As people cannot anticipate when a health emergency might strike, critical illness insurances are becoming increasingly popular options to protect individuals from both health problems and financial stress.
But with so many options in the market, how can people pick what suits them best?
First of all, a critical illness insurance plan is a form of a policy that provides coverage when a person gets diagnosed with a major critical illness. A major stage of critical illness would be any of the 37 ailments listed under The Life Insurance Association (LIA) website.
With this insurance, plan owners will receive a lump sum that can be used for whatever they may need.
It can be considered as a supplement to health insurance policies: health insurance policies cover hospitalization bills and medical expenses, but it won’t provide compensation for any loss of income.
According to a Straits Times article, the average Singaporean has a critical illness insurance gap of $256,000, or the estimated “lost earning” when workers need to leave work to recover.
That is where critical illness (CI) insurance comes in handy – it covers financial gaps related to a plan holder’s recovery and other non-medical expenses.
That said, individuals can use a CI insurance plan for:
- Non-medical costs related to the illness such as child care or domestic helper
- Compensation for any loss of income during the recovery period
- Funds for daily living during recovery
- Therapy sessions
- Health supplements
So, worries about losing income or incurring additional expenses due to critical illness can be addressed by getting a Critical Illness insurance plan.
- Highly affordable premiums. $275.50 starting annual premium
- Additional $20,000 death benefit
- Full payout for all stages of cancer, heart attack of specified severity, or stroke with permanent neurological deficit
|Amount Insured||Age 25||Age 35||Age 45||Age 55|
Note: Premiums shown are 1st-year premiums with a 25% discount applied
If an applicant is looking for more coverage than cancer insurance, then this critical illness insurance plan is a great choice. It’s a basic plan that covers the most common critical illnesses: cancer, heart attack, and stroke.
- $750.60 starting annual premium
- Full pay-outs for all stages of diagnosis
- It covers 132 conditions across various stages of critical illnesses, including cancer, heart attack, stroke, and diabetes.
- Additional special conditions benefit that can be claimed up to 6 times
- Premiums don’t increase with age
- Death benefit
|Benign and Borderline Malignant Tumour Benefit||Additional 20% of the Sum Assured or up to $25,000 (or equivalent currency) per life|
|Intensive Care Benefit||Additional 20% of the Sum Assured or up to $25,000 (or equivalent currency) per life|
|Special Benefit – an additional payout upon diagnosis of any of the covered 27 special conditions.||Additional 20% of the Sum Assured or up to $25,000 (or equivalent currency) per life per condition|
|Death benefit||$5,000 (or equivalent currency)|
|Choice of the coverage period||From 10 years and up to 99 ANB|
|Choice of currency||SGD, USD, GBP, EUR, AUD and HKD|
This critical illness plan is great if an applicant prefers receiving a lump sum the moment he or she is diagnosed. They offer full pay-outs regardless of the stage. Additionally, plan holders can get the pay-out in their choice of currency.
- Affordable multi-pay plan
- $1,428 starting annual premium
- Unlimited claims payout up to 600% sum assured
- Coverage for re-diagnosed cancer
- Free diabetes care program
- Death benefit
|Entry Age||Life Assured: 1 month to 70 years old
Policy Holder: 18 to 99 years old
|Flexible Sum Assured||Minimum: $50,000
|Policy Terms||To age term: to age 50, 55, 60, 65, 70, 75
Renewable term: 5, 10, 15, 20, 25, or 30 years
|Maximum coverage age||Up to 99 years old|
AXA Super CitiCare is a multi-pay critical illness plan. This means AXA plan holders will receive more than one payout. It promises unlimited claims payout and gives customers a total coverage of up to 600% of the sum assured.
This gives insurance holders peace of mind since many critical illnesses are recurrent. Their premiums start from $125 per month. And it has a free diabetes care program as well.
The downside? It has a maximum policy age of 75 years old, and plan owners would have to wait a year between each claim.
