Healthcare expenses have been growing higher and higher. Likewise, treatment costs of critical illnesses like prostate cancer and breast cancer (two of Singapore's most common critical illnesses) have also been on the rise. Critical illnesses are certainly a threat to all of us, especially because 39 Singaporeans are being diagnosed with them every single day.
Although Singaporeans already have Medishield and Medisave to cover their healthcare expenses, these two are often not comprehensive enough to adequately cater to all your healthcare needs - especially when it comes to critical illnesses. In this article, we will show you how you can fill in these gaps and better protect yourself against critical illnesses.
What are Critical Illnesses?
Critical illnesses (CI) can also be known as terminal illness or dread disease, depending on the insurer. These critical illnesses include stroke with permanent neurological deficit, heart attack of specified severity and major cancer. As of 2020, these are the 37 critical illnesses covered under CI insurance
Stroke with Permanent Neurological Deficit
Irreversible Aplastic Anaemia
Coma
Irreversible Loss of Speech
Multiple Sclerosis
Open Chest Surgery to Aorta
Motor Neurone Disease
Benign Brain Tumour
Angioplasty & Other Invasive Treatment for Coronary Artery
Paralysis (Irreversible Loss of Use of Limbs)
Persistent Vegetative State (Apallic Syndrome)
Poliomyelitis
Major Cancer
Coronary Artery By-pass Surgery
End Stage Lung Disease
Deafness (Irreversible Loss of Hearing)
Major Burns
Muscular Dystrophy
Alzheimer’s Disease / Severe Dementia
Primary Pulmonary Hypertension
Severe Encephalitis
Blindness (Irreversible Loss of Sight)
Terminal Illness
Systemic Lupus Erythematosus with Lupus Nephritis
Loss of Independent Existence
Heart Attack of Specified Severity
End Stage Kidney Failure
End Stage Liver Failure
Open Chest Heart Valve Surgery
Major Organ / Bone Marrow Transplantation
Idiopathic Parkinson’s Disease
Fulminant Hepatitis
HIV Due to Blood Transfusion and Occupationally Acquired HIV
Severe Bacterial Meningitis
Major Head Trauma
Progressive Scleroderma
Other Serious Coronary Artery Disease
How Insurance can Protect You
A lump sum after diagnosis can be received if your illness is covered by the CI Insurance policy. This lump sum will be beneficial as it can provide you with immense financial support while you focus on getting better. Nevertheless, there are still a few things to understand about CI insurance:
Medical expenses do not influence the lump sum
Benefits are only provided if the illness matches the definition given in the policy
There may be a waiting time for specific forms of surgeries and illnesses. If you had investigations for, suffered any symptoms of, or any illness is diagnosed during the waiting period, your benefits may be withdrawn from you
The purpose of insurance is to protect you and your family get through financial turmoil should you have to stop working due to a critical illness. Additionally, CI insurance can help to lessen the extra expenses that come with critical illnesses; expenses that are not typically covered under existing health insurance plans.
Coverage
CI insurance coverage varies from insurer to insurer. Also, coverage depends on the type of illness, the stage of illness, and also the number of critical illnesses. I admit, CI insurance can get confusing.
A good way to understand the coverage of CI insurance is to take a look at the list of 37 industry-accepted critical illnesses that was provided above. Take note - some insurers do not cover all 37 illnesses.
Another way of understanding CI insurance coverage is to look at examples of real policies. An example of a critical illness plan that you can refer to is Manulife's Critical SelectCare or Singlife's Critical Illness Insurance - insurance plans that cover not just critical illnesses, but also other health challenges too.
Is Insurance a Must?
For many who are still healthy and young, the thought of suffering from a critical illness may not even cross their minds. It is normal that we assume that we can always fall back on Medishield and Medisave to save us. However, when we are suddenly struck with a critical illness without CI insurance to help us, we will be in deep trouble.
Apart from the expenses incurred from surgeries and hospital stays, and even the aforementioned plans, there are other costs to consider. In order to make the best choice, we need to take into account these pros and cons:
PROS
Fills in the gaps in coverage left behind by MediSave and MediShield Life
No taxes for payouts
Pays out a lump sum
Some plans can be combined with life insurance protection
The younger you are upon application, the more affordable it is
CONS
The older you are, the more expensive the premiums are
Can be difficult to understand as it includes a lot of medical jargon. Policies differ from one another, and not all illnesses are covered. Coverage is also depends on the policy. It is best to consult an advisor, as the advisor would be able to guide you through this
With time, healthcare costs in Singapore is bound to increase, so it is natural that all of us would want to avoid being critically ill. Unfortunately, a significant number of us will eventually catch a critical illness. It is of utmost importance that we educated ourselves about critical illnesses and shield ourselves and our loved ones with a comprehensive CI plan that will help us lift our financial stress if we were to be struck by a critical illness.
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