What you need to know about critical illness (CI) insurance

Thinking about getting critical illness insurance but not sure where to start?

When considering insurance, critical illness (CI) insurance is one of the key plans for early protection.  According to the 2017 Protection Gap Study by Life Insurance Association (LIA) Singapore, working adults are likely to need critical illness coverage of 3.9x one’s average income¹. The coverage helps support you financially in the event of a CI diagnosis, such as for medical treatment or replacing your income. To gauge, patients in Singapore pay between S$100,000 to S$200,000 for late-stage cancer treatment. It is therefore important for you to be financially protected for such unfortunate episodes to save heavy out-of-pocket costs.

There are many types of plans that you may have heard of, ranging from late-stage only to early-stage plans, riders, or even plans for a specific illness and more.

Before you purchase a CI plan, it is important to understand the available options and the coverage you need. In this article, we discuss the different types of CI insurance.

To start, what exactly does CI insurance do?

CI insurance provides a payout in the event of a CI diagnosis. The payout can help support you and your dependents on the treatment costs and replacement of income.

Type of CI plans

Standalone CI Plans

For standalone CI plans, there are various types of coverage offered. Most of the standard standalone plans cover only late-stage CIs while there are some that also provide coverage for different stages of CI including early stages.

Plans that cover only late-stage CIs

Typically, when you get a CI plan that covers only late-stage CIs, there will only be one full payout of the sum assured when you make a claim. For example, if you are diagnosed with late-stage lung cancer, you would be eligible for the single payout. The plan will then terminate thereafter. With the payout, it’ll help lighten your financial load as you recover.

Such plans may cover a range of late-stage CIs, or just a single CI. Some people may prefer to get protected for just one CI as they are genetically predisposed to that CI due to their family medical history.

An example of a late-stage only CI plan that covers just a single CI is FWD Heart Attack insurance. With the plan, you can get $50,000 of coverage from as low as S$9 a month¹ without any medical examination needed. It is plan that gives you a one-time full payout, enabling you to focus on recovery and taking care of your financial commitments. Find out more about FWD Heart Attack insurance.

Plans that cover both late and early-stage CIs

This type of standalone plans financially protects you if you are diagnosed with any of the covered CIs, including early and late stages. It fills the gap that a late-stage only plan has and allows you to be eligible for a payout without having to wait for your illness to develop into the late stages to make a claim.

For such plans, there is also a single or multi-claim feature attached to them. For single-claim plans, your policy is terminated after you receive the first payout. For multi-claim plans, your policy does not terminate after you receive your first payout. You will continue to be covered and can continue to make future claims. Do note that there are certain terms and conditions for multi-claim plans, and whether there is continued coverage after your first claim also depends.

After a first CI diagnosis, it can be difficult to be insured again due to the pre-existing illness. Hence, individuals may prefer to get a multi-claim CI plan that continues their financial protection beyond their first claim.

With medical advancements and increased chances of recovery with early detection and treatment, getting a CI plan that covers both early and late stages can be an important feature to have for some. The possibility of getting diagnosed with a CI twice in a lifetime is unpredictable and planning ahead and staying financially protected provides assurance for both the insured and their loved ones.

An example of a CI plan that provides both late stage and early-stage CI coverage is FWD Critical Illness Plus insurance. In addition to LIA’s list of 37 late-stage CIs, it also covers you for early and intermediate stages of cancer, heart attack and stroke, the 3 most common illnesses that make up 90% of all CI claims².

For some plans that cover both early and late-stage CIs, they offer a payout of only a percentage of your sum assured upon the first claim for early CI. While for FWD Critical Illness Plus, it provides a 100% payout upon a claim, giving you the financial support and flexibility to spend on medical costs and more. And after your first early cancer, heart attack and stroke benefit claim , your CI protection does not stop there. The plan offers continued coverage even beyond your first claim for late-stage critical illnesses³ and the optional Premium Waiver Benefit allows you to enjoy the coverage after your claim without having to pay your premiums.

If you would like to enhance the plan even more, the optional ICU Benefit provides a 100% payout of your sum assured if you are admitted to the ICU for a duration of at least 5 continuous days with invasive life support due to whatever illness that you have.

Insurance plans with CI riders

Many insurers also offer the option to add a CI rider in addition to other insurance plans. This gives you extra coverage for CIs on top of your main coverage. For example, whole life and term life insurance are some plans that commonly offer the option to add a CI rider.

A plan like FWD Term Life Plus insurance is an example of term life insurance that offers CI coverage as an add-on. You have the freedom to choose the amount of coverage that best suits your needs, at the life stage you are at with fixed or renewable terms. You get to enjoy up to a million-dollar life insurance coverage from as low as S$1 a day⁴, with no medical examination required⁵. Find out more about FWD Term Life Plus insurance.

How can you purchase CI insurance?

Now that you have learned more about the different CI plans, you may be wondering what is the best way to go about purchasing your preferred plan. There are two main ways you can get covered – through a financial adviser representative, or directly through an insurer.

Direct from an insurer

If you are very clear about what you are looking for and the idea of going through an agent seems unnecessary, buying directly from an insurer may be a good option. These days, getting covered yourself can be easy with simple purchase journeys online. FWD Insurance is an example of how getting directly covered online can be quick and easy. Rated Top in Customer Experience among insurers in Singapore⁶, we have made it convenient for you to be covered for life’s uncertainties.

You can simply select your product and get a quote within minutes on the FWD product pages. If you are still unsure, have the choice to save your quote and revisit it when you have made your decision.

Processes such as updating your details or managing your policies can also be easily done on the FWD Portal, and you will be supported by a dedicated representative from FWD. And if you still have questions? You can make an appointment and our customer service team to get in touch with you too.

From a financial adviser representative

If you have a sense of what you want but would still like to get a second opinion and professional advice, you may consider engaging a financial adviser representative. Engaging a professional can help you better understand the plans in the market, answer any queries you may have and guide you through processes such as claims. FWD partners with independent financial advisory partners to provide a personalised customer experience.

Protect yourself and your loved ones today

While it may seem daunting and confusing at first, understanding how each plan works allows you to pick and decide which caters to your needs best. Some factors to consider are:

1. Types of policy – standalone or rider
2. Types of CI coverage – late-stage or both early and late stages
3. Types of payout – one-time or multi-claim
4. Your budget

Getting diagnosed with a CI can take a huge toll on not only the patient but loved ones as well. In the event of a CI diagnosis, being worried about your finances should be the last thing on your mind. A CI plan helps lighten the load on your shoulders and takes care of your financial commitments, allowing you to focus better on what matters most – recovery.

Interested to find out more about FWD Critical Illness insurance plan? Visit the FWD Singapore website and check out FWD exclusive ongoing promotions.