Singapore is known for its advanced healthcare system and high-quality medical services. However, one of the challenges faced by residents is the escalating cost of healthcare. The escalating healthcare cost is due to factors such as advanced healthcare infrastructure, increasing demand, specialisation, rising technology and drug costs and a thriving private healthcare sector.
With the escalating medical costs in Singapore, relying solely on a good medical insurance policy may not be sufficient to address the financial burden of healthcare expenses. While medical insurance covers a portion of medical bills, there are often other costs that individuals need to consider. For example, medical insurance typically includes deductible and co-payments which are out-of-pocket expenses, non-covered medical services, post-treatment and rehabilitation expenses, possible loss of income if one is unable to continue to work due to a major illness and the list goes on.
To address these additional expenses, individuals may consider supplemental insurance policies, such as critical illness insurance. Critical illness insurance provides a lump sum payout upon diagnosis of a covered critical illness, which can help cover medical expenses, loss of income, and other financial obligations.
Here are some key points highlighting the importance of Critical Illness Insurance:
Financial Protection: Critical illness insurance provides financial protection by offering a lump sum payout if the insured person is diagnosed with a critical illness covered by the policy. This payout can help cover medical expenses, loss of income, and other financial obligations during the treatment and recovery period.
Rising Healthcare Costs: Singapore has one of the highest healthcare costs in the world. Critical illnesses often require extensive medical treatments, specialised care, and prolonged hospital stays, which can be financially burdensome. Critical illness insurance helps alleviate the financial strain by providing a lump sum amount that can be used to manage medical expenses without depleting personal savings or relying on loans.
Comprehensive Coverage: Critical illness insurance policies in Singapore typically cover a wide range of critical illnesses such as cancer, heart disease, stroke, kidney failure, and major organ transplants. This ensures that individuals are protected against various life-threatening conditions.
Income Replacement: Critical illnesses often result in individuals being unable to work for an extended period, which leads to a loss of income. Critical illness insurance can serve as income replacement by providing a lump sum payout that can be used to cover everyday expenses, mortgage payments, children's education, or other financial obligations when regular income is disrupted.
Peace of Mind: Knowing that you have critical illness insurance coverage can bring peace of mind to individuals and their families. It eliminates the worry of financial instability during a critical illness diagnosis and enables individuals to focus on their recovery without financial stress.
Supplementary to Health Insurance: While health insurance covers medical expenses, critical illness insurance goes beyond by providing a lump sum payout upon diagnosis. It can be used to supplement health insurance coverage and bridge the gap between medical expenses and the additional financial needs arising from a critical illness.
Accessibility and Affordability: Critical illness insurance policies are widely available in Singapore and come in various coverage options to suit different budgets and needs. The affordability of these policies makes them accessible to a broader population, ensuring that individuals from different income groups can protect themselves financially against critical illnesses.
Secure Your Finances with Critical Illness Insurance
The amount of coverage needed for critical illness insurance varies depending on individual circumstances, such as financial obligations, lifestyle, and personal preferences. As a rule of thumb, the amount you need is dependent on your monthly living expenses, experts recommend covering a minimum of 5 years of your monthly living expenses, as this is roughly the amount of time the average person would need to recuperate from a critical illness.
It is recommended to seek professional advice from insurance agents or financial advisors who can assess your specific situation and help determine an appropriate coverage amount for critical illness insurance. They can consider your financial goals, lifestyle, and risk tolerance to provide tailored recommendations for your insurance needs.
Critical illness can strike to anyone and anytime, don’t wait until it is too late. Invest in critical illness insurance and secure your finances today.