Knowledge Centre
What is serious or critical illness cover?
A serious or critical illness plan is an insurance policy which covers the insured against life-threatening critical illnesses namely Heart Attack, Stroke and Cancer. A serious or critical illness policy holder gets a lump sum payout if the policyholder is diagnosed with a critical illness namely Heart Attack, Stroke and Cancer within the policy tenure.
Why do you need serious or critical illness cover?
Treatment of serious or critical illness usually involves much more costs compared to other illnesses. Treating such critical illnesses may require multiple visits to the hospital over a long period of time. In addition to the hospitalisation expenses, there will be other costs like fees on doctor visits, expensive drugs, regular diagnostics and tests. A patient with a critical illness may not also be able to work for a period of time, which may cause financial stress to the family at a time, when it is coping with the high medical expenses. A critical illness cover can help the policyholder to ensure financial stability in difficult times. Expat Income Protection Series 2 insurance covers three critical illnesses namely Heart Attack, Stroke and Cancer.
What is the difference between health insurance and serious or critical illness cover?
It is important to understand the difference health insurance and serious or critical illness cover. Regular health insurance plans reimburse hospitalization and medical expenses. On the other hand a critical illness plan will payout a lump sum amount if the policyholder is diagnosed with a critical illness that are covered in the insurance policy. A critical illness cover will not only help you pay your medical expenses, it may also provide financial relief if you are unable to work for a period of time and experience loss of income. Therefore, one should buy serious or critical illness cover even if one is covered under a health insurance plan.
How much serious or critical illness cover should you purchase?
The amount of cover will depend on your financial circumstances. Recovery from serious or critical illness may take several months to a year or even longer. During this period you may be unable to work. Your serious or critical illness benefit should be adequate to meet your household expenses during the period you are unable to work due a serious or critical illness. In addition, you critical illness cover should be able to pay for out of pocket medical treatment expenses (if any), even if they are reimbursable by your health insurance policy. That way, you do not have to dip into your savings at a difficult time. Your critical illness cover should also pay for medical expenses that may not be covered in your health insurance policy e.g. medicines, medical equipment for home use like dialysis machines, ECG monitors, oxygen cylinders etc based on your doctor's advice. In addition to amount of cover, you should also look at the critical illnesses covered in your policy, the waiting period and the claims process. You should consult with an insurance advisor if you need help in selecting a serious or critical illness best suited for your needs.