Due to the more specific definitions in the majority of changes being implemented, you may be tempted or pressured to purchase critical illness insurance before the 26 August 2020 deadline.
As mentioned, these changes have both pros and cons for policyholders, so do not rush into making any decisions to buy before fully understanding the policy. Also, some insurers may have already introduced their new critical illness insurance, adhering to the updated definitions. Hence, do check which definitions you are buying into.
Furthermore, if you already own a critical illness insurance policy and wish to enhance your existing coverage, insurers have the discretionas to whether to follow the updated definitions. The same applies to auto-renewable critical illness insurance or critical illness insurance bought as a rider on another policy.
This means you may not have to rush to increase your coverage levels. Do check with your insurer on options available to you.
Before purchasing critical illness insurance, you should also understand how much coverage you need. You can look to LIA’s 2017 Protection Gap Study – Singapore as a guide, which recommends having enough coverage to last for an assumed critical illness recovery period of five years.