3 Types of Critical Illness Insurance In Singapore

No one wants to think about getting critically ill, but unfortunately, it can happen. Critical illness insurance is designed to provide financial support in the event of a serious illness.

However, with so many different types of critical illness insurance available, it can be difficult to know which is the best early critical illness insurance in Singapore.

This article will explore the different types of critical illness insurance available, including standalone critical illness insurance and life insurance with critical illness riders.

By understanding the differences between these types of insurance, you can decide which one is best suited to your needs. So, let's dive in and explore the world of critical illness insurance!

#1. Standalone Critical Illness Insurance

Standalone critical illness insurance is a type of insurance that provides a lump-sum payment if the policyholder is diagnosed with a critical illness that is covered by the policy.

This type of insurance is designed to help cover the costs associated with a critical illness, such as medical bills, living expenses, and other costs that may arise during recovery.

Standalone critical illness insurance policies typically cover various illnesses, from early to late-stage critical illnesses. It can also cover just a select few medical conditions, depending on how many conditions you want or need to be covered for.

Standalone critical illness insurance also offers a one-time payout or provides multiple payouts up to 6X your sum assured – making it extremely popular to many.

While this type of insurance can be more expensive than other options, it provides peace of mind knowing that you will have financial support if you are diagnosed with a critical illness.

#2. Whole Life Insurance with Critical Illness Rider

Whole life insurance with critical illness rider is a type of critical illness insurance that combines the benefits of a traditional whole life insurance policy with additional protection against critical illnesses.

This type of insurance pays out a lump sum benefit if the policyholder is diagnosed with a covered critical illness, such as cancer, heart attack, or stroke.

The critical illness rider is an optional add-on to the whole life insurance policy, which means that policyholders can customize their coverage to fit their specific needs and budget.

The benefit paid out by the critical illness rider can be used to cover medical expenses, pay off debt, or cover living expenses during a period of recovery or disability. This can provide financial security and peace of mind during a difficult time.

Due to the added protection, whole life insurance with critical illness riders typically has higher premiums than traditional whole life insurance policies. However, the cost may be worth it for those who want extra security and protection against critical illnesses.

It is also usually cheaper than standalone CI plans.

#3. Term Life Insurance with Critical Illness Rider

Term life insurance with critical illness rider is a type of insurance that combines both life insurance and critical illness coverage. This policy pays out a lump sum in the event of the policyholder's death or if they are diagnosed with a critical illness covered by the policy.

The critical illness rider typically covers a range of illnesses, such as cancer, heart attack, stroke, and kidney failure. They usually just cover the 37 critical illness conditions defined by the Life Insurance Association Singapore. The coverage amount for critical illness is usually a percentage of the total policy amount.

The premiums for this type of insurance are generally higher than a regular term life insurance policy but lower than a standalone critical illness policy and a whole life plan with a critical illness rider.

It can be a good option for those who want both types of coverage but don't want to pay for two separate policies.

It's important to note that the critical illness rider may have specific terms and conditions, such as exclusions for pre-existing conditions or a waiting period before the coverage kicks in.

It's important to read the policy carefully and understand the terms before purchasing.

Conclusion

In conclusion, many types of critical illness insurance are available to fit your specific needs and budget. It's important to understand what each type covers and to choose the one that provides the most comprehensive coverage for your individual situation.

Whatever type you choose, having critical illness insurance can provide peace of mind and financial security during a difficult time. Don't wait until it's too late, protect yourself and your loved ones today.