Severe Sickness Insurance: 5 Frequent Misconceptions You Could Have About Severe Sickness And Safety

This post was written in collaboration with Great Eastern. Although we are financially compensated by them, we still strive to maintain our editorial integrity and to evaluate products with the same objectivity. We strive to provide you with the best recommendations and advice so that you can make your personal financial decisions with confidence. You can view our editorial guidelines here.

You probably already know that cancer, a critical disease (CI), is the leading cause of death, too 21,446 deaths in 2019 in Singapore. The leading cancer in men it is colorectal and in women it is the breast. In fact, 1 in 4 or 5 people in Singapore can have cancer at some point in their life.

In addition to serious cancers, heart attacks, strokes, lung problems, and other other critical illnesses are major causes of death. The Life Insurance Association of Singapore (LIA) defines 37 critical diseases as part of 2019.

Critical illnesses pose challenges for both patients and their relatives. According to a recent one Big consumer survey in the east, over 50% of CI patients and their caregivers rely on insurance to manage their financial expenses. Nearly 1 in 3 (30%) of them will have to pay more than S $ 250,000 in medical and hospital expenses during their entire recovery period, with nearly 2 in 5 (40%) having no income for at least 12 months. Over 50% of them believe that they will be hit by CIs more than once.

With regular checkups, CIs can be detected at an early stage while we are still working. Besides, we are live longer with better survival rates due to technological advances in medicine and healthcare.

With this in mind, it is alarming that most Singaporeans do not have adequate CI coverage.

According to the LIA 2017 Protection Gap Study – SingaporeThe average adult's policies cover only a meager 20% of the total cost of CI when we assume a CI recovery time of 5 years, including expenses, outstanding debt payments and lifestyle maintenance.

With the increasing frequency of CIs, it is important to have adequate CI coverage. This is in line with Great Eastern's consumer survey, which found that 73% of those who had previously suffered from a CI are willing to pay higher premiums for more protection against various CIs or recurrences in the future, and over 80% regretted not having got more coverage.

Perhaps it is time to review your CI coverage and assess how well prepared you are if you * touch wood * have been hit by a CI. Let's debunk some misconceptions you may have about your CI protection:

1. You think your coverage is adequate (but is it really?)

What are the real costs of a CI strike? It's difficult to say. Every CI state is different and the recovery process (up to 5 years) and family situation are different. When you're completely single, all you have to worry about is yourself (and maybe your parents). But when you're the only breadwinner supporting a household with young children and the elderly, the stress can be even more off-putting.

Based on the 2017 LIA Protection Gap Study, the average protection requirement for a working adult is S $ 316,603. The average CI protection a Singaporean has is around S $ 60,000, giving a protection gap of 80%. That's 3.1 times the average annual income in Singapore.

Depending on the severity of the CI, the patient may not be able to return to work. This loss of income combined with expenses (mortgages, bills, medical care, children's supplies, groceries, education, etc.) could add to the financial burden on the family. In the worst case, the patient is permanently unable to work and needs continuous treatment with little chance of survival.

One such plan that can help you get your medical expenses covered and your living expenses covered is GREAT life advantage. This lifelong investment-based plan gives you the flexibility to increase your basic insurance coverage to meet your changing needs for eight life milestones, such as your third anniversary, the birth of a child, or starting school, without a medical exam. It also has an optional CI driver that offers up to three 100% payouts for CI.

2. I have MediSave / MediShield / Integrated Shield Plan and that's enough (note: it's not)

We have government programs like MediSave and MediShield, as well as private insurance in the form of Integrated Shield Plans that help cover medical and hospital costs.

However, these only cover one aspect of the CI costs incurred.

What about the other additional costs? Aside from a possible loss of income during recovery, you may also need to spend on a nurse / helper and home improvement (to aid the patient's recovery or adjust their lifestyle changes based on the CI). In addition, there are other costs such as household expenses (ancillary costs, rent, etc.), transport costs (taxi or ambulance for follow-up examinations, emergency room, rehabilitation) and so on.

As a result, the patient may not be able to fully focus on recovery due to financial stress. He might even try to get back to work earlier than recommended.

Hence, it is important to have a comprehensive CI plan like GREAT life advantage and its Complete MultiPay CI Plus Advantage Rider, which offers a flat rate payout to help meet these costs.

3. Many CIs have clear signs and symptoms

Not all CIs have obvious signs and symptoms. Take cancer, for example. Some cancer tumors can form and grow Undetected for 10 years or more before detection. The person may also feel good physically until the cancer is very advanced.

