What Do Critical Illness Plans Cover?

What is a critical illness plan?

To put it simply, a critical illness plan is a type of insurance that will give you a lump sum pay-out, in the event the policyholder is diagnosed with a specific critical illness. This plan can only cover illnesses that are considered “critical” in Singapore. This type of insurance is generally considered to be a companion to health insurance that usually only covers your medical costs. The difference between critical illness insurance and a health insurance plan is that the latter does not cover any loss of income, such as taking time off work due to an illness or additional costs like transportation to the hospital or health supplements.

Coverage  of hidden costs

So, if you’re looking for coverage of such additional, or ‘hidden’ costs, a critical illness insurance policy would be the best option for you. Even though it is seen as an addition to a health insurance plan, it generally covers more of the cost, and we would recommend you opt for one, alongside your existing insurance. For your convenience, this specific plan is also available as an add-on to your term life insurance.

A common mistake that many people make is assuming that a standard health insurance policy will offer complete protection. Nobody takes into account the exorbitant costs of treating life-threatening illnesses that, generally, most insurance plans fail to cover. With a critical illness insurance plan, you won’t have to worry about giving up all your savings.

What do critical illness plans cover?

When you think of critical illnesses, the first thought that comes to your mind would be illnesses like cancer. Moneyline Singapore is here to inform you that there are many more illnesses that fall under the spectrum of critical illnesses. Singapore recognises over 30 other conditions under this category, like heart attacks, strokes, lung disease, and liver disease, to name a few. These are all covered by critical illness plans. To be precise, the Life Insurance Association of Singapore has compiled a list of 37 critical illness diagnoses that fall under this classification and are all currently covered by most insurance companies. So you can see why purchasing one would be the barrier that saves you from financial ruin, and may well be what saves you from an untimely death as well.

An early critical illness insurance policy, however, is bound to cover more illnesses and ailments than the typical standard of 37 critical illnesses defined by the Life Insurance Association of Singapore. As the name suggests, an early critical illness insurance plan gives the policyholder  a large cash benefit if they happen to be diagnosed during the early stages of a fatal illness. Rapid technological advancements have made it possible to diagnose ailments almost as soon as the symptoms appear. This is why it is also beneficial to opt for an early-stage plan. This way, you have the freedom and peace of mind to recover from your illness without the heavy burden of massive costs and long-term expenses. The added bonus being  it will cover all your medical bills and fees.

Critical life insurance benefits

The biggest plus side of a critical illness plan is that what it covers is up to you. You can choose to get a payout for any  household bills, utility bills, grocery bills, mortgage bills, and even medical bills that are not fully covered by your health insurance. If ever you become too incapacitated for employment, once you are insured with a critical life insurance plan, you need not worry too much. You will be at liberty to use the payout however you see fit to allay some of your financial worries.

The best critical illness insurance plan

If you are worried about losing your life savings due to an avoidable circumstance such as a life-threatening illness, worry not! Moneyline Singapore has put together a list of the best critical illness insurance plans available in Singapore. Contact us now for more information and we will be happy to help you select a critical illness plan that best fits your requirements and budget.