Did you know that about 36 people in Singapore get diagnosed with cancer every day? While this sounds pretty scary, there's some good news too. Thanks to advances in medicine, the survival rate for cancer has been going up, with more than half of patients surviving for at least five years after diagnosis.
In Singapore, getting sick can not only take a toll on your health but also on your wallet. Medical treatment here can be expensive, and it's not uncommon for people to worry about how they'll manage the bills. This is where having the right insurance plan can make a big difference, easing the financial burden and stress.
Many of us have some form of hospitalization insurance that helps cover the cost of treatment. However, all Integrated Shield plans taken up or renewed from 1 April 2023, will only cover Cancer Drugs which are approved in the Cancer Drug List1 within a limit set by the insurers. When it comes to serious illnesses like cancer, having additional Critical Illness Insurance can provide extra protection. This type of insurance can help you cope with the financial challenges that come with a critical illness, giving you peace of mind during a difficult time.
How will the Introduction of Cancer Treatment Coverage Limits in our Integrated Shield Policy affect us?
Policyholders affected by the introduction of limits on cancer coverage in Singapore Integrated Shield Plans may experience the following impacts:
- Increased out-of-pocket costs: If the coverage for cancer treatment is limited, policyholders may have to bear a larger portion of the treatment costs themselves, leading to increased out-of-pocket expenses.
- Need for additional coverage: Policyholders may need to consider purchasing additional insurance coverage or riders to supplement the limitations imposed by their existing plans, ensuring comprehensive coverage for cancer treatment.
- Potential financial strain: The introduction of coverage limits could potentially place financial strain on policyholders, especially in cases where the cost of cancer treatment exceeds the coverage provided by their insurance plans.
- Risk of inadequate coverage: Policyholders may face the risk of inadequate coverage for certain types of cancer treatment or procedures, which could impact their ability to access necessary medical care.
- Review and reassessment of insurance needs: Policyholders may need to review and reassess their insurance needs to ensure that their coverage aligns with their health requirements and financial capabilities, considering the changes implemented by their insurance providers.
How does Early Critical Illness Insurance work?
Let's dive into how Early Critical Illness (ECI) insurance differs from traditional Critical Illness (CI) policies. With a typical CI policy, you can only make a claim once the illness reaches a severe or critical stage. However, ECI coverage goes a step further by including early and intermediate stages of the illness. For instance, an ECI plan allows you to make a claim when you need a pacemaker, not just after a major heart attack.
One standout feature of ECI policies is that you receive the payout as soon as the illness is diagnosed. This quick access to funds gives you the flexibility to consider various options, such as seeking second opinions, taking time off work without pay, or even temporarily stepping back from work to focus on your recovery journey.
Benefits of Having an Early Critical Illness Plan
ECI provides a lump sum payout that complements hospitalization insurance
Medical treatment costs do not only start to weigh in at advanced stages of illnesses. There are numerous treatments administered in the initial stages of the disease, and Singapore has been ranking high on medical inflation. Hospitalization insurance plans come with exclusions that limit what’s claimable, such as medical aids, transportation, non-traditional medical treatments(TCM), cost of caregiving, etc. These are the necessary costs incurred in the recovery process. Complement existing hospitalization insurance with ECI plans for holistic coverage.
ECI extends coverage beyond the Life Insurance Association (LIA) list for the severe stage of 37 common critical illnesses
To meet the criteria for a traditional CI policy payout, the diagnosed illness needs to meet the standard definition of 37 chronic sicknesses. The ECI plan bridges this gap, covering other forms of diagnoses beyond the defined list.
Access to funds in the early stage of critical illness, with the ECI policy, can mean more resources towards earlier medical intervention and better treatment outcomes. For illnesses such as Alzheimer’s Disease, where a complete cure is unlikely, being able to treat and slow down the effects of the illness early can be significant to both the patient and caregivers.
ECI payout can solve non-medical related financial problems
The sum assured for the diagnosis of a covered Early Critical Illness can become a provision for many things, including non-medical related ones. I once made an Early Critical Illness claim for a client in 2015 who decided to set aside the money for his child’s education. It may not relate directly to his treatment, but the peace of mind that comes with knowing that he has provided for this commitment improves his emotional state in his path to recovery.
How to add Early Critical Illness Coverage to Your Portfolio?
Inclusion of ECI as a Rider with the purchase of any whole life insurance
The inclusion of an ECI rider means that the policyholder pays slightly more premium on top of the life insurance. The application process is two in one.
Purchase a standalone ECI plan
The easiest solution is to purchase a standalone plan that provides a lump sum cash payout if Early Critical Illness strikes. It draws a clear line between ECI and the other policies that one owns, offering organized tracking and a clear view of the differentiated benefits. Also, standalone plans allow for multiple claims, a feature often not available in add-on rider plans.
Ensure Comfort in Time of Need
If you wish to consider the possibility of adding Early Critical Illness coverage to your portfolio, send us an enquiry below or download our “Early Critical Illness Insurance Plans Guide” to get started. It offers an overview of ECI plans available in Singapore.
NEED ANY HELP?
If you want to know more about Critical Illness Insurance or any other enquiries, you may contact us through whatsapp, schedule an appointment with me or fill up the form below and I will get back to you as soon as possible.
Andrea Loh
Associate Director
RNF No. LLP200146556
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