Hey everyone,

I’m sharing a little story about why Critical Illness Insurance is so important, especially in today’s world where healthcare costs are through the roof and serious health issues are way too common.

What Does Critical Illness Insurance Cover?

Imagine this: you’re living your life, everything’s going great, and then bam—out of nowhere, you get hit with a serious health issue. It could be cancer, a heart attack, kidney failure, or a stroke. Scary, right? That’s where Critical Illness (CI) insurance coverage comes in. It gives you a lump sum of money if you’re diagnosed with one of these conditions.

Back in the day, it used to cover only the really bad stuff, but now it covers every stage—early, intermediate, and major stages, plus any relapses. Having a solid CI plan is crucial because it helps you get the best treatment possible, giving you a better shot at a full recovery.

In Singapore, the Life Insurance Association (LIA) has standard definitions for 37 severe-stage critical illnesses. But remember, each insurer may cover different things, so always check your policy.

Did You Know?

Let me throw some facts at you:

Cancer: 1 in 4 Singaporeans will get cancer. (Source: Singapore Cancer Society)
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Heart Disease: On average, 34 people have heart attacks, and 23 die from heart disease every day in Singapore. (Source: The Straits Times)
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Diabetes: Singapore has the second-highest proportion of diabetics amongst developed nations. More than 90% of cases are Type 2. Diabetes can lead to serious complications, upping the risk of stroke, heart attack, and kidney failure. (Source: The Straits Times, World Health Organisation)
[https://www.straitstimes.com/singapore/singapore-is-no-2-nation-with-most-diabetics-5-things-about-diabetes]

Multiple Illnesses: A survey by AIA Group shows that 97% of people diagnosed with a critical illness worry they might get another, and 32% are already diagnosed with more than one critical illness.

Why Do You Need Critical Illness Insurance?

Financial Protection: Critical illnesses can lead to huge medical bills. This insurance gives you a lump sum payout to help cover these costs, so you don’t have to drain your savings or incur debt.

Income Replacement: If you can’t work because of a critical illness, the insurance payout can help replace your lost income, letting you focus on getting better without worrying about money.

Peace of Mind: Knowing you have a financial safety net can reduce the stress of dealing with a critical illness, allowing you to concentrate on your recovery.

Flexibility: The lump sum payment gives you the freedom to use the money however you need, whether it’s for treatment, rehabilitation, or adapting to new lifestyle changes.

Conclusion

With medical costs rising, treatments are getting more expensive over time. Hospitalisation plans may cover some of the bills, but they will not help with the loss of income. Critical illness insurance is a key part of a solid financial and health protection strategy. It offers a safety net to handle the financial challenges that come with serious health issues. By securing critical illness coverage, you ensure that you and your loved ones are protected from unexpected costs, so you can focus on what truly matters: your health and recovery.

Written by Valerie, Financial Services Consultant