Critical Illness Insurance – Why You Need It

Critical Illness (CI) insurance is a policy which typically has a lump sum payout when the person insured is diagnosed with a critical illness. It is one of the most common and also essential plans to have, in order to be financially protected with adequate coverage in the case of such an event. 

Which critical illnesses would be covered?


There are so many critical illness insurance plans out there. You may be wondering what exactly are the critical illnesses that are covered under most policies offered by the insurance providers in Singapore. You could take a look at the following list, extracted from the Life Insurance Association Singapore (LIA). 


1 Major Cancer 

2 Heart Attack of Specified Severity 

3 Stroke with Permanent Neurological Deficit

4 Coronary Artery By-pass Surgery 

5 End Stage Kidney Failure 

6 Irreversible Aplastic Anemia 

7 End Stage Lung Disease 

8 End Stage Liver Failure 

9 Coma 

10 Deafness (Irreversible Loss of Hearing) 

11 Open Chest Heart Valve Surgery 

12 Irreversible Loss of Speech 

13 Major Burns 

14 Major Organ / Bone Marrow Transplantation 

15 Multiple Sclerosis 

16 Muscular Dystrophy 

17 Idiopathic Parkinson’s Disease

18 Open Chest Surgery to Aorta 

19 Alzheimer’s Disease / Severe Dementia 

20 Fulminant Hepatitis 

21 Motor Neurone Disease 

22 Primary Pulmonary Hypertension

23 HIV Due to Blood Transfusion and Occupationally Acquired HIV 

24 Benign Brain Tumor 

25 Severe Encephalitis 

26 Severe Bacterial Meningitis 

27 Angioplasty & Other Invasive Treatment for Coronary Artery 

28 Blindness (Irreversible Loss of Sight) 

29 Major Head Trauma 

30 Paralysis (Irreversible Loss of Use of Limbs) 

31 Terminal Illness 

32 Progressive Scleroderma 

33 Persistent Vegetative State (Apallic Syndrome) 

34 Systemic Lupus Erythematosus with Lupus Nephritis 

35 Other Serious Coronary Artery Disease 

36 Poliomyelitis 

37 Loss of Independent Existence


However, many critical illness insurance plans in Singapore cover a wider range of illnesses and conditions. Hence, it is important that you do your own research on the illnesses which various plans by the different insurance providers cover. 


Most of us would probably be thinking – I already have a life insurance plan. Is it really necessary for me to upgrade my plan, or to have a critical illness insurance plan?


What’s Special About Critical Illness Insurance Plans 

For most life insurance or health insurance policies, the payout is only received when the insured policyholder dies or gets warded in a hospital. If you only have a life insurance plan and unfortunately get diagnosed with a critical illness which may cause debilitation, no payout is paid unless medical and hospitalization expenses have been incurred. 


A diagnosis of a critical illness is not only bad news for your health and body, it spells troubles for your financial health as well. Very frequently, those who are diagnosed with a critical illness would suffer from a loss of income, as well as surging expenses due to medical fees. It is therefore very important to protect yourself and your family with monetary coverage should this happen. A critical illness insurance plan, unlike other policies, pays out a lump sum once the insured is diagnosed with the critical illness. 


What Can I Use A Critical Illness Insurance Payout On?


The payout from a critical illness insurance plan does not have to be used on hospitalization or medical expenses, and could instead be utilized in other ways for the insured to sustain his standard of living prior to the diagnosis. It does not have to be claimed only when certain hospitalization or medical expenses have been incurred. Some examples may be: 


  1. To continue payments for ongoing financial obligations, such as home mortgages and education loans 
  2. To replace your income and provide for necessities in the case of loss of income 
  3. To pay for long-term medical expenses which might not be claimable under some policies


Should I get Critical Illness Insurance Coverage?


That being said, although critical illness insurance plans are often overlooked and yet important, it is still worth noting that the most crucial insurance plans to have are still life and health insurance plans. If you have insufficient funds to pay the premiums for all these policies and are trying to decide between life insurance and critical illness insurance, you should definitely get the most essential life insurance first. 


I’m Looking For Some Critical Illness Insurance Plans


If you are on the lookout for the most affordable and comprehensive critical illness insurance plans, do check out this summary of the best critical illness insurance plans in Singapore 2022! 

Some of these plans have features which can cater to your every need, such as critical illness insurance plans which offer multi-pay, as well as those who offer payouts even at the early stages of critical illness. Many of these plans are also easy and convenient to purchase as well, with options to browse and purchase online. Start taking charge of your physical and financial health now and protect yourself with critical illness insurance coverage.