By Shawn Lee
If you’ve only got a minute:
- Critical illness (CI) insurance provides coverage for the 37 specified conditions identified by the Life Insurance Association (LIA), including heart attack, major cancer, and stroke.
- CI insurance offers a lump sum payout upon diagnosis to help you manage expenses and offset any loss of income, allowing you to focus on your recovery.
- Aim to have CI coverage of at least 4 times your annual income.
Singapore has experienced a rise in the number of CI cases in recent years. Between 2017 and 2021, an average of 46 people were diagnosed with cancer daily, while 16 passed on from the disease each day1.
In 2023, cancer was a leading cause of death in Singapore. According to Ministry of Health (MOH) records, 24.6% of the 26,888 reported deaths were attributed to cancer.
Findings from the 2022 Protection Gap Study by the Life Insurance Association of Singapore (LIA) showed that a working adult in Singapore has an average CI protection gap of 74%, equivalent to S$264,586. In other words, most people have coverage for only around a quarter of the costs needed to fully cover medical treatment and other expenses related to critical illness.
During recovery from a CI, you may face loss of income, high medical expenses, and other financial pressures. Experts recommend obtaining CI coverage equal to 4 times your annual income to better manage these costs.
What is CI Insurance
CI insurance is a type of insurance that provides a lump sum payment if you are diagnosed with a CI.
This lump sum payment can be used to cover a variety of expenses such as:
Medical expenses not covered by health insurance: CI insurance can help to cover the costs of medical treatment, such as surgery, chemotherapy, and radiation therapy. It can also help to cover the costs of experimental treatments and treatments.
Loss of income: Replace your income if you are unable to work due to a CI so as to ensure that you can continue to meet your financial obligations (mortgage payments, car payments and childcare costs)
Home modifications: Help to cover the costs of any home modifications that may be necessary if you are disabled because of a CI. For example, you may need to install a wheelchair ramp or widen doorways.
Travel expenses: Taxi rides, public transportation or airfare and hotel accommodations if you need to seek medical treatment overseas.
Childcare/education expenses: Children continue to receive the care and support that they need.
Funeral expenses: CI insurance can help to cover the costs of funeral expenses, such as burial costs and funeral services.
CI insurance typically insures you for the risk of developing any of the 37 specified CI defined by the LIA, such as major cancer, heart attack and stroke.
Industry list of all 37 CI
| Industry list of all 37 critical illnesses | |
|---|---|
| 1. Major Cancer | 20. Fulminant Hepatitis |
| 2. Heart Attack of Specified Severity | 21. Motor Neurone Disease |
| 3. Stroke with Permanent Neurological Deficit | 22. Primary Pulmonary Hypertension |
| 4. Coronary Artery By-pass Surgery | 23. HIV Due to Blood Transfusion and Occupationally Acquired HIV |
| 5. End Stage Kidney Failure | 24. Benign Brain Tumour |
| 6. Irreversible Aplastic Anaemia | 25. Severe Encephalitis |
| 7. End Stage Lung Disease | 26. Severe Bacterial Meningitis |
| 8. End Stage Liver Failure | 27. Angioplasty & Other Invasive Treatment for Coronary Artery |
| 9. Coma | 28. Blindness (Irreversible Loss of Sight) |
| 10. Deafness (Irreversible Loss of Hearing) | 29. Major Head Trauma |
| 11. Open Chest Heart Valve Surgery | 30. Paralysis (Irreversible Loss of Use of Limbs) |
| 12. Irreversible Loss of Speech | 31. Terminal Illness |
| 13. Major Burns | 32. Progressive Scleroderma |
| 14. Major Organ / Bone Marrow Transplantation | 33. Persistent Vegetative State (Apallic Syndrome) |
| 15. Multiple Sclerosis | 34. Systemic Lupus Erythematosus with Lupus Nephritis |
| 16. Muscular Dystrophy | 35. Other Serious Coronary Artery Disease |
| 17. Idiopathic Parkinson’s Disease | 36. Poliomyelitis |
| 18. Open Chest Surgery to Aorta | 37. Loss of Independent Existence |
| 19. Alzheimer’s Disease / Severe Dementia | |
Why is CI insurance important?
