Imagine going to a doctor for a routine check-up. Tests are run, and to your surprise you are diagnosed with breast cancer. The doctor assures you that this is the most common type of cancer affecting women in Singapore and as the cancer is still in stage 1, your chances of recovery are almost 100 per cent.

 

You are relieved and agree to start treatment immediately. But over time, the medical bills start to add up. You are running out of sick leave, and now you have to take unpaid leave to get treatment. As your savings begin to dwindle, you panic and wonder, "How much longer can I keep this up?"

 

This is where early critical illness insurance can help.

An early critical illness insurance provides a financial safeguard for you and your family. It pays out a lump sum of money once you are diagnosed with an early stage illness covered by the policy so you can decide how to spend it — whether to cover treatment costs or to supplement your living expenses. Examples of critical illnesses include cancer and heart disease, which are two leading causes of death in Singapore.

 

The concept is similar to that of critical illness insurance. However, early critical illness plan is more comprehensive and offers the advantage of an early payout so you have more resources for alternative treatment.

 

A typical critical illness insurance policy only provides payouts on 37 critical illnesses on Life Insurance Association (LIA) Singapore industry list. However, these illnesses must have a certain severity level to qualify. For example, a disease is not considered a "Major Cancer" until it is in its late stages, meaning a stage 1 breast cancer patient cannot make a claim.

 

On the other hand, an early critical illness plan generally covers a broader range of conditions including but not limited to heart disease, Parkinson's disease, multiple sclerosis, Alzheimer's disease, and cancer — and at varying levels of severity. The stage 1 breast cancer patient could apply.

 

 

Although there are some exceptions, most critical illness policies lapse once the entire benefit has been paid out. It might also be difficult to get new critical illness insurance.

 

In contrast, many early critical illness plans have the option of multiple payouts. This means that if you received a payout for your cancer diagnosis, you can receive another payout if you have a heart condition later on.

 

Take for example AIA Absolute Critical Cover: Coverage is restored 12 months after your last critical illness, allowing you to make claims up to 500 percent of your coverage amount*. It also provides double your coverage amount if the same illness recurs^.

 

 

This brings us to the third difference: cost. Because of the recurring payouts, premiums are typically higher for early critical insurance plans.

You may wonder: Why is early critical insurance necessary? After all, when one is still young, how likely will critical illness strike?

 

While it is true that the likelihood of critical illness increases with age, young people are not exempted. Studies have found that the number of young people suffering from a stroke has increased in the last decade. Myocarditis, an inflammation of the heart muscle, has been found to affect young, athletic people, and skin cancer is a risk for those who spend a lot of time outdoors in the sun.

 

It is recommended to go for regular check-ups so that diseases can be diagnosed early, and you have a better chance of recovery. Instead of waiting until the disease reaches a more severe stage, you'll want to get treatment right away and claim on insurance.

Although health insurance, such as MediShield Life can help with medical fees, there are limitations to the type of hospital, ward and treatment that you can claim for. Having early critical illness payouts to supplement the cost will give you the advantage of being able to afford more treatment options.

 

In addition, treatment for critical illnesses can also be extremely high. For instance, in the case of cancer, the cost ranges from an average of $1,500 per cycle for a chemotherapy session to $9,000 per dose for immunotherapy. Depending on your health insurance plan and the treatment you need, there may be caps to the amount you can claim, making it useful to have early critical insurance payouts.

 

Finally, health insurance will only be able to alleviate the financial burden of medical costs. There are other costs, such as for transport to the hospital, hiring a helper to care for the children, and loss of income from stopping work, which can add up in the long run. Having an early critical illness plan can help buffer these costs, allowing you to maintain your standard of living and focus entirely on your recovery.

If you're considering an early critical illness plan, here are some questions to ask yourself before you make the commitment.

 

 

While there are varying levels of coverage offered by different critical illness plans in the market, AIA Absolute Critical Cover is one of the most comprehensive you can find. It covers 150 multi-stage critical illnesses, and is the first plan in the market to cover conditions like thyroid disorders and sleep apnoea.

 

 

Advances in health care have made it possible to detect diseases earlier and treat them better, which in turn increases our life expectancy. However, this also means that there is a likelihood of suffering from multiple critical illnesses during one's lifetime, making it important to have multiple payouts.

 

 

According to an LIA study, life expectancy after diagnosis is around four to five years. Ideally, the sum you are assured for should be equivalent to your income, or at least able to cover your cost of living for that period of time. For a better gauge, you can check how much you need using the LIA protection gap calculator.

 

 

Look for other benefits the plan offers, such as waiver of premium in the event of a claim, additional protection for special or juvenile illnesses, or even cash benefits for staying healthy.

 

The term critical illness can sound daunting, but the reality is that more people are diagnosed with it each day. Thanks to medical advances and regular screenings, they can now be detected early, increasing your chances of recovery. Early critical illness insurance can support your recovery by providing you with more treatment options, improving your financial stability, and giving you more peace of mind overall.

 

Until 31 January 2024, sign up for the AIA Live Well** to enjoy six months complimentary coverage for 37 critical illnesses. 

 

Contact our AIA Financial Services Consultants today to learn more about our critical illness plans, and find out which one is best for your lifestyle.