Mon. Jan 25th, 2021

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Is Critical Illness Insurance Worth It?

5 min read

Young adults in 20s and 30s do not want to think about any medical assistance insurances as it is the time to build a career and enjoy life in luxury.  But it is wise to plan ahead of time, about the perfect medical insurance to invest in, to avoid the financial impact of medical treatment on the lifestyle. It is better to take the help of an experienced financial consultant about the type of policy to opt for. Aside from learning on how to renew maid insurance, it’s also vital to know if it necessary to take a critical illness insurance.

It is completely usual to want to invest money in something to protect our worldly possessions.  Purchasing an insurance plan is necessary to lead a financially secure lifestyle where we cannot predict the risk associated with heath and illness.  Major strokes and cancers are the ones which are generally covered under critical illness insurance

Benefits

The critical illness health insurance policy hand over a lump amount to the insurance holder only when they are diagnosed with the illness that is mentioned and covered under the policy.  Having adequate critical illness coverage can help you cope with the financial clash of medical charges and treatment, providing you a sense of security and concentrating on other things much more independently.

Singaporeans are generally unwilling to invest in something that so not comes in handy which results in a broad gap in obtaining critical illness protection insurance. Research well and be aware if critical illness insurance is it worth it.

Assumptions about critical illness insurance

  • The risk of having critical illness may be lower among the group of young generation, but it cannot be eliminated. Recently an increasing trend of detecting certain diseases among the young people has been reported. The increase in the occurrence of skin cancer and colorectal disease under the age of 50 has been recorded which brings us to the conclusion that even the young people who think that their young age cannot report any critical illness.

Instead with the lifestyle of smoking and drinking among the youngsters, critical illness is impossible to avoid.  There are always environmental and genetic factors that can elevate the risk.

  • Health insurance policy and critical illness insurance are quite different. So if one thinks that her health insurance policy will cover critical illness treatment expenses, she is mistaken.  Health insurance funds all hospital expenses, surgical strategy and every other treatment specifies in the policy.

A Critical illness insurance policy is a lump amount of money that not only covers medical-related expenses; it also covers day to day living expenses also.  So one should recheck its policy to reassure him whether he is covered under health insurance policy or critical illness insurance policy.

  • Some people think that the critical insurance policy can be covered only once. But it is not true. It can be initiated and covered several times. Some policies comes with the feature of “cover me again” which permit you to resume your coverage several time even after you have made the claim. Assurance of covering the events of future critical illness insurances can give a sense of security to the insurance holder.

Different types of insurances

To know whether critical illness insurance is it worth it, you must know the following:

  • Basic critical illness insurance – as defined by life insurance association, it covers for 37 critical illnesses with a lump sum payout.
  • Integrated shield plan- provides coverage for surgeries, before and after treatment, and particular outpatient treatment. Payment is claimed through reimbursement basis.
  • Early critical illness insurance – covers 119 medical circumstances from early to advanced stages of critical illness.
  • Cancer insurance- this insurance covers all the stages of cancer. Its payment includes lump sum payout.

Factors to be considered while buying a critical illness insurance plan

  • Income and savings are a factor in considering an insurance plan. One should consider the situation of losing his job for a definite period of time on the basis of health recovery from a serious illness. The effect of financial crisis on the family and the individual would be huge. Sometimes the savings is not enough to crush the blow.
  • Irrespective of how seriously ill you are car loan, house loan, any other kind of loans or debts have to be paid off from time to time. Scrutinise your reimbursements while deciding on your critical illness insurance plan.
  • Make sure that you have adequate money to keep your lifestyle and family uninterrupted during your time at recovery. Follow your family’s present and anticipated expenses and make sure your critical illness insurance plan is enough to cover it.

There can be unforeseen situations arising in the middle of the recovery time such as financial assistance to elderly members of the house or educational fees of children which may need special concern.

  • In Singapore, some hospitalized plan does not cover 100% of your medical expenses. Thus it is important for one to look out for your critical illness insurance plan to pay off extra expenses for the treatment. It is highly advised to get your hospital insured as it can reduce the burden of expenses. There are definitely going to be some extra expenses like travelling in public transport or may want to hire taxi or cabs to move from one place to another.  These small expenses must be considered in the critical illness insurance plan.
  • You must also be aware how to renew mad insurance.

Duration of the coverage provided by critical insurance plan

There are several critical illness insurance plans with long and short duration based on the need of the individual. Some critical illness insurance plans provide coverage up to 100 years of age.  The increasing number of retirement age and life expectancy in Singapore, long term critical illness insurance plan is beneficial.

With insurance at the age of 100, it is mentally relaxing to have coverage with the increasing age. it doesn’t matter to get diagnosed with any illness at a ripe age because you have a financial saving through the interest which will get it all covered.  It is also assured that your loved ones or the nominees will get 100% of the coverage amount, unless any critical illness benefit have been already remunerated. They will also be paid a compassionate benefit of $5000.

Cost of critical illness insurance plans

One has to take many factors in consideration like daily expenses and retirement savings and then considered opting for a suitable plan. No doubt having an extensive critical illness can be valuable but it also requires some heavy investment.  One should opt for lower coverage plan rather than no coverage if there are financial troubles.

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