9 in 10 worry that they may be diagnosed with yet another critical illness in their lifetime

Singapore, 18 August 2016 – More than 9 in 10 (94%) find it challenging to purchase another Critical Illness (CI) plan following a CI diagnosis, even though more than 2 in 5 (41%) are looking to purchase another CI insurance plan, revealed in the AIA Health Matters Survey 2016 released by AIA Singapore.

Accordingly, as part of AIA Singapore’s 85^th anniversary celebration, the company today launched AIA Triple Critical Cover, a CI plan with a ‘Power Reset’ feature which fully restores the critical illness coverage amount to 100% after 12 months have passed from the previous claim. This is the first time in the market such a feature is offered for all stages of CI, even for early stage CI.

Complementing this, the life insured can make multiple claims for 104 critical illness conditions across all stages - early, intermediate and major - for up to 300% of coverage amount¹.

Additionally, the AIA Triple Critical Cover Life plan offers guaranteed cash value. The life insured may choose to hold the plan to maturity at age 100 or discontinue their plan after age 75 or on the 60^th policy anniversary, whichever is earlier, and receive cash value even if they do not make a CI claim.

“In Singapore today, the average sum assured from critical illness plans will cover us less than halfway through the treatment time required before the condition stabilises, an important gap that needs to be bridged. AIA Singapore is filling this gap with AIA Triple Critical Cover which is inspired by and supports resilient Singaporeans who celebrate life and simply don’t believe in giving up.

“3 in 4, when diagnosed with a critical illness, stop working partially or fully, found our study. No matter what happens, they want to focus on recovering, and more importantly, come back stronger to continue building a future for themselves and their families. It is this enduring resilience that we seek to emulate with AIA Triple Critical Cover. AIA Singapore will continue protecting Singaporeans even after they have made a critical illness claim¹ so that they can look to their future with confidence. This is AIA Singapore’s promise to customers for them to lead healthier, happier, better lives with their families,” said Ms Ho Lee Yen, Chief Marketing Officer of AIA Singapore.

¹Maximum claim limits apply and subsequent claims have to be for a different condition from the earlier claim(s).

Gap #1: Singaporeans are concerned about not having protection should another critical illness strike

“The majority of patients are financially unprepared for cancer treatment and are shocked that modern chemotherapy and targeted therapy can cost so much.

Besides the physical strain of undergoing treatments, patients also worry about the risk of being diagnosed with other critical illnesses such as heart attack or stroke, and yet another extended period away from work which will worsen their financial situation. There is a greater need to help these individuals so they are not only able to fight the illness but, just as importantly, look forward to living life without the worry of being in debt indefinitely,” said Dr Wong Nan Soon, Consultant Medical Oncologist at OncoCare Cancer Centre Singapore.  

It is essential to stay insured after the diagnosis of critical illness as survival rates are high. Taking the most common cancer in women as an example, more than 7 in 10 breast cancer patients survived at least 5 years, with the highest survival rates of 80 to 90 per cent among women who discovered the cancer early.²

Among respondents diagnosed with CI, almost all (97%) are worried that they may be diagnosed with another CI in their lifetime. At present, more than 1 in 3 (32%) are already diagnosed with more than 1 CI.

Overall, approximately 2 in 5 (41%) who have experienced first-hand the importance of adequate financial coverage for a CI condition, are looking to purchase another CI protection plan. However, more than 9 in 10 (94%) find it challenging to purchase another CI plan following the first diagnosis.

With the AIA Triple Critical Cover’s ‘Power Reset’ feature, the life insured will have their critical illness coverage amount fully restored to 100% once 12 months have passed from the previous claim even for early stage critical illness conditions.

This is the first time in the market such a feature is offered for all stages of CI, even for early stage CI, unlike most CI plans which usually terminate once a CI claim is paid. When the life insured is diagnosed with CI, it also tends to be expensive or impossible to purchase another CI protection plan with the same coverage.

With the AIA Triple Critical Cover’s ‘Power Reset’ feature, the life insured will have their critical illness coverage amount fully restored to 100% once 12 months have passed from the previous claim even for early stage critical illness conditions.

This is the first time in the market such a feature is offered for all stages of CI, even for early stage CI, unlike most CI plans which usually terminate once a CI claim is paid. When the life insured is diagnosed with CI, it also tends to be expensive or impossible to purchase another CI protection plan with the same coverage. 

²‘More people getting cancer since 2010’ (March 19, 2016) The Straits Times. Singapore. Available at:
http://www.straitstimes.com/singapore/health/more-people-getting-cancer-since-2010

Gap #2: Average coverage amount is insufficient to cover loss of income and other relevant costs

57% of individuals who purchase CI plans do so to provide financial support for themselves and their families if they were to be diagnosed with critical illness. However, on average, their sum assured is insufficient to protect themselves and their families. 

While MediShield Life and Integrated Shield Plans provide important pre-, during- and post-hospitalisation coverage, people often neglect to take into account other costs such as loss of income when they are diagnosed with a CI. This may impact their ability to pay for their home mortgage, children’s education and other financial commitments.

In fact, 75% of those diagnosed with CI stop working fully or partially, and almost 1 in 2 (47%) of them are sole breadwinners.

The average sum assured from critical illness plans is below S$150,000. This amount would cover only 1.5 years of lost income in the event of a critical illness diagnosis,³ providing protection for less than half of the average 3.5 years of treatment required before the condition stabilises. Combined with in-hospital, post-hospital and other related costs, it is no surprise that 95% worry about the financial impact on their family members if they were to be diagnosed with a CI.

Taking all these factors into consideration, Singaporeans are strongly recommended to go through regular financial health reviews with their financial advisers to continually narrow the gap between their critical illness coverage and potential total cost of a CI diagnosis which includes medical bills and loss of income, among other expenses.

³ Loss of household income could amount to $7,624 each month, based on 2015 median monthly household income excluding employer CPF contribution in Singapore – ‘Table 18A. Average and Median Monthly Household Income from Work (Excluding Employer CPF Contributions) Among Resident and Resident Employed Households, 2000 – 2015’ (2016) Department of Statistics Singapore. Singapore. Available at: http://www.tablebuilder.singstat.gov.sg/publicfacing/createSpecialTable.action?refId=7856

Gap #3: Singaporeans seeking protection for more CI conditions across the different stages