Understanding How Critical Illness Insurance In Singapore Works

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Before understanding how it works, you need first to ask yourself, what is Critical Illness Insurance? Although often confused with health insurance, critical illness insurance helps you get a good amount of money if you get diagnosed with any critical illnesses. Cancer, kidney failure, heart attack, strokes – all of these medical hazards fall under the category of critical illness. Each country has its own set of rules when it comes to insurances that protect you from critical illnesses.

The insurance policy has rules which are determined by the Life Insurance Association in Singapore. Under their rules, 37 illnesses have been categorised as critical illnesses. However, there might be small variations in the type of critical insurances offered by the Singapore insurers.

Key factors that you should keep in mind

There are certain factors that you need to keep in mind if you want to purchase critical illness insurance Singapore. These are:

  1. The policy agreement paper is highly critical. Your agreement should mention the type of critical illnesses or the type of surgeries you need the critical illness insurance will cover that.
  2. There are often waiting periods with some kind of critical illness. During this waiting period, if you decide to opt for surgery, the cost will not be covered by these insurances.
  3. In case one is diagnosed with early stages of cancer, he or she might receive a lower amount of money than someone in an advanced stage. However, this is not fixed and differs from one insurer to another.

Choosing the right amount

It can be a tough decision to assess the amount of money one wants for critical illness insurance. But there are a few ways through which you choose the right amount. These are:

  • By Calculating five years of income

It is advisable to calculate your last five years’ income to choose the right amount for critical illness insurance. However, it would help if you deduct all the liabilities and debts before you come to the final amount. You have to fix the amount of keeping your income in mind. Do not forget to consider the number of members in your family and your family lifestyle while fixing the right amount.

  • Life Insurance Association Singapore’s Recommendation

LIA believes that everyone should have tailor-made critical illness insurance amount that is suitable for them and their family. Hence, they issue recommendations to help you make the right choice. The average amount in Singapore for Critical Illness Insurance is $316000. This amount should only be used as a reference, not as a final goal. In case you have other earning members in your house, you can afford to reduce the coverage amount after consulting with a financial advisor.

  • Keeping the dependents in mind

You have to keep in mind the welfare of others in your family when choosing the coverage amount for critical illness insurance. In case you have a small child, it is advisable to get a critical illness insurance coverage that protects him/her till he/she is an adult. If your spouse is a homemaker, you need to keep his/her best interests in mind as well.

How long should your critical illness insurance last?

According to the latest reports in Singapore, critical illness insurance, on average increased as life expectancy increased. Moreover, critical illness insurance should extend beyond retirement age. Even if you do not need it, your family can use the amount even after your death.

Why should you not skip buying critical illness insurance?

A lot of you might feel that health insurance is enough to cover recovery from critical illness. But that is not true. There are a lot of reasons why buying critical illness insurance is important in your life in Singapore. These reasons are:

  • Savings is not enough

If you live in Singapore, you are well aware that it is an expensive place to reside in. You should not feel that recovery from critical illnesses is similar to recovery from any other illness. You will need a wide range of treatments to help you combat with critical illnesses. Moreover, you would also require asking for different opinions and hiring a team of doctors. Your savings will not be enough to cover your critical illness treatment costs. In case you are a cancer survivor or have had a stroke, you need to hire a private nurse to look after you. Agencies can charge a lot, and it can drain all your savings over a long period of time. Having critical illness insurance helps you to survive such situations.

  • Easier to get when healthy

Critical Illness Insurance is easier to purchase when you are young and healthy. You might feel that you do not need it, but many people from the younger generation in Singapore have invested in it. It is difficult to get one once you get diagnosed with a critical illness. Even if you are able to secure one, your coverage amount gets reduced, or you would have to pay high premium amounts.

  • Chances of getting critically ill are high

A lot of people from Singapore suffer from critical illness. There is no fixed age for it. Singapore is a busy place, and while running to achieve your goals, your health is often ignored. This can lead to severe illnesses. You cannot stop working, but you can be well prepared. Purchasing critical illness insurance helps you to be prepared.

Now that you are well aware of critical illness insurance in Singapore, what are you waiting for? Time to look for the HLAS Insurance. You need to purchase critical illness insurance as soon as possible. Not only for yourself but your entire family as well. You need to start looking out for it when you are young. This will ensure that you won’t face any trouble after retirement. You can look up online in case you are confused about which one to get. There are a lot of reviews that can help you to make a choice.

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