ARTICLE

Early critical illness insurance: What it covers, why you might need it, and how to choose one

8 min read
Health Check Critical Illness Coverage
Imagine going to a doctor for a routine check-up. Tests are run, and to your surprise you are diagnosed with breast cancer. The doctor assures you that this is the most common type of cancer affecting women in Singapore and as the cancer is still in stage 1, your chances of recovery are almost 100 per cent.
 
You are relieved and agree to start treatment immediately. But over time, the medical bills start to add up. You are running out of sick leave, and now you have to take unpaid leave to get treatment. As your savings begin to dwindle, you panic and wonder, "How much longer can I keep this up?"
 
This is where early critical illness insurance can help.

What is early critical illness insurance?

An early critical illness insurance provides a financial safeguard for you and your family. It pays out a lump sum of money once you are diagnosed with an early stage illness covered by the policy so you can decide how to spend it — whether to cover treatment costs or to supplement your living expenses. Examples of critical illnesses include cancer and heart disease, which are two leading causes of death in Singapore.
 
The concept is similar to that of critical illness insurance. However, early critical illness plan is more comprehensive and offers the advantage of an early payout so you have more resources for alternative treatment.

Know the difference: Early critical illness vs Critical illness insurance plans

#1 Scope of coverage
 
A typical critical illness insurance policy only provides payouts on 37 critical illnesses on Life Insurance Association (LIA) Singapore industry list. However, these illnesses must have a certain severity level to qualify. For example, a disease is not considered a "Major Cancer" until it is in its late stages, meaning a stage 1 breast cancer patient cannot make a claim.
 
On the other hand, an early critical illness plan generally covers a broader range of conditions including but not limited to heart disease, Parkinson's disease, multiple sclerosis, Alzheimer's disease, and cancer — and at varying levels of severity. The stage 1 breast cancer patient could apply.
 
#2 Payout frequency
 
Although there are some exceptions, most critical illness policies lapse once the entire benefit has been paid out. It might also be difficult to get new critical illness insurance.
 
In contrast, many early critical illness plans have the option of multiple payouts. This means that if you received a payout for your cancer diagnosis, you can receive another payout if you have a heart condition later on.
 
Take for example AIA Absolute Critical Cover: Coverage is restored 12 months after your last critical illness, allowing you to make claims up to 500 percent of your coverage amount*. It also provides double your coverage amount if the same illness recurs^.
 
#3 Payout amount
 
This brings us to the third difference: cost. Because of the recurring payouts, premiums are typically higher for early critical insurance plans.

Why do I need an early critical illness insurance plan?

You may wonder: Why is early critical insurance necessary? After all, when one is still young, how likely will critical illness strike?
 
While it is true that the likelihood of critical illness increases with age, young people are not exempted. Studies have found that the number of young people suffering from a stroke has increased in the last decade. Myocarditis, an inflammation of the heart muscle, has been found to affect young, athletic people, and skin cancer is a risk for those who spend a lot of time outdoors in the sun.
 
It is recommended to go for regular check-ups so that diseases can be diagnosed early, and you have a better chance of recovery. Instead of waiting until the disease reaches a more severe stage, you'll want to get treatment right away and claim on insurance.

Why isn't health insurance enough?

Although health insurance, such as MediShield Life can help with medical fees, there are limitations to the type of hospital, ward and treatment that you can claim for. Having early critical illness payouts to supplement the cost will give you the advantage of being able to afford more treatment options.
 
In addition, treatment for critical illnesses can also be extremely high. For instance, in the case of cancer, the cost ranges from an average of $1,500 per cycle for a chemotherapy session to $9,000 per dose for immunotherapy. Depending on your health insurance plan and the treatment you need, there may be caps to the amount you can claim, making it useful to have early critical insurance payouts.
 
Finally, health insurance will only be able to alleviate the financial burden of medical costs. There are other costs, such as for transport to the hospital, hiring a helper to care for the children, and loss of income from stopping work, which can add up in the long run. Having an early critical illness plan can help buffer these costs, allowing you to maintain your standard of living and focus entirely on your recovery.