There are 4 key reasons why it may be crucial to get protection.
1. Chances of getting a CI in Singapore are higher than you think
The top 5 CIs in Singapore are:
Cancer: The leading cause of death in Singapore. On average, about 1 in 4 people will be diagnosed with cancer in their lifetime. There are many different types of cancer, and the treatment options will vary depending on the type of cancer.
Heart disease: The 2nd leading cause of death in Singapore. According to the National Heart Centre Singapore, about 1 in 2 Singaporeans will develop heart disease in their lifetime. The number of heart attack episodes increased from 8,014 in 2011 to 12,403 in 2021.
Stroke: The number of stroke episodes in Singapore has increased from 6,143 episodes in 2011 to 9,680 episodes in 2021. According to the National Stroke Association of Singapore, about 1 in 4 Singaporeans will have a stroke in their lifetime.
Liver disease: According to research2, about 1 in 10 Singaporeans will develop liver disease in their lifetime.
Kidney disease: It can be caused by a variety of factors, including diabetes, high blood pressure, and autoimmune diseases. According to the National Kidney Foundation of Singapore, about 1 in 10 Singaporeans will develop kidney disease in their lifetime. Kidney disease can lead to kidney failure, which requires dialysis or a kidney transplant.
CI insurance can help to pay for your medical expenses and cushion the financial impact of an unforeseen and serious illness.
It also provides financial protection and ensures that you and your family’s living expenses continue to be met during this difficult period.
2. Hospitalisation insurance isn’t a substitute for CI insurance
You might be wondering: why get CI insurance when you already have MediSave, MediShield Life or your own private/company hospitalisation & surgical insurance coverage?
Hospitalisation insurance covers your hospitalisation expenses and treatment costs, including relapses. While it does mitigate your medical costs to some extent, there are limitations.
For instance, you usually can’t claim for anything outside of your medical expenses or treatment such as loss of income. Integrated Shield Plans typically cover post-hospitalisation only for up to a year. For MediSave, there are also caps to how much you can utilise it for each type of procedure.
Find out more about: Integrated Shield Plans with POSB
On the other hand, CI insurance is a lump sum cash payout that gives you the flexibility on how you want to use it. For example, you can use it for your family’s living expenses while you take a break from work during your recovery phase.
You can also use it to pay for medical needs that are not covered by your hospitalisation insurance.
Some CI insurance may provide multiple payouts in the event of a CI relapse.
3. It lets you focus your mind on recovery
Dealing with a CI isn’t just physically and emotionally exhausting, it can also be financially draining. With CI insurance, the payout helps take care of your finances and loss of income so that you can focus on recovery.
Some CI plans may cover your Intensive Care Unit (ICU) stay.
4. CI coverage is not as expensive and complicated as you may think
The cost of coverage will vary depending on your age, health, and the amount of coverage you choose. However, there are affordable options available for most people.
Getting CI coverage does not need to be out of your budget or complicated.
These plans provide coverage for a variety of CIs, including cancer, heart disease and stroke.
Find out more:
- Manulife Early CompleteCare (all stages of CIs and multiple CI protection)
- eCriticalCare (death and 37 different CIs)
- CancerCare (cancer and death benefit)
- ProtectFirst (big 5 CI, life protection and serious accident)
Read more: What is Critical Illness insurance?
How much CI coverage do you need: Where to begin
The first step is to understand what your personal CI insurance gap is.
If you are not sure how much coverage you need or need a refresher, the CI calculator in digibank will come in handy.
Simply key in your number of dependents, savings, and existing coverage and we will crunch the numbers and determine your CI protection gap if any.
Lastly, DBS has partnered with major insurers in Singapore to make health insurance easily accessible online for purchase. You can now independently learn, compare and buy a plan most suited to your own needs.
Find out more on DBS Health Marketplace.
