A guide to mortality and critical illness coverage in Singapore

What is mortality protection?

Mortality protection coverage typically protects against financial loss by paying out a death benefit when the insured passes away. It usually also covers Total and Permanent Disability or Terminal Illness.

Types of coverage

• Term Insurance
• Whole Life Insurance
• Investment Plan

When assessing your needs and suitability, consider the following: 

• age
• coverage duration
• exclusions
• number of dependants

What is Critical Illness protection?

Critical Illness protection coverage provides you with financial protection if you are diagnosed with a major illness, and ensures that you and your family's needs continue to be met during the assumed CI recovery period of five years.

Types of coverage

• Standalone Critical Illness plan
• Rider (Supplementary benefit from a Mortality plan)

When assessing your needs and suitability, consider the following:

• conditions covered
• coverage duration
• exclusions (including family and medical history)
• personal financial standing

Is mortality protection necessary?

Mortality protection is necessary in financial planning as the payout is usually used for:

• Expenses incurred upon the insured's death (e.g funeral expenses)
• Mortage loan for family's home
• Financial security for family and protection for their standard of living

What is the difference between these plans?

MediShield Life and Integrated Shield Plans (IPs) vs. Critical Illness Plan

MediShield Life & IPs
Hospitalisation and surgical plans that provide coverage for inpatient, pre- and post- hospitalisation expenses

CareShield Life / ElderShield
Severe disability insurance scheme providing monthly payout for Singapore citizens and PRs

^{* "Severe disability" is the inability of an individual to independently perform at least three of the six Activities of Daily Living (ADLs) which are washing, dressing, feeding, toileting, walking and transferring, with or without mobility aids (e.g walking aids, wheelchair). This means that the individual will require the physical assistance of another person for the ADL. Source Ministry of Health (MOH).}

^{Source: LIA Protection Gap Study 2017}

Critical Illness Plans
Provide a lump-sum payout that can help cover all financial needs and obligations not covered under hospitalisation plans in the event of critical illness

Mortality coverage

Provides financial support for the family to sustain their lifestyle without major disruption

CI coverage

Alleviates financial distress in the event of major illnesses which can result in loss of income