From April 2023, MOH has ruled that only cancer drugs on their cancer drug list can be covered by MediShield Life and Integrated Shield Plans (IPs). For those whose medication isn’t covered, it can be worrying.
What’s more, high inflation is a major issue these days, one we’re trying to grapple alongside increased GST. In short, the cost of everyday essentials as well as healthcare continues to rise.
I’m only in my mid-30s, but already, I know of at least one friend or relative who’s been diagnosed with cancer. Actually, it’s happened to a few people in my life. A few passed away, some are in remission.
When it comes to CI, you need all the help you can get.
Amidst all the physical, emotional and financial stress, the patient and their loved ones really need all the help they can get. And one way to get help is through critical illness (CI) insurance.
The good thing about CI insurance is that it offers a lump-sum payout upon diagnosis of a covered illness. You can opt for higher coverage if you envision your period of recuperation without worrying about ongoing expenses such as your mortgage, monthly utility bills or children’s tuition fees…or even stressing over earning income during your recovery.
Given the above pressures, we’ve to lower the financial burden on ourselves and our loved ones by protecting our income should something happen to us. Thus, why not consider getting critical illness insurance, especially if it’s affordable and easy to buy directly online?
The various forms of CI coverage
While all Singaporeans are automatically covered by MediShield Life, it’s a basic national insurance plan, so many of us supplement it with an IP from a private insurer to manage hospitalisation costs.
Another good way to supplement your existing health insurance is with critical illness (CI) insurance. According to MOH, as of 2021, the top killers in Singapore were cancer, ischaemic heart diseases, pneumonia and cerebrovascular disease (including stroke), making up about 71% of total deaths in that year. Cancer alone accounted for 26.4% of deaths.
Some people simply add CI riders to their private life insurance. Such protection can range from basic to comprehensive coverage stretching from early-stage, middle to late-stage diagnoses.
But if you want to be better protected, there’s yet another step up that enables you to get even more comprehensive CI coverage — you can consider buying a standalone CI insurance plan. Find out more on how to choose critical coverage plans for specific critical illnesses from FWD’s suite of critical illness insurance plans.
Going one step further #knowwhatscritical
Those who #knowwhatscritical and want to ensure they have good protection can consider insurance coverage for common critical illnesses, especially the Big 3: cancer, heart disease and stroke.
According to critical illnesses claim statistics in Singapore in a study by GenRe, the Big 3 aka cancer, heart attack/other heart conditions and stroke account for 88% of the claims for men and 91% of the claims for women. In addition, cancer contributed to the bulk of the claims, with 45% for men and 80% for women.
Therefore, it makes sense to beef up your financial protection for the diseases you’re most likely to get hit with in your lifetime.
With a standalone CI plan, it offers financial protection for critical illnesses independently of any other plan. This is different from getting a CI rider, which only remains valid insofar as your main plan (usually life insurance) remains in force. The claim limits might also be shared with your main plan. Should your main plan lapse for whatever reason, or should you reach your claim limit, you will lose your CI coverage.
On that note, standalone CI plans are able to offer a higher amount of coverage than CI riders, which could be a practical approach if your goal is to get adequate financial protection for selected critical illnesses you are concerned about.
The payouts you can potentially receive from a CI plan differ from those of hospitalisation plans. The latter covers a portion of your medical bills when you get hospitalised. A CI plan, on the other hand, offers a lump sum payout.
The CI lump sum payout is not linked to your medical bills and can be used in any way you want.
John’s last-drawn monthly salary was S$5,000. He gets a CI lump sum payout of S$200,000 from his insurer, which replaces his income and will last him slightly over 3 years to help him cope financially while recuperating. It also goes towards his post-hospitalisation and rehabilitation costs, and he can also use it to support his family as he’s the sole breadwinner.
Good value-for-money CI coverage #forthewin
FWD offers two good value-for-money plans that cover you for the most common critical illnesses Singaporeans face. Both plans can be purchased directly online without medical examination.
First up, FWD’s Big 3 Critical Illness insurance plan offers coverage for the Big 3 critical illnesses, specifically cancer (all stages), late-stage heart attack and late-stage stroke.
More concerned about the top killer, cancer? FWD’s Cancer 2.0 insurance is Singapore’s most comprehensive1 online cancer plan. Coverage includes early tumour diagnosis, and the plan continues to offer protection against new or recurring late-stage cancer even after a first claim at any stage of cancer.
For a 35-year-old female non-smoker, their Big 3 Critical Illness plan would cost an affordable S$60.37 a month2 (S$200,000 coverage).
Meanwhile, FWD’s Cancer 2.0 insurance would cost S$150.14 a month. (S$200,000 coverage, protection up to age 65).
Here are some of the biggest advantages of the two plans:
FWD Big 3 Critical Illness:
Affordable coverage with perpetual 35% discount, at just S$60.37 a month2 for a 35-year-old female non-smoker (S$200,000 coverage)
100% lump sum payout
Cost-efficient way to get coverage for top 3 most critical illnesses (cancer, heart attack, stroke)
Can be used to enhance existing critical illness coverage
FWD Cancer 2.0 insurance:
Strikes a good balance between cost and coverage, at S$150.14 a month for a 35-year-old female non-smoker (S$200,000 coverage, financial protection up to age 65).
Can be used to enhance existing critical illness coverage, specifically, cancer
Offers Pre-early Cancer Benefit, with additional payout of 10% sum insured or S$10,000 (whichever is lower), even for early tumour diagnosis and treatment
Pre-Early Cancer Benefit does not affect coverage or other benefits, so you can still make all the claims you are entitled to even after claiming the Pre-early Cancer Benefit.
Multiple payouts for new or recurring late-stage cancer. Even if you make a first claim for any stage of cancer, your coverage continues. That means you still receive 100% of the sum insured for any subsequent new or recurring late-stage cancer diagnoses (subjected to a 24-month reload period).
Sign up with MoneySmart’s exclusive promo code MSMART (valid till 31 Dec 2023) and receive an additional 5% discount off your first-year premium on the Big 3 Critical Illness insurance and Cancer 2.0 insurance plans.
The 5% discount is stackable with any other discounts and promotions, enabling you to potentially save even more!
Coverage is a gift of love
There’s one thing all my friends and relatives who’ve had cancer have in common — their families could have been less financially burdened if they’d had critical illness insurance.
As they say, when it comes to coverage, don’t miss what is critical!
1 Based on current similar product comparison with 5 major insurers which provide coverage for different stages of cancer. This comparison does not include information on all similar products. FWD Singapore Pte. Ltd. does not guarantee that all aspects of the products have been illustrated. You may wish to conduct your own comparison for products that are listed on www.comparefirst.sg. Information is accurate as of 23 December 2022.
2 Premium quoted is before any discount applied. The 35% perpetual discount is valid for plan purchased from now till 30 Jun 2023. Terms and Conditions apply.
This article is meant for general information and shall not constitute as financial advice. You may wish to seek advice from a financial adviser representative for a financial analysis before purchasing a policy suitable to meet your needs.
Terms and conditions apply. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.
This post was written in collaboration with FWD. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best information in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.
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Original article: When It Comes to CI Coverage, Don’t Miss Out on What’s Critical.
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