Having seen the financial distress that critically ill patients and their caregivers face, it is evident that a critical illness insurance plan can greatly lessen the financial burden one faces in the event that they are diagnosed with a critical illness.
Battling a critical illness can be tough. It is a long-term affair and can put a large stress on one’s finances and emotional health. From the medical bills involved in the treatments for critical illnesses to facing difficulties with paying for necessities, it is no surprise thatsecond most expensive country to live in,For those battling critical illnesses, it is not solely the one-time costs that they have to bear.
There are also long-term costs of treatment for critical illnesses involved.Between the emotional trauma and challenges and the financial distress one faces when critically ill, patients, as well as their loved ones, often find financial concerns the biggest challenge.it was found that on average, critically ill patients spend S$32,000 on treatment while 15 per cent spent in excess of S$50,000 or more. With such a hefty sum spent on just their treatment, it leaves them with little to no money left for other expenses. Perhaps, this could be why 25 per cent of patients have had to borrow money or remortgage to pay off their bills. But it’s not simply the cost of treatments that patients worry about. It is also the fear that they may end up losing their jobs once diagnosed. As the medical bills to pay in the future increase and yet, they face a declining source of income, it has been reported that six per cent of patients have declared bankruptcy due to critical illnesses. While Singaporeans may be eligible for subsidies and grants offered by the government, the reality is that such subsidies are typically insufficient.The costs of critical illnesses can indeed be overwhelming. However, there is a solution that can help alleviate a significant amount of your financial burden.As its name suggests, critical illness insurance provides coverage for life-threatening illnesses such as heart attack, stroke, cancer, and more. As such medical emergencies incur a much higher cost than usual medical expenses, critical illness insurance plans provide payouts to help cover such costs.Currently, you have the option to purchase a standalone critical illness insurance plan or have it as an add-on to your life insurance plan. Some insurers offer a multi-pay plan whereas others offer an accelerated plan. Read on to better understand their differences and which you should purchase.For those new to critical illness insurance, these terms may sound foreign to you. However, in a bid to help you better understand such terms, we have included their key differences.The main difference between the two is the number of claims and payouts offered. Easily inferred from the name, “multi-pay”, a multi-pay critical insurance plan offers multiple payouts whereas an accelerated plan only offers one. For an accelerated plan, upon your diagnosis, your insurer will pay you a lump sum if you are diagnosed with a critical illness covered in your policy. After which, your insurance plan will be terminated.On the other hand, multi-pay plans will provide coverage for recurring critical illnesses. Similar to an accelerated plan, upon your diagnosis, you will receive a payout from your insurer if you are diagnosed with a critical illness covered in your policy. However, for multi-pay plans, your plan will not be terminated. As such, should you be diagnosed with another critical illness covered by your policy or suffer a relapse, you will be able to make another claim. Having said that, do read the terms and conditions of your policy carefully to understand the percentage of the Sum Assured you will get to claim and the minimum period of time before you can make your next claim.Due to the higher number of payouts offered under a multi-pay critical illnesses insurance plan, the premium that you will have to pay will generally be higher. For a 35-year-old individual with a Sum Assured of S$100,000, the costs of the various plan are as follows:Multi-pay Critical Illness Insurance: S$1,000 – S$3,500Whether you should get a multi-pay or accelerated plan is entirely up to your priorities. For individuals who prefer and can afford higher coverage and payouts, the multi-pay critical illnesses insurance plans are for you.As previously mentioned, you will be able to make multiple claims under the multi-pay plan. This allows you to be covered for more than one critical illness. As such, in the case where a critical illness can be genetically inherited, it is often recommended to get multi-pay plans as it has a high possibility of recurring. Nevertheless, in cases where your budget does not permit you to opt for a high coverage plan, you can consider getting a cancer insurance plan such asProviding coverage for cancer only, the premiums that you will have to pay will be much lower. Thus allowing you to cut your expenses on insurance. Apart from cancer insurance, insurers in Singapore also offer heart attack and stroke insurance plans. With such a financial safety net in place, in the unfortunate event that you are diagnosed with a critical illness covered by your policy, you may have peace of mind that your finances would not take a blow. As such, you would not need to trouble your family to help you with finances. Furthermore, the extra amount that you have saved with a critical insurance plan can be then used for long-term daily medical necessities that your policy does not cover but are required for your treatment.Apart from enjoying more extensive coverage under the multi-pay plan, you will also be able to enjoy higher payouts in the long run.Critical Illness Benefit100% of the Sum Assured 300% of the Sum Assured less any claim paid for the Early and Intermediate Stage of the same CI Group any one of the 6 specified Severe Stage CIs covered Under this plan, you will be entitled to up to 900 per cent of your Sum Assured, depending on your diagnosis. In comparison, accelerated plans such as those byWho Should Get Accelerated Critical Illnesses Insurance Plans As for individuals who have a tighter budget and prefer a much more straightforward plan, you can consider getting an accelerated plan instead.As such plans provide lower payouts and cover a single critical illness, the premium is also much lower, making it suitable for those on a tighter budget. Having said that, it is imperative to note that the premium you pay will depend on the following factors.
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The real financial cost of critical illnesses in SingaporeBattling a critical illness can be tough. It is a long-term affair and can put a large stress on one’s finances and emotional health. From the medical bills involved in the treatments for critical illnesses to facing difficulties with paying for necessities, it is no surprise that one in three of critical illnesses patients have spent all or most of...
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