Critical illness insurance plays an important role in providing a financial safeguard for you and your loved ones. In the event you are diagnosed with a critical illness, you will receive a lump sum payout from the policy.
This payout is typically meant to tide you through daily living expenses during your recovery, at a time when you may not be able to work and earn a salary, as well as give you additional options to seek medical treatments or complementary therapy.
Such lump sum payouts enable you to protect your and your loved ones’ way of life without eating into savings and investments earmarked for other important expenses.
For those purchasing critical illness insurance from 26 August 2020 onwards, you will be looking at an updated set of definitions for the standard list of 37 critical illnesses. This was announced by the Life Insurance Association (LIA) on 29 August 2019, under its Critical Illness Framework 2019.
Here are four things you should understand about the changes contained within LIA’s Critical Illness Framework 2019.