Residents of Singapore are advised to have a critical illness cover, especially if you have fulfilled your basic insurance needs and you can afford this kind of cover. This cover is designed to allow the insured person to receive a lump sum amount in case they are diagnosed with a critical or serious illness such as cancer, stroke, and heart attack, among others. However, every critical illness insurance policy is different and some offer a general cover against a long list of ailments while others target single diseases such as cancer or heart attack.
What critical illness insurance covers
This insurance covers heart attack, major cancers, and surgery for bypassing coronary artery, late-stage kidney failure, end-stage lung disease, and liver failure, among others. Before you opt for any plan, it’s advisable to check if an insurer’s plan includes what you want.
How critical illness cover work
In case you get diagnosed with any of the diseases that are included on the list, the insurance company pays you a lump sum amount. However, depending on the policy that you hold, this payment may be restricted to later stages of the listed disease. The amount payable is normally referred to as the sum assured and you choose the amount at the time you are signing up for the policy.
However, there are complicated plans that have complex payouts, which depend on different situations that are provided for by the terms and conditions stated in the policy. Take, for instance, some critical illness covers pay at various levels (multi-pay plans). With these plans, the insured persons don’t receive just a single payout, but various payouts that are provided by the policy.
For instance, you may get a fraction of the sum assured when you get diagnosed with a certain dangerous disease, and as it progresses, you get additional payouts, maybe at the intermediate or last stage of the disease. In some instances, if you are diagnosed with several recurring diseases, the policy might entitle you to multiple claims.
What if you already have life insurance, do you still need critical care cover?
Those who already have life insurance covers are the best for critical care insurance. Basic health insurance and life insurance are the most basic, and after you have these, you must channel your additional resources into getting critical care insurance.
Difference between life insurance, health insurance, and critical illness insurance
You don’t have to die to receive payouts for critical care insurance. As soon as a diagnosis is confirmed, and no matter its severity, you start receiving payouts from your critical illness cover. This is not the case for life insurance because you have to die first or become disabled before your dependents are paid.
Health insurance pays for medical costs if you get admitted to a hospital. It’s considered essential in Singapore because of high health care costs. The amount that is paid to the hospital from your care under the plan is final, and you don’t get other payouts to you individually under this cover.