3 Misconceptions About Critical Illness Insurance Plans

Critical Illness (CI) insurance is a policy which typically has a lump sum payout when the person insured is diagnosed with a critical illness. In this article, we cover some of the most common misconceptions about critical illness insurance plans and explain some of the most beneficial features which some plans offer to bridge that gap. 

  • It’s So Hard And Cumbersome To Apply For Critical Illness Insurance Plans


Many of you may think of the insurance buying process as cumbersome and difficult. This especially applies to critical illness insurance plans as many of them may require you to undergo health screenings before you can purchase the plan. Buying insurance also seems to be troublesome as you would usually have to arrange for meetings with a financial advisor before the plan purchase. 


However, you can be reassured that not every critical illness insurance plan is like this! There are many critical illness insurance plans out there which offer great ease and convenience of purchasing. Some of them include the HL Assurance Early Protect360 and FWD Big 3 Critical Illness Insurance, both of which do not require the undergoing of any medical examinations or having any discussions with a financial advisor. Simply purchase these plans online, and at the click of a button, you can enjoy the benefits and coverage of these comprehensive plans! 


  • Critical Illness Insurance Plans Only Give Payouts If I’m at a Terminal Stage 


Many may hesitate to apply for a critical illness insurance plan as many plans only provide the lump sum payouts to the insured policyholder during the terminal stage of the insured’s critical illness. Due to this factor, many might think that a life insurance would therefore be sufficient, and that a critical illness insurance plan would not be necessary. 


That was in the past. Now, there are many more critical illness insurance plans which offer lump sum payouts even during the early and intermediate stage of the covered critical illnesses. They are called early stage critical illness insurance plans. One of the best benefits that early stage critical illness insurance plans can bring is the fact that a full payout upon diagnosis of the critical illness at any stage would allow the patient to be able to afford and pay for their medical and hospitalization expenses throughout the entire journey and various stages of the illness. 


Some early stage critical illness insurance plans include Aviva’s MyEarly Critical Illness Plan which provides a 100% lump sum payout upon diagnosis of the critical illnesses at any stage of the illness. AXA’s EarlyStage Criticare provides a 100% lump sum payout during an illness’s early onset, and up to 150% of the payout at the illness’s terminal stage. 


  • I Will Never Get Covered Under Any Critical Illness Insurance Plan if I’m Concerned About a Rare Disease 


Some people with a family history of a rare disease or illness may be concerned about the fact that most critical illness insurance plans usually only cover the Life Insurance Association Singapore (LIA)’s list of 37 critical illnesses. Therefore, purchasing a critical illness insurance plan that does not cover their relevant critical illness would not be the wisest choice for them. In that case, many are worried that they would never be able to find a critical illness insurance plan that suits them and their health needs. 


The above only applies for the most standard critical illness insurance plans. Now, tailored critical illness insurance plans are being offered in the insurance market by various providers. 


What are tailored critical illness insurance plans? They are plans which cater to a specific demographic or specific illness, and serve to provide coverage for those who are concerned about a particular illness and would only want to pay for the coverage they need. One example would be TokioMarine’s Protect Cancer Plan, which offers coverage for early and advanced stage cancers. This plan would be good for those who are particularly worried about cancer, it being one of the top few common illnesses in Singapore. 


I’m Looking For Some Critical Illness Insurance Plans

Not every critical illness insurance plan is the same. As seen from the above, many critical illness insurance plans do offer a wide variety of add-ons and features to cater to every audience and every need. If you are looking out for the critical illness insurance plan just for you, please visit our summary of the best critical illness insurance plans in Singapore 2022 to find a plan that is specially tailored and suitable for you! Protect yourself and your family now with a critical illness insurance plan.