{"id":1149,"date":"2023-02-20T11:40:00","date_gmt":"2023-02-20T03:40:00","guid":{"rendered":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/?p=1149"},"modified":"2023-02-18T23:58:59","modified_gmt":"2023-02-18T15:58:59","slug":"critical-illness-early-critical-illness-insurance-plans-in-singapore-five-reasons-why-theyre-necessary","status":"publish","type":"post","link":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/critical-illness-early-critical-illness-insurance-plans-in-singapore-five-reasons-why-theyre-necessary\/","title":{"rendered":"Critical Illness (& Early Critical Illness) Insurance Plans in Singapore: Five Reasons Why They\u2019re Necessary<\/strong>"},"content":{"rendered":"\t\t
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The effects of critical illness (CI), whether in its early, intermediate, or late phases, can be debilitating, and not just merely to one’s health but also to their pocket.<\/span><\/p>

However, by adhering to good health practices, we can lessen our vulnerability to life-threatening diseases. In the same way, the financial fallout from a CI can be mitigated with adequate insurance coverage.<\/span><\/p>

What is critical illness insurance? Why is it important? How much coverage do we need? What kinds of critical illness coverage are available in Singapore? All of these questions will be answered in this comprehensive guide.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Critical Illness Vs. Early Critical Illness\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Singaporean Life Insurance Association (LIA) has standardized definitions for 37 critical illnesses (CIs).<\/span><\/p>

The severity (lateness\/advancement) of these illnesses is normal. All insurance companies use the same meanings for these terms.<\/span><\/p>

Periodically, these definitions go through a series of modifications aimed at improving clarity and openness for consumers. These changes also ensure that if you file a claim with one firm, another company cannot deny it because the definitions are the same.<\/span><\/p>

In contrast, the terms Early Critical Illness (ECI) and Early-Stage Critical Illness (ECI) are used to describe CIs in their initial and\/or intermediate phases.<\/span><\/p>

Though there are agreed-upon definitions for later-stage critical illnesses (CIs), no such thing exists for ECIs. That is to say, not all insurance providers will use the same terminology when referring to ECIs.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Basics of Critical Illness Coverage: What Is It and How Does It Work?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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During an insured event, the policyholder receives a lump sum payment from their critical illness insurance.<\/span><\/p>

An early, moderate, or late stage critical illness, as well as other specified illnesses, may qualify as the insured event, depending on the insurance.<\/span><\/p>

The CI protection could either be a separate insurance plan or an add-on to a life insurance policy (e.g., term insurance and whole life insurance).<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Here Are Five Indications That Critical Illness Protection Is Necessary\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Is it recommended to have critical illness coverage in Singapore? Is it beneficial to obtain it?<\/span><\/p>

For those who can afford it, CI coverage is worth considering for the following reasons:<\/span><\/p>

(1) The likelihood of having a serious illness is more likely high<\/b><\/h3>

Singaporeans today may have a longer life expectancy of 83.9 years, but we also suffer from chronic illnesses for a longer period of time (<\/span>10.6 years<\/span><\/a>).<\/span><\/p>

Chronic diseases like hypertension, high cholesterol, diabetes, etc., are more common now than they have ever been. Nonetheless, they are not as serious as critical illnesses.<\/span><\/p>

Today, cancer is the leading cause of death and the most prevalent critical illness in Singapore. In fact, <\/span>according to SmartWealth (2023)<\/span><\/a>, one in four to five Singaporeans may develop cancer before the age of 75.<\/span><\/p>

(2) The expenses associated with treating a CI is high<\/b><\/h3>

The\u00a0 health impact of a critical illness is just as huge as the financial concern it poses.<\/span><\/p>

Since the cost of healthcare continues to rise on an annual basis, you should anticipate that the typical hospital bill will become significantly more expensive over time.<\/span><\/p>

The costs for treating late stage cancer can range from $100,000 to $200,000 per year due to the multifaceted nature of care required (surgeries, radiation, chemotherapy, and etc.).<\/span><\/p>

