There are 3 insurance plans we need to have: LIFE, MEDICAL and ACCIDENT. Among these 3, MEDICAL policy is the most important followed by LIFE coverage. Life coverage covers 3 areas: death, total & permanent disability and critical illness protection.
In the event of hospitalisation, we all know how expensive it is and how detrimental to our finances if we don’t have enough protection. In the event of critical illness, we want the best hospital or doctor to treat us. Having said that, it needs a lot of money to be able to afford their professional fee and the best medical care available. If you don’t have that kind of protection, you might end up selling all the assets you have to support your medication.
When we say CRITICAL ILLNESS, there are 3 stages involve: EARLY, INTERMEDIATE and LATE stage.
In case you are not aware, critical illness is not just about cancer, stroke or heart attack. In fact, there are more than 40 illnesses covered under this condition. These even includes coma, loss of sight, loss of hearing, burns, paralysis and many others.
Let’s take for example cancer. It has stages from stage 1 to stage 4. Stage 4 is considered as the LATE stage. In stroke cases, there are mild and major kind of stroke. Some critical illnesses don’t have early stage, but go directly to late stage once diagnosed. These includes terminal illness, elephantiasis, palsy and the rest.
For the critical illness insurance coverage, you need to make sure what kind of protection you have. Is it for CRITICAL ILLNESS or is it EARLY CRITICAL ILLNESS coverage?
If what you have is for CRITICAL ILLNESS, then you can only claim if the diagnosis is on LATE stage. Plus it have 30 days waiting period to file a claim, after the diagnosis. It means, if a client is diagnosed with a mild stroke or a stage 1 cancer, you cannot file a claim. You need to wait till it get worse or evolve in a late stage. That’s how it works.
On the other hand, if what you have is an EARLY CRITICAL ILLNESS coverage, it covers all stages of illnesses from early to late stage. Waiting period is only 7 days to file a claim, after the diagnosis.
An average people can incur more than 2 critical illnesses in our lifetime. For sure you are aware that some people get diagnose with mild stroke or mild heart attack and survive. In future there’s a great possibility that they may get ill again of different or same illness.
The point is, in terms of usability, EARLY CRITICAL illness coverage makes more sense than a CRITICAL ILLNESS plan. Having a late stage illnesses is almost like the end of the rope. And as I noted, there’s a big probability that whatever illnesses we might have in the future is only in an early stage.
Isn’t it great to have a policy that covers you at any stage?
The question now is, what coverage did you have on your current policy? Does it says CRITICAL ILLNESS or EARLY CRITICAL ILLNESS coverage?
If you the right policy, next questions is, is it ENOUGH?
To get early critical illness protection, you only have two option: get TERM insurance or get a VUL/Investment Linked Plan.
At the end of the day, get a comprehensive plan that your budget can have. These seems complicated with all the jargons and technical terms written on your policy. If need help, always ask your financial advisor or look for one you can count on.
Did you know that insurance policies in Singapore is one of the cheapest you can get? Even foreigners can apply and same world wide coverage. In case you questions, you need quotation, queries on your existing policy, feel free to contact me. If you are in Singapore, we can sit down and discuss the best policy suitable for your needs. Let’s have coffee and have discussion 🙂