- It covers 53 critical illnesses; 25 juvenile conditions; death, terminal illness, and total and permanent disability
- The affordable premium for the level of coverage
- Riders can be purchased to extend coverage to parents.
- The maximum payout for parents up to 15% or $15,000 (whichever is higher)
- Free coverage for children up to 25% sum assured
|Amount Insured||Age 25||Age 35||Age 45||Age 55|
Great Eastern’s GREAT Family Care plan would be perfect for people looking for a critical illness insurance plan for the whole family. It’s the first multi-generational CI insurance plan in Singapore, providing coverage against 53 critical illnesses.
On top of that, it also offers free coverage for a plan holder’s children up to 18 years of age. Children will receive 25% of the parent’s sum assured. Despite the wide coverage, the premium is still affordable starting at $77 per month.
However, this CI insurance plan does not cover early-stage diagnoses. That said, it’s a great choice if an applicant is looking to cover the whole family in one policy.
- Wide coverage for 175 conditions
- $1,819 starting annual premium
- Power Reset Benefit fully restores coverage amount.
- Power Relapse Benefit allows you to claim up to 200% of the coverage amount for relapses under the five selected critical illnesses.
- Multiple claims of up to 500% of your coverage amount.
- “Pre-early” plus special benefits (up to 10 claims)
|Plan Options||Coverage Age||Guaranteed Cash Value|
|AIA Power Critical Cover Value Plan||Up to age 75||N.A.|
|AIA Power Critical Cover Life Plan||Up to age 100||Maturity Benefit (at age 100): 100% of your sum assured less any critical illness benefits paid
Surrender Benefit: 75% to 99% of your sum assured less any critical illness benefits paid
AIA Power Critical Cover is a premium plan that offers coverage against 175 conditions. It also covers special conditions like ADHD, diabetic complications, and Autism Spectrum Disorder. Plus, people can also claim a full payout regardless of the illness stage.
Since this CI illness insurance plan is a premium policy, the lowest tier starts at over $191 per month. The premium may be high but people will be covered against a wide spectrum of illnesses.
Its two main unique features are the Power Relapse and Power Reset. The former lets an insured person claim up to 200% of your sum assured for relapses, although it has a 2-year waiting period after the last claim.
The Power Reset on the other hand allows a plan holder to claim for different and subsequent critical illnesses. There’s a 1-year waiting period before people can claim a payout again, which goes to around 500% of the sum assured.
While critical illness insurance plans are hot in the market, there are still financial minds who do not advise getting such insurances. Here are some of the reasons why:
- High premium cost. And aside from that, applicants will only get the lump sum when a critical illness is diagnosed. The doctor must confirm that the illness concurs with the applicant’s policy’s coverage. In other cases, no payment is made.
- Some critical illnesses are not covered. Some people overestimate their risk of getting any of the big three critical illnesses. But other major health emergencies are also very expensive.That said, when choosing a CI insurance plan, people must understand what illnesses are covered and what benefits are available in case of a serious medical condition.
- Higher premium for individuals with a pre-existing condition. Some critical illness policies charge higher premiums as a person ages. While other policies have a maximum coverage age – just when a plan holder may need it most.
Critical illness insurance is a good investment. This is especially true for those who have a hereditary or genetic predisposition to illnesses, for example, when an applicant’s family has a glaring history of cancer, heart disease, or diabetes in your family.
However, the best critical illness policy depends on a person’s needs.
The premium will likely be high, but the opportunity costs from possibly losing income during recovery should be considered as well. That being said, people should take time in checking their coverage while comparing it with traditional insurance.
And lastly, applicants know the payouts and benefits one may receive if they are diagnosed with a critical illness.
If there are individuals who need assistance in financing high premiums for insurance, then A1 Credit personal loan services may be of great help. A1 Credit personal loan services has been a reliable licensed moneylender that provides fast and convenient financing solutions.