According to LIA’s Protection Gap Study – Singapore, economically active Singaporeans and Permanent Residents (PRs) have a critical illness protection need of 3.9 times their average annual income.
To get to this figure, LIA assumes a 5-year recovery period for critical illnesses. This represents the time a person would take to either beat the critical illness and return to becoming economically active or succumbing to their illness.
During this crucial 5-year period, a critical illness payout would replace a person’s income for their day-to-day expenses and debt repayments, pay for costly treatments not covered by MediShield Life or an private integrated shield plan (IP), and could help to pay for additional help around the house that may be required, such as a domestic helper or a caregiver for young children and elderly parents.
The overall shortfall, or critical illness gap, that Singaporeans and PRs had amounted to 3.1 times their average annual income.
To add to that, 4 in 5 Singaporeans continue to face a lifetime of chronic health conditions even after recovering from a critical illness. Worse still, 1 in 3 did not have critical illness coverage when they were first diagnosed.