December 4, 2022

Moo Trade

Finance Blog

Why Consider Buying a Critical Illness Insurance in Singapore

If you can afford it, having critical sickness insurance is considered a good thing to have in Singapore. In contrast to health insurance or life insurance, which are recognised as essential for everyone, disability insurance is not often seen as a need.

As long as you’ve taken care of the essentials first, critical illness insurance should be on your shopping list.

What does “critical illness” mean?

The critical illness insurance is designed to pay you a lump sum payment in the event that you are diagnosed with a serious disease. In the end, the definition of a “severe sickness” does not fall within your purview.

Instead, the diseases covered by each critical illness insurance coverage are specific to that policy. A heart attack, a stroke, and terminal cancer are almost always included on the list of causes of death.

Each plan has a different set of illnesses that are covered. Others, such as cancer vaccines, are developed to target specific strains of the illness in order to maximise efficacy.

This raises the question of how solid this plan’s defences really are. The Life Insurance Association of Singapore (LIA) has published a list of 37 severe stage critical illnesses as part of its Critical Illness Framework 2019.

The list goes on and on, but some examples include advanced cancer, heart disease, a stroke, a heart attack, a coronary artery bypass operation, kidney failure, lung disease, and liver failure that have reached their last stages. Whether you want to know if a critical illness plan supplied by a certain insurer fulfils your requirements, you could compare it to the list published by LIA. Along with it there is also the domestic Maid Insurance.

How does critical illness insurance work?

Critical illness insurance frequently pays a set sum of money after you have been diagnosed with one of the diseases covered by your policy. In other cases, this may only apply if the diagnosis is established at a later stage of illness.

When clients ask about the “sum assured,” they’re talking about this one-time payment that they may opt out of.

Imagine that your policy offers complete coverage in the event of a heart attack, with a total amount insured of $200,000. In the case of a heart attack, you will be entitled for a $200,000 one-time payout.

This is the basic mechanism that makes everything operate. Other plans, on the other hand, offer more complex payment terms depending on the situation. You would also know about how to choose the right maid insurance in Singapore .

Some critical illness insurance policies, for example, provide multi-payment alternatives. There are several ways to maximise your plan’s payments, rather than just one. It’s possible that, if you’re diagnosed with an early or intermediate stage of a disease, you may be entitled to a part of your guaranteed payment. A special kind of insurance coverage may make this possible. To qualify for a second reimbursement, you must later be diagnosed with a disease that is in its advanced stages.

You may be entitled for several claims if you have been diagnosed with more than one serious disease. You may be able to submit many claims for compensation if you have a recurring sickness.

Conclusion

In order to get the full amount of insurance that you are entitled for, there may be more than one approach. Some plans allow you to file several claims for your coverage, giving you the opportunity to get more than 100% of your insured value. In order to do accurate comparisons, it is important to study the policy documents thoroughly and get familiar with the different payment options provided by the various plans.