4 Reasons to buy critical illness insurance in Singapore
Most of us tend to ignore the need for health-related insurance policies in our youth. Our efforts in this area are limited to taking a health insurance policy and then forgetting about it until we end up with a critical illness. As per Today, Singaporeans lack 80% of critical illness protection needs. According to the Life Insurance Association (LIA)’s 2017 Protection Gap Study, the average employed person here has about S$60,000 worth of critical illness coverage. But requires about five times the amount to ensure their families are well taken care of. These figures are indicative of the lack of critical illness insurance coverage among Singaporeans.
A lot of you might say that you already have a health insurance plan in place, then why opt for a critical insurance plan separately? Well to understand this let’s take a look at some of the benefits you get when you buy critical illness insurance in Singapore.
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Covers medical expenses of critical illnesses
Firstly, a health insurance policy is very different from a critical illness insurance policy. The former provides cover for your hospitalization expenses. Let’s say you get admitted in the hospital for your first round of chemotherapy, and then you can use your health insurance cover to reimburse all your medical bills. And the health insurance policy benefit ends there. But then what happens next? You would require money to hire a helper at home. You will most likely not be earning and you might have to sustain your lifestyle along with your medical expenses.
How will you arrange for funds then? The beauty of a critical illness plan is that your insurance provider will pay out a tax free lump sum amount the moment you are diagnosing with a pre-specified critical illness. This way you will be able to use those funds for all your expenses while you go through the agony of being critically ill.
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Can help you with post-treatment expenses
We clearly covered this in the previous section. But just to give you some insight here is another example. Bryan is an entrepreneur in Singapore and co-owns a street food stall. With an annual income of S$20,000, he is still in the process of reaching his breakeven. Bryan is married and is the sole breadwinner in his home.
After repeated episodes of gastric problems, he got himself tested and found out that he is at stage 2 of stomach cancer. His health insurance and medishield policy did cover his hospital bills but post chemo sessions. His exhaustion rendered him in no state to work at his food stall. Thankfully, he knew that this was the time to use his rainy day funds and the critical illness insurance he had taken early on. Funds from these two sources ensured his household and medical expenses are covers. Bryan and his wife could breathe easy only because they didn’t just rely on the health insurance and term insurance plan. But that also opted for an early critical illness insurance plan that paid for his intermediate stage expenses as well.
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Other benefits
Financial companies are aware that a critical illness not only affects your physical health but your financial health as well. Critical illness insurance plans provide you with financial support. Therefore, you have your peace of mind while you focus on recovering from your medical condition. Certain critical illness plans can cover you at the early, intermediate, and the severe stage. You need to watch out for this provision in the insurance plan you chose. To add to that, you can claim for more than 2 critical illnesses as covered in the special benefits section of your plan. The critical plan offered by HSBC, covers close to 102 conditions. And it provides a 100% payout even for an early stage critical illness.
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Preventive care and early intervention are more likely when you have critical illness insurance
Although this applies to your health insurance policy as well, it is important to note that a critical illness plan gives you the financial support you need for your non-medical expenses as well. Unlike health insurance, you are giving a lump sum amount and are free to use it the way you want to. While your health insurance takes care of the medical bills.
You can use the funds from your critical illness insurance plan to support your lifestyle requirements when you are unable to work. And if you have opted for an early critical illness plan, then you can use the money you get for your treatment as well. A critical plan ensures that you are not left high and dry when you are diagnosing with a severe condition. It effectively reduces the threat of your life going haywire because of the serious medical condition you are dealing with.
Ideally, you should opt for both health insurance as well as a critical illness plan. Both the policies in conjunction can provide you with the kind of coverage you need at a time of a medical emergency.
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