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Should you buy Early Critical Illness (CI) insurance?

jaeo finance early critical illness insurance policy in singapore

With Singapore being the most expensive city in the world, it is no surprising to have this common saying that it is better to die from a critical illness than to be paying for expensive medical bills. However, with the right insurance policies, the medical costs can be alleviated.

Most of us are covered by MediShield Life or Integrated Plans for hospitalisation insurance. However, having hospitalisation insurance alone is not enough. This is where early critical illness insurance can come in and help you financially in the event of any critical illnesses.

What is Early Critical Illness insurance?

Early Critical Illness insurance works similarly to how normal Critical Illness insurance does. The difference is that Early Critical Illness insurance provides a lump sum payout upon the diagnosis of any critical illness during early and intermediate stages whereas normal Critical Illness insurance only provides the payout when the illnesses are in the severe or critical stage.

With the payout from Early Critical Illness insurance, you would have more options in decision making such as seeking additional medical options or take unpaid leave from work and focus on recovery.

Why you should buy Early Critical Illness insurance

1. Lump sum payout to cover the initial stages of a disease

As discussed in this article, the recovery journey of a major illness is a long and expensive one. Many people have this misconception that a hospitalisation plan alone is enough for health insurance, and the cost of medical treatment only gets expensive when it progresses to the advanced stage. Not only is this a misconception,  hospitalisation insurance does not include the treatments being administered in the initial stages of the disease.

In addition, there are exclusions under hospitalisation insurance such as medical aids, transportation, non traditional medical treatments, cost of caregiving. Although these are part of the recovery process, these are not covered under hospitalisation insurance.

2. Early Critical Illness insurance covers beyond the Life Insurance Association (LIA) list for the severe stage of 37 common critical illnesses

The payout from Critical Illness insurance can only be claimed if the said illness fulfils the definition of 37 chronic illnesses. With Early Critical Illness insurance, you will be covered for other forms of diagnoses that are not covered by the traditional Critical Illness insurance.

If one is diagnosed with a critical illness and can claim a payout under his/her Critical Illness insurance, the timing of when the claim is made can make a big difference.

If you have a payout from Early Critical Illness insurance, you would have more resources for earlier treatments. Being able to treat an illness early can make a significant to both the patient and the caregivers.

3. Early Critical Illness’ payout can solve miscellaneous financial problems

Should one be diagnosed with an early critical illness, he/she will be able to receive a payout from his/her Early Critical Illness insurance. With the payout, he/she can use it for miscellaneous financial problems such as the lack of income during unpaid leave for treatment, expenses to pay for a domestic helper if required.

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