.

Many people hold the misconception that they can get insurance coverage for any illness they discover during a medical examination. However, this is not the case because known pre-existing conditions are not usually covered by insurance policies. Therefore, considering critical illness insurance only after an issue arises could mean missing out on a valuable opportunity.

Currently, there are various critical illness insurance products available on the market which cover more than twenty types of ailment. Young individuals can choose suitable insurance plans based on their needs and budget. Typically, the coverage scope of critical illness insurance includes common conditions such as cancer, stroke, sudden heart attack, coronary artery bypass surgery, kidney failure, Parkinson’s disease, multiple sclerosis and motor neuron diseases. Depending on personal requirements, additional coverage can be considered, including end-stage illnesses, paralysis, hearing loss, complete liver failure and loss of limbs.

Before opting for critical illness insurance, it is advisable for young individuals to carefully read the policy terms and understand the coverage scope, compensation conditions and the claim application process. Some critical illness insurance policies may require medical reports or health check-ups to ensure that the applicant meets the requirements of the insurance company. If there are any doubts, it is recommended to inquire with the insurance company to obtain more information.

As we get older, the likelihood of developing critical illnesses also increases. Therefore, young individuals should prepare in advance, be proactive, and learn about and purchase critical illness insurance at an early stage, so they can look forward to the future with peace of mind.

Finally, I wish everyone a Happy Winter Solstice and a Merry Christmas! May the coming year bring good health, and may each day be filled with joy and be worry-free.

This Chinese version of this article was published in the Hong Kong Economics Journal 

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