Karen Tang, CFP®: Certified Financial Planner in Singapore

Critical Illness Insurance is More Crucial Than Ever Before

Should you get criticial illness insurance?

Insurance is a great risk management tool that you can get at an affordable price in exchange for the leverage it gives you.

Insurance is fundamental in a sound financial plan. The financial burden can be tremendous when unforeseen happens. Your plans and goals can derail and you can suffer financially if you are unable to work for a prolonged period. Hence, insurance aims to protect your wealth and is something you need to address first, before investing.

A topic close to my heart is critical illness insurance.

I have seen those who have to compromise on their medical care because of the uninformed decisions they made. I have also seen those who have adequate critical illness insurance and were able to recuperate with peace of mind.

With increasing occurrences of cancer, stroke, and heart diseases in Singapore, Singaporeans need to pay more attention to their critical illness coverage.

And it is more crucial now than ever during this Covid-19 pandemic!

What Is Critical Illness Insurance?

It pays you a lump sum in the event you suffer from one of the major illnesses covered in the plan. Examples of covered illnesses include major cancers, stroke, heart attack.

What Can This Lump Sum Payout Do For You?

You can use this money however you see fit.

1) Replace your income
2) Sustain living expenses
3) Fund caregiving costs
4) Pay for a domestic helper
5) Pay for alternative therapy, better dietary foods, transportation expenses
6) Other ancillary expenses

This is not to be confused with your health insurance that takes care of inpatient hospitalisation and surgical expenses and some outpatient bills.

Different Types of Critical Illness Coverage

1. Those that cover only major (i.e. late/severe stage) illnesses and allow for one claim.

2. Those that cover early, intermediate and late-stage illnesses and allow for one claim.

3. Those that pay multiple claims on early, intermediate, and late-stage illnesses.

The multipay type of Critical Illness Insurance is the latest and most ‘evolved’ kind of coverage you can get. It offers a comprehensive spectrum of benefits, including coverage for relapses. Most importantly, you are still covered after one claim.

Read my article 3 Compelling Reasons Why a Multipay Critical Illness Plan is Your Best Bet for Comprehensive Protection in Singapore to learn more.

Critical Illness Insurance Is Absolutely Critical!

I can’t emphasize more.

Do you have sufficient critical illness coverage for your family to take care of you and continue to live their lives with minimal disruption if something unexpected were to happen to you?

And don’t forget to cover homemakers too! The current COVID-19 pandemic shows just how unpredictable and fragile life can be.

Call me today for a discussion on your existing coverage and how you can best fortify your critical illness protection needs!

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