Some Singaporeans may view critical illness insurance (also known as CI plan) as less essential than hospitalisation or whole life plans, but the reality might surprise you. Jump straight to our quiz to test your knowledge on critical illness insurance and find out if you're adequately covered.
A CI plan typically provides a lump-sum payout upon diagnosis of a serious illness. While there are many CI plans available, they all cover a specific range of critical illnesses such as heart attack, stroke and late-stage cancer which are also known as the “Big 3”. It's important to review your CI plan to confirm your plan's coverage (what conditions are covered etc.) and that your coverage amount is sufficient for your life stage.
Think of it as complementary to your other health plans. While a Shield plan takes care of your hospitalisation charges, the payout from your CI plan can help to make up for any loss of income. Whether it’s taking time off work to recuperate or covering additional costs like transport to the hospital, medication, or modifications to your home, a CI plan can help alleviate these unexpected expenses.
Here are some real-life stories of how a CI plan has benefited Singaporeans who were suddenly faced with a critical illness diagnosis.
Quiz time!
Time to use those critical thinking skills to see if you can crack this critical illness quiz! Hint: Check out our intro to critical illness insurance for answers to some of the tricky questions 😉.
Lower income groups are more likely to be underinsured against critical illness. True or false?
Answer: False
The hard truth is that higher income groups are more likely to be underinsured against critical illness as they might not have increased their CI coverage to match their income. According to Singlife’s 2024 Financial Freedom Index, 76% of affluent individuals (with household incomes above S$20,000 a month) face the biggest gaps in coverage.
According to the Life Insurance Association, a working adult should have CI coverage of approximately four times their annual income.
Answer: False
The hard truth is that higher income groups are more likely to be underinsured against critical illness as they might not have increased their CI coverage to match their income. According to Singlife’s 2024 Financial Freedom Index, 76% of affluent individuals (with household incomes above S$20,000 a month) face the biggest gaps in coverage.
According to the Life Insurance Association, a working adult should have CI coverage of approximately four times their annual income.
If I already have a hospitalisation plan, I don’t need a critical illness plan.
Answer: False
The two insurance plans serve different purposes. A hospitalisation plan covers expenses like surgery and hospital stays, while a CI plan provides a lump-sum payout that can be used for income replacement, daily living expenses during recovery and anything a hospitalisation plan does not cover.
Having both forms of coverage provides comprehensive protection, so you have peace of mind no matter what life throws at you.
Answer: False
The two insurance plans serve different purposes. A hospitalisation plan covers expenses like surgery and hospital stays, while a CI plan provides a lump-sum payout that can be used for income replacement, daily living expenses during recovery and anything a hospitalisation plan does not cover.
Having both forms of coverage provides comprehensive protection, so you have peace of mind no matter what life throws at you.
Which of these conditions is commonly considered a critical illness under most insurance plans in Singapore?
Answer: Alzheimer’s Disease
Alzheimer’s disease, which is listed on the Life Insurance Association Singapore’s standard definitions for severe-stage critical illnesses, is the most common cause of dementia. Although it doesn't claim as many lives as cancer, heart attack or stroke, it's a rising concern, with over 100 Singaporeans as young as 40 being diagnosed with young onset dementia1 each year.
As dementia progresses, one might need help with the six activities of daily living (ADL). A long-term care plan such as Singlife CareShield Standard and Plus that provides monthly payout when one is unable perform ADLs can supplement the lump-sum payout from your existing CI coverage as conditions like Alzheimer’s may necessitate lifelong management.
Answer: Alzheimer’s Disease
Alzheimer’s disease, which is listed on the Life Insurance Association Singapore’s standard definitions for severe-stage critical illnesses, is the most common cause of dementia. Although it doesn't claim as many lives as cancer, heart attack or stroke, it's a rising concern, with over 100 Singaporeans as young as 40 being diagnosed with young onset dementia1 each year.
As dementia progresses, one might need help with the six activities of daily living (ADL). A long-term care plan such as Singlife CareShield Standard and Plus that provides monthly payout when one is unable perform ADLs can supplement the lump-sum payout from your existing CI coverage as conditions like Alzheimer’s may necessitate lifelong management.
How many payouts does a CI plan provide?
Answer: It depends on the plan
Most CI plans offer a single lump-sum payout before coverage ends but plans like Singlife Multipay Critical Illness provide multiple payouts up to 900% of the sum assured for different stages of critical illnesses. This can be particularly useful for conditions like dementia, where ongoing care is needed. To further enhance your coverage, consider adding Singlife Dementia Cover, which offers payouts for cognitive decline that can help cover costs like daycare or caregiver support."
Answer: It depends on the plan
Most CI plans offer a single lump-sum payout before coverage ends but plans like Singlife Multipay Critical Illness provide multiple payouts up to 900% of the sum assured for different stages of critical illnesses. This can be particularly useful for conditions like dementia, where ongoing care is needed. To further enhance your coverage, consider adding Singlife Dementia Cover, which offers payouts for cognitive decline that can help cover costs like daycare or caregiver support."
CI insurance serves the same purpose as cancer treatment insurance.
Answer: False
While CI insurance covers cancer plus other critical illnesses and gives a lump sum that you can use any way you wish, cancer treatment insurance like Singlife Cancer Cover Plus II supplements your hospitalisation plan by covering large medical bills from cancer-related treatments, including those that are not on the Cancer Drug List and even treatment overseas.
Answer: False
While CI insurance covers cancer plus other critical illnesses and gives a lump sum that you can use any way you wish, cancer treatment insurance like Singlife Cancer Cover Plus II supplements your hospitalisation plan by covering large medical bills from cancer-related treatments, including those that are not on the Cancer Drug List and even treatment overseas.
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Notes
1. Source: The Straits Times, 'Young onset dementia: Growing group faces financial, social challenges", accessed on 12 March 2024
This adviertisement has not been reviewed by the Monetary Authority of Singapore
