5 Things You Probably Do Not Know About Critical Illness Insurance Plan

1. 5 Things You Probably Do Not Know About Critical Illness Insurance Plan When critical illness strikes, the ensuing treatment could require you to take time off from work. It could be for a couple of weeks, a month or even more than a year. Critical illness plan can help make up for this loss of income. Most plans provide a sizeable payout that you can use to pay your mortgage, maintain your standard of living,cover your children’s education fees, and handle numerous other financial obligations. In this regard, a critical illness plan is truly the perfect financial backup plan. Despite of the obviously essential nature of critical illness plan, a study by Life Insurance Association has revealed that Singaporeans have a critical illness cover gap of around 80%. When you factor in the rising costs of healthcare, the conclusion is pretty obvious – a single critical illness diagnosis can wipe clean your savings.

2. So, why does this gap exist? The answer is there is probably low awareness about critical illness insurance plan in Singapore. Remember, a gap does not always mean there is no coverage,it just means insufficient coverage. Let’s begin to bridge the gaps in awareness by covering 5 things you probably did not know about critical illness cover.

3. Coverage can be an individual plan or a rider • Coverage for critical illnesses can be purchased as a separate plan or as a rider to other insurance policies. In case of the former, the plan exclusively protects you in the event of a critical illness. In case of the latter, critical illness can be added as a rider to another insurance policy – such as a whole life plan in order to supplement coverage. Each of these types of critical cover can benefit you immensely; it is best to discuss the details with a financial consultantto know which plan meets your needs best.

4. Multiple claims are permitted • One of the best things about critical illness insurance plan is that the policyholder can make multiple claims during their illness. Leading insurance providers will offer policies that let you claim up to 300% of the basic sum assured.

5. Riders exist to supplement the base plan • As critical illness is often taken as a rider to other insurance plans, not many people are aware that a standalone critical illness plan too can have riders of its own. It is advisable to go through these riders in detail with your financial consultant so that you can truly enhance the coverage of your plan (e.g. premium waivers rider).

6. Know the survival period Most leading insurance providers have a survival period stated as part of their critical illness insurance plan. The policyholder must survive this stipulated period before being able to get their payout. Make sure to inquire into the survival period set by your insurance provider so that you are aware of the fine print before purchasing the plan. A critical illness plan can truly be one of your life’s greatest support when times get tough. You are encouraged to conduct a careful analysis and comparison of various options before deciding on the plan that best suit your needs and budget. Make sure to take into consideration your lifestyle, family’s needs, and rising costs due to inflation while choosing a plan.

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