Friends Provident International (FPI) published the results of a survey today citing that just over half of expatriates had no critical illness protection.
More than twice as many expats as locals – 36% vs. 17% – were said to be unaware of the amount needed to cover their critical illness expenses. Even more were found to be unsure about the annual salary needed to support medical expenses and maintain their families’ living standard.
For those respondents without critical illness cover in place, 21% of them thought their savings would be enough to cover their medical expenses, while 39% were uncertain about the expenses to expect.
Critical illness insurance provides income protection in the form of a lump sum cash payment, offering flexibility in managing their expenses during recovery or a treatment period.
Tangible concept
“Individuals should not ignore the potential risk of being diagnosed with critical illness,” said James Tan, managing director for Asia at FPI, before advising individuals to seek advice from professionals to ensure they receive accurate assessment.
FPI argued that equal weight should be given to life and critical illness cover. Tan said: “Most people, especially expatriates, focus heavily on protecting their income, because losing their job is a more tangible concept than developing critical illness.
“However, should they be unfortunately diagnosed, they might lose the ability to work.”
Ignoring their vulnerability
Charlotte Dilworth, regional protection development and underwriting manager, said: “Expatriates should not ignore their vulnerability and it is not only important to have critical illness cover in place, but also the right one considering their mobility and special needs.
“Consulting their advisers and reviewing their plans on a regular basis are important steps to put things into perspective.”