Some types of cancer that are not easily detected in the early stages are testicular cancer, cervical cancer, pancreatic cancer, ovarian cancer, colon cancer, and kidney cancer.

character such as obvious lumps, bleeding, pain, difficulty breathing, and unexplained weight loss can only manifest themselves in the late stages of the disease, when treatment takes longer and full recovery can be difficult.

It's best to get regular health exams to nip any problems in the bud. Although not all insurance plans cover all CI phases (double-check your existing plans!), GREAT life advantage with its Complete MultiPay CI Plus Advantage Rider covers all levels of CIs for maximum protection.

It offers a 100% payout up to three times for each approved CI claim. If you can identify and treat the CI at an early stage without worrying about treatment costs, it leads to higher survival rates, a faster recovery period and an overall better quality of life.

4. The sum insured for my insurance plan and CI driver is high, so I don't have to worry

Have you actually read and understood the terms and conditions of your CI plan and driver? Not all CI plans on the market offer a 100% payout for a claim. Always read the fine print and / or ask your insurance agent.

Sometimes the CI driver payout is divided with the basic insurance amount. An individual may have taken out a S $ 500,000 life insurance policy that offers a CI payout of S $ 300,000. After the full CI payout is made, if the person dies, the family will receive only S $ 200,000 from the life plan payout.

With GREAT Life Advantage and its complete MultiPay CI Plus Advantage Rider, Insured persons receive 100% payments up to 3 times for each approved CI damage. The payment of CI damage does not reduce the basic insurance amount. GREAT Life Advantage also includes benefits in the event of death, total and permanent disability, and terminal illness. It either pays the account value or (after taking into account any ad hoc premium payments and any advance withdrawals) the higher basic insurance amount in the event of death, total and permanent disability or fatal illness.

The Complete MultiPay CI Plus Advantage Rider of the Plan also offers lifetime coverage of up to 300% against 120 critical disease conditions at various stages, including subsequent cancers, subsequent heart attacks, and subsequent strokes. The life insured can always assert claims. This is different from typical CI drivers / plans that are terminated after the initial payout, which can make it difficult for the person to get another CI plan due to existing medical conditions.

5. I just have to buy a CI plan and it will last me for a lifetime

Don't assume that your existing CI plan will give you lifelong insurance coverage. Always review your existing CI plans as the newer plans on the market are constantly being updated as health needs evolve.

Also, some CI protection plans / drivers automatically end after the first CI claim and may not protect you against multiple CI incidents. Can you imagine that when you have a CI and you need financial help, you are actually not insured? You don't have to worry about it GREAT life advantage and its Complete MultiPay CI Plus Advantage Rider that offers you lifespan Cover.

This is how GREAT Life Advantage works with Complete MultiPay CI Plus Advantage Rider:

Source: Great Eastern Insurance

Now that we've unmasked 5 misconceptions about CIs and CI protection, it's time to address CI protection gaps that you may have overlooked.

Find out more about GREAT Life Advantage and Complete MultiPay CI Plus Advantage Rider here.


Terms and conditions apply.

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Protected by SDIC up to the specified limits.

Investments in this plan are subject to investment risks, including the possible loss of the amount of capital invested. The value of the units in the fund (s) and the income accruing to the units may rise or fall. Information on the specific risks of the fund (s) can be found in the information on funds and product highlights. Past performance is not necessarily an indication of future performance.

Small print below the picture

1 Subject to a maximum increase in the basic insurance amount of S $ 100,000 or 50% of the basic insurance amount at the start of insurance, whichever is lower, for each exercise of this option in order to adjust your insurance cover. Different conditions apply. The annual premiums can be adjusted if the basic insurance amount increases.

2 The child protection benefit only covers children in life who are insured up to the age of 18.

* Coverage is provided after 12 months from the diagnosis of critical illness (except for subsequent cancer, subsequent myocardial infarction or subsequent stroke) and after 24 months after diagnosis of the immediately preceding cancer, immediately preceding myocardial infarction or immediately. reset to 100% previous stroke for subsequent cancer, subsequent heart attack or subsequent stroke.

^ The possible payout is based on 50% GreatLink Global Equity Fund and 50% GreatLink Diversified Growth Portfolio with an illustrated return on investment (IIRR) of 8% p.a .. With 4% p.a. IIRR the payout is 100,000 S $. The two returns used (4% p.a. and 8% p.a.) are purely illustrative and do not represent any upper or lower limits for investment performance. The benefits actually payable depend on the actual performance of the underlying assets of the fund. The performance of the funds is not guaranteed and the surrender value may be lower than the total premiums paid.

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