A critical illness is an ailment that completely disrupts your life and costs a huge amount for treatment and recuperation. What’s alarming is that such conditions are on the rise - it is reported that 39 new cases of cancer are diagnosed every day in Singapore. And cancer is just one of the many critical illnesses; others include renal failure, paralysis, diabetes, etc.
The effective treatment of these diseases is expensive. Also, most of them require sustained treatments that can range from a few weeks to several months in some cases. Thus, the financial strain can be as severe as the illness itself.
That’s why critical illness insurance is essential:
You must plan for occurrence of a major ailment and de-risk it with the help of a critical illness insurance policy. It is no different from buying health, auto, or home insurance – get a policy today and you can avoid the extreme financial liabilities that accompany these conditions.
Features of critical illness policy:
Acritical illness insurance policyusually covers a range of diseases including stroke, kidney failure and paralysis - but more often they cover only one condition such as cancer. The lifetime probability of cancer is above 20% and thus it is the most common illnesses covered.
The policy can be standalone, rider-based, or an add-on to your existing health policy. Because Singapore has an efficient public healthcare system, many do not consider it essential to purchase cancer insurance, or any other form of critical illness cover. This is why, on average, Singaporeans suffer a coverage gap of $ 250,000 when it comes to major illnesses.
Just remember that most critical illness plans have a waiting period of three to six months from the plan’s inception during which claims are not allowed. Moreover, the applicant has to usually disclose their complete medical history and undergo medical tests as prescribed.
Critical illness policies for cancer
The financial burdens of cancer are not only due to several rounds of chemotherapy but also due to the potential loss of income. So, while the average cost of cancer treatment in Singapore is around $ 100,000 to $ 200,000 per year – the actual financial impact of the illness could be far worse.
Often, there is a need to sell assets and liquidate investments to arrange the required funds. That is why makes financial sense.These plans usually provide 100% payout at all stages of cancer. You can use these funds to cover monthly instalments, your monthly expenses, and daily needs.
Also, there is the possibility that after surviving a battle with cancer the patient may suffer another debilitating illness such as heart attack.Therefore,it is best you look for a critical illness plan that offers continued protection and does not terminate after a single incidence.
Of course, the common complaint is if you do not make a claim then the amount is wasted. But that is the case with any term insurance and the purpose is to take away your possible worry and not act as an investment vehicle.Some of the plans do have a tidy payout plan at the end which makes them more acceptable. However, it is better to buy a policy that has a higher sum assured than investment returns.