How to select an early critical illness plan

If you're considering an early critical illness plan, here are some questions to ask yourself before you make the commitment.
 
#1 What medical conditions do you want to be covered for?
 
While there are varying levels of coverage offered by different critical illness plans in the market, AIA Absolute Critical Cover is one of the most comprehensive you can find. It covers 150 multi-stage critical illnesses, and is the first plan in the market to cover conditions like thyroid disorders and sleep apnoea.
 
#2 How many payouts are offered?
 
Advances in health care have made it possible to detect diseases earlier and treat them better, which in turn increases our life expectancy. However, this also means that there is a likelihood of suffering from multiple critical illnesses during one's lifetime, making it important to have multiple payouts.
 
#3 How long and how much will I be covered for?
 
According to an LIA study, life expectancy after diagnosis is around four to five years. Ideally, the sum you are assured for should be equivalent to your income, or at least able to cover your cost of living for that period of time. For a better gauge, you can check how much you need using the LIA protection gap calculator.
 
#4 What additional benefits does the plan offer?
 
Look for other benefits the plan offers, such as waiver of premium in the event of a claim, additional protection for special or juvenile illnesses, or even cash benefits for staying healthy.
 
The term critical illness can sound daunting, but the reality is that more people are diagnosed with it each day. Thanks to medical advances and regular screenings, they can now be detected early, increasing your chances of recovery. Early critical illness insurance can support your recovery by providing you with more treatment options, improving your financial stability, and giving you more peace of mind overall.
 
Contact our AIA Consultants today to learn more about our critical illness plans, and find out which one is best for your lifestyle.
*Maximum claim limits apply. Waiting period of 12 months required from the date of diagnosis of the preceding Critical Illness under the Critical Illness Benefit or Power Relapse Critical Illness Condition under the Power Relapse Benefit, where a claim was admitted by us. Each subsequent claim(s) must be for a different condition.
 
^Maximum claim limits apply. Waiting period of 2 years required from the date of diagnosis of any stage of the same Critical Illness or Power Relapse Critical Illness Condition, for which a claim was admitted by us. We will only admit a claim for a Power Relapse Critical Illness Condition if we have previously paid 100% of the coverage amount under the Critical Illness Benefit for any stage of the same critical illness.
 
 
References:
 
  1. Common types of cancer – Singapore Cancer Society
  2. What are the most curable cancers? – Medical News Today
  3. Principal causes of death – Ministry of Health
  4. Truths and myths about stroke – The Business Times

Share

https://www.linkedin.com/sharing/share-offsite/?url=https://www.aia.com.sg/en/health-wellness/healthy-living-with-aia/early-critical-illness-insurance-what-it-covers
https://www.facebook.com/dialog/share?app_id=113869198637480&href=https://www.aia.com.sg/en/health-wellness/healthy-living-with-aia/early-critical-illness-insurance-what-it-covers&display=popup
mailto:?subject=Early Critical Illness Insurance: What It Covers&body=Learn about early critical illness insurance: coverage, necessity, and how to choose the right plan. Secure your finances during medical emergencies. https://www.aia.com.sg/en/health-wellness/healthy-living-with-aia/early-critical-illness-insurance-what-it-covers

Related articles

ARTICLE
5 Things you need to know before getting a critical illness plan icon ARTICLE 8-min read
Article
Paul Foster, actor and gym rat, on getting through a health scare icon Article 15-min read
ARTICLE
4 Things about critical illness definitions in Singapore icon ARTICLE 7-min read

Recommended products

Get in Touch

*Please select an option
*Name is required
*Please ensure that you mobile number starts with 8 or 9, up to 8 digits.
Please select the right country code.
*Please fill in a valid email address
Are you an existing AIA Singapore customer?*
last 4 characters
Please provide last 4 characters of your NRIC / Passport / FIN no.
*Your date of birth is required

Area of concern

*Please select an option
Only required if Others is ticked
Please specify an area of concern

Please provide your consent by ticking on the checkbox below:*

*Please tick consent before submission
*Please verify the reCAPTCHA and tick the check box before submission

Thank you for your request.

We will do our best to respond to you as soon as possible.
error icon
*Form submission error