How critical illness insurance paves the way to a secure future

Life is filled with exciting milestones – from tying the knot and expanding your family to making strides in your career. However, amid these plans, few of us think about how a serious illness could disrupt our lives.

With one in four Singaporeans likely to face a critical illness like cancer at some point in their lives, hospitalisation insurance alone may not cover the full financial impact of recovery, income loss and ongoing care, which can weigh heavily on you and your loved ones.

This is where critical illness (CI) insurance becomes essential, offering the financial safety net to keep your life on track even when unexpected health challenges arise. With options tailored for those in peak health and those managing pre-existing conditions, Singlife’s Critical Illness Insurance plans provide peace of mind as you navigate life’s highs and lows.

HOSPITALISATION VS CRITICAL ILLNESS INSURANCE

Many believe hospitalisation insurance is sufficient for medical emergencies, but this misconception can leave families unprepared for the full impact of a serious illness. In fact, a recent study on consumer attitudes reveals that only four in 10 people fully understand the additional benefits that CI insurance offers*.

While hospitalisation insurance covers immediate medical expenses, it may fall short in protecting your overall finances. This is where CI insurance proves beneficial, providing a lump-sum payout that can be used for essential non-medical expenses, including income replacement, costs of daily living, childcare or therapy. This flexibility aligns with what matters most to policyholders: 47 per cent prioritise income replacement and 53 per cent value extra cash reserves for expenses that aren’t covered by medical insurance*.

Yet despite this clear need, many Singaporeans remain under-insured. There remains a critical illness protection gap of 74 per cent among economically active Singaporeans. This shortfall often arises because people may not have upgraded their CI coverage in line with rising income or lifestyle needs, leaving them under-protected if a health crisis strikes. By reviewing and upgrading CI coverage regularly, you can ensure comprehensive protection as life evolves.

SUPPORTING YOU THROUGH EVERY STAGE OF LIFE

Key milestones in life – like marriage, parenthood or retirement planning – are moments when CI insurance offers vital financial support. It helps ensure that you can focus on recovery instead of finances, no matter the stage of life.

When newly married, shared expenses like living costs and savings become important. In the event of serious illness, CI insurance acts as a financial buffer. For example, if one spouse falls ill, the lump-sum payout can cover essentials like mortgage payments, allowing couples to focus on recovery without dipping into savings or adjusting their lifestyle.

As family commitments increase, so do expenses for childcare, education and healthcare – especially for the sandwich generation supporting both young children and ageing parents. CI insurance eases this burden by providing ongoing assistance over time. For example, if a parent faces a relapse, a multi-payout CI plan’s additional payout can cover evolving costs, from childcare to daily expenses. This helps cover your family’s daily needs while safeguarding assets and long-term savings for your children’s future.

When financial obligations pile up, CI insurance offers a fallback if illness interrupts progress. A lump-sum payout can cover immediate expenses like credit card payments. This allows professionals to concentrate on healing without disrupting their financial plans or needing to liquidate their investments.

FLEXIBLE COVERAGE OPTIONS TO SUIT YOUR NEEDS

The Life Insurance Association recommends CI coverage equal to at least four times one’s annual income. Singlife’s CI insurance plans offer options suited to various budgets and health needs.

Singlife Multipay Critical Illness is designed for long-term support, providing multiple payouts across different illness stages, up to 900 per cent of sum assured. It covers 132 conditions, including cancer, stroke and heart attack. This is ideal for young professionals and families seeking adaptable coverage that evolves with changing needs such as relapses or prolonged recovery.

For those with pre-existing conditions like type 2 diabetes or the three highs (high blood pressure, high cholesterol and high body mass index), there is an option you can consider. Singlife Essential Critical Illness offers core protection for 14 major illnesses, including diabetes and hypertension. This accessible plan provides coverage to ensure financial resilience for those who need it most.

Life’s challenges can be unpredictable, but your financial security doesn’t have to be. Secure your future and support your loved ones with Singlife’s Critical Illness Insurance, designed for every stage of life.

This policy is underwritten by Singapore Life Ltd. This material is published for general information and is not an insurance contract. Full details of the standard terms and conditions of this policy can be found in the relevant policy contract. Protected up to specified limits by SDIC.

*Singlife’s internal proprietary study on consumer understanding, attitudes and preferences on critical illness plans; June 2024 (unpublished).