What does critical illness insurance cover?

 You may have heard friends and colleagues discuss about critical illness insurance plans in Singapore. You may have wondered whether you need critical illness insurance at all. The answer is a definite YES! Curious to know why? Read on to discover what a critical illness insurance plan can do for you. 

What is critical illness insurance?

A critical illness insurance plan pays the insured individual a lump sum amount if they are diagnosed with any of the critical illnesses mentioned in the plan. A good critical illness insurance plan will cover you up to the age of a 100 years and offer good room for customisability through supplementary benefits. Some of the supplementary benefits that you can opt for include –

ü  Coverage against relapse and recurrence of a critical illness

ü  Coverage against early stage critical illnesses

ü  Coverage against certain severe illnesses

ü  Waiver of premiums for a year if one’s spouse is diagnosed with a critical illness

ü  Monthly cash payouts up to S$5000 upon diagnosis of a critical illness

ü  Additional lump sum payout given as death benefit

You can opt in for supplementary benefits as per your requirement so that your critical illness insurance plan is in tune with your evolving needs for coverage. 

What kind of diseases get covered?

Life Insurance Association Singapore (LIA) has outlined 37 critical illnesses that need to be covered by insurers. These include major cancer, coma, end stage kidney failure, benign brain tumour, major burns, heart attack, end stage lung disease, end stage liver failure, muscular dystrophy, terminal illness, and loss of independent existence, among others.

Why is it important to buy critical illness insurance?

Critical illness insurance offers you much needed financial protection during a difficult period when you are diagnosed with a serious disease. If you are unfortunately diagnosed with a disease such as cancer, you may not be able to work for some time. The payout that you receive can help you afford treatment, run your home and pay your bills even in the absence of an income.

In addition, the payout from critical illness insurance can also be used to fill any existing gaps in your medical insurance coverage. For instance, if you are only covered by MediShield Life, you can only claim a maximum of S$3000 per month for chemotherapy. Any expenses in excess of this will need to come from your own pocket. Your critical illness insurance payout can help you afford such expenses. This way, you can focus on your treatment while the insurance helps with the heavy bills.

It is advisable to speak to a financial consultant for help in choosing the right critical illness plan for your needs. They can help you calculate your expenses and arrive at the right amount you need for coverage. You may also want to consider taking a cancer insurance plan that offers coverage for all stages of cancer with 100% payout of the sum assured.

We hope that this has been a helpful read. Take care.