With 1 in 3 Singaporeans dying of cancer, critical illness is something many of us might have to contend with (choy!) at some point in our lives.
That’s why critical illness insurance is a good idea if you can afford it. Ideally, you want a plan that offers good coverage for early, immediate and advanced stages of a critical illness.
Let’s have a look at what’s available in Singapore.
*Note that from 26 August 2020, new definitions for Critical Illness will come into effect, so check carefully before buying a plan. You may refer to the Life Insurance Association’s website.
Best critical illness insurance plans in Singapore (2020)
As you probably know, insurance premium prices are very specific to the buyer’s profile. For this article, we compared the starting quotations for a 35-year-old, non-smoking woman.
|Sum Assured||Yearly Premium|
|FWD Cancer Insurance||$100,000||$348|
|Aviva My Early Critical Illness Plan||$100,000||$750.60|
|Great Eastern Critical Care Advantage||$100,000||Currently undergoing revision|
|AIA Power Critical Cover||$100,000||$1,819|
|AXA Cancer ReCover||$100,000||$2,692 (after 3 years of cancer remission)|
|Manulife ReadyComplete Care||$100,000||$1,267.60|
|NTUC Income Silver Protect||$100,000||–|
|Tokio Marine TM Early Cover||$100,000||$1,189|
*Quotations are starting prices for a 35-year-old non-smoking female.
Unlike buying random stuff like toilet paper, when it comes to something as important as insurance, price should not be your main and/or only consideration factor. In other words, don’t just sign up for the cheapest available plan.
You also need to consider the coverage and features of each policy, which we’ll discuss in the following sections.
This critical illness plan is geared towards cancer, and pays 100% of the sum assured of up to $200,000 for all cancers at all stages.
The main drawback of FWD’s cancer insurance that it is limited to cancers. By contrast, most other critical illness plans will cover a series of conditions other than cancer, but might only offer protection against early or intermediate stage cancer.
Once the policy holder is diagnosed with cancer, the lump sum is paid out in full and the policy is terminated. This means you will not be covered for relapses.
Aviva My Early Critical Illness Plan
Aviva’s critical illness plan offers a payout of up to $250,000 for 51 critical illnesses, including cancer, heart attack and stroke. Unless otherwise stated, all conditions will qualify you for payouts at early, intermediate and late stages.
They’ve got policy terms of 10 years, 20 years, 30 years and until age 99, which makes this plan a cost-effective choice if you’re on a budget and are only looking for protection for a decade or two.
PRUTriple Protect is one of the most comprehensive critical illness plans out there. The maximum amount of coverage is a hefty $3,000,000.
Unlike some of the more bare-bones policies on this list, your cover doesn’t stop once you make your first major claim. 12 months after your claim, your coverage amount gets restored to 100%. You can then continue to claim up to 300% of your sum assured, and make claims for multiple illnesses.
One drawback is that the policy may not cover you in the early stages of an illness. To enjoy that, you’ll have to spend more money on their Early Protector rider that lets you extend your cover to pre-critical stages.
Great Eastern Critical Care Advantage
Great Eastern’s Critical Care Advantage policy offers protection against early, intermediate and critical stages of 37 diseases such as major cancers, heart attack and stroke. You are entitled to up to $100,000 worth of protection in early stages, $200,000 in intermediate stages and a generous $3 million in critical stages.
There is also a Special Benefit for cancer recovery, amounting to 10% of the sum assured capped at $10,000 for intermediate stage cancer and 25% capped at $25,000 for critical stage cancer.
When you make a successful early or intermediate stage claim, your coverage continues but you no longer need to pay premiums.
AIA Power Critical Cover Value Plan
The AIA Power Critical Cover Value plan offers coverage for a very long list of illnesses, one of the longest on the market, including major cancers, kidney failure and heart attack. Many of these conditions, including all of those just mentioned, qualify for payouts at early stage, intermediate stage and major stage.
After each claim, your coverage is restored after 12 months. You can potentially receive up to 500% of your coverage amount through multiple claims.
For those who are wondering what happens if you have a relapse, the plan offers a Power Relapse Benefit which pays up to 200% of the sum assured if you are re-diagnosed with a major cancer, suffer from another heart attack or stroke or have another major organ or bone marrow transplant or heart valve surgery.
AXA Cancer ReCover
The AXA Cancer ReCover plan is a little unusual because it’s targeted at cancer survivors who’ve been in remission for at least 3 years, and who usually have a tough time getting insured. The plan offers protection of up to $250,000 against a recurrence of the cancer, or a new primary cancer.
If you are diagnosed with advanced stage cancer, you receive 100% of the sum assured. Early stage or intermediate stage cancers will net you 15%.
Manulife ReadyComplete Care
The Manulife ReadyComplete Care plan covers 36 conditions and critical illnesses at all stages, including major cancers, kidney failure, lung disease and heart attack.
To get coverage after a first full claim, you will have to purchase the Cover Me Again rider, which entitles you to 100% of the sum insured if you subsequently suffer from recurring cancer at the advanced stage.
NTUC Income Silver Protect
NTUC Income Silver Protect is a term insurance plan that protects seniors aged at least 50 from early and advanced stage cancers.
How it works is that you receive the full sum assured when you are diagnosed with an advanced stage cancer, and 25% when diagnosed with an early stage cancer. Those diagnosed with terminal cancer receive up to 15%of the sum assured for hospice and palliative care.
Tokio Marine TM EarlyCover
Tokio Marine’s TM EarlyCover offers up to $350,000 worth of coverage for early stage and intermediate illnesses on their list, and 100% of the sum assured for advanced stage illnesses including major cancers, heart attack, stroke and kidney failure. 31 of the 36 illnesses are covered for all three stages.
Available riders include Payment Benefit Riders as well as Spouse Riders so your other half can receive protection, too.
Does critical illness insurance pay if you die of cancer?
Critical illness insurance is generally not designed to benefit your family much if you actually die of cancer. You’ll get your 100% payout if you are diagnosed with cancer, but not upon death.
If you pass away, many policies will offer a small payout that can range from $5,000 to $20,000, or be calculated as a portion of your sum assured. However, if you want your family to receive a meaningful payout when you die, look at buying life insurance in addition to your critical illness protection.
Do you have critical illness insurance? Tell us why or why not in the comments!