(3) The hospital plans may not be enough<\/b><\/h3>

If you are a citizen or permanent resident of Singapore, you are eligible for MediShield Life, the country’s national health insurance program. And most consumers would have upgraded to an Integrated Shield Plan from their original basic plan.<\/span><\/p>

This is still one of the most fundamental parts of a good insurance portfolio, and it will provide you with the best medical insurance coverage possible.<\/span><\/p>

As an example, if you suffer a critical illness and end up in the hospital or need surgery, you may be able to get reimbursed for your medical expenses.<\/span><\/p>

However, there might be some limitations. For instance,alternative treatments are unlikely to be covered.<\/span><\/p>

(4) A CI can hinder one’s capacity to earn a living\u00a0<\/b><\/h3>

Your hospitalization plan may help pay for your treatment while you still need healthcare services, but you may be unable to return to work and make an income until your condition improves.<\/span><\/p>

However this does not end our other financial obligations and expenses.<\/span><\/p>

How are you going to pay for all that?<\/span><\/p>

If you have money and assets set aside specifically for emergencies, that’s fantastic. But if you don’t, you’ll have to find a way to get money and pay for your bills.<\/span><\/p>

Compensation for loss of income plans might give you the funds you need to get by while you’re recuperating.<\/span><\/p>

(5) The basic life insurance protection may not be enough<\/b><\/h3>

The basic life insurance coverage may refer to policies that pay out only in the event of death or total and permanent disability (TPD).<\/span><\/p>

Since you are more likely to get struck by a critical illness, obtaining such coverage (and proper amounts) is a good beginning, but it may not be sufficient.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What Level of Critical Illness Insurance Do You Necessitate?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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There has been a lot of discussion concerning the frequency and consequences of a critical illness. But, have we taken some actions\u00a0 to remedy the situation?<\/span><\/p>

In 2017, the Life Insurance Association (LIA) conducted a <\/span>study<\/span><\/a>. The 87-page paper states that the typical working adult in Singapore has only $59,776 in CI coverage.<\/span><\/p>

According to Smart Wealth (2023),\u00a0 this was close to the average life insurance claim, which was $52,343.37.<\/span><\/p>

Try to answer this question for yourself: Is this enough? Most likely not, and that’s why most people have inadequate coverage.<\/span><\/p>

Yes, but how much is enough?<\/span><\/p>

According to the LIA’s research, it’s important for adults to have enough CI to get them through a full five years of rehabilitation. That works out to an average of $316,603. When this sum is subtracted from the amount of existing CI coverage ($59,776), the resulting gap in CI coverage is $256,826.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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To wrap things up:\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A critical illness can have serious psychological, physiological, and even financial consequences.<\/span><\/p>

Despite the fact that the mental and physical suffering will always be there, the financial suffering can be avoided.<\/span><\/p>

If you have critical illness insurance or early critical illness insurance, you can have more peace of mind knowing that your financial situation will be taken care of in the event of a critical illness diagnosis.<\/span><\/p>

Take the first step and get protected with the critical illness & early critical illness insurance policies in Singapore!<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

The effects of critical illness (CI), whether in its early, intermediate, or late phases, can be debilitating, and not just merely to one’s health but also to their pocket. However, by adhering to good health practices, we can lessen our vulnerability to life-threatening diseases. In the same way, the financial fallout from a CI can […]<\/p>\n","protected":false},"author":1,"featured_media":1151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[27,36],"tags":[],"class_list":["post-1149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-retirement"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-content\/uploads\/2023\/02\/Understanding-Careshield-Article-Feature-Image-1-1.png?fit=1507%2C969&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/posts\/1149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/comments?post=1149"}],"version-history":[{"count":4,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/posts\/1149\/revisions"}],"predecessor-version":[{"id":1166,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/posts\/1149\/revisions\/1166"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/media\/1151"}],"wp:attachment":[{"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/media?parent=1149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/categories?post=1149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sg-financialadvice.com\/UnderstandingCareshieldLife\/wp-json\/wp\/v2\/tags?post=1149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}