Critical Illnesses (CI) are getting increasingly more prevalent in Singapore due to our ageing population. Under the standard definition, there are 37 CIs, of which includes major cancers, stroke, and kidney failure.
With a rise in the number of people having CI, it is expected that lots of Singaporeans might have a comprehensive knowledge of CI insurance coverage. However, according to recent findings from the AIA Health Matters Survey 2020 conducted by Nielsen, it seems that knowledge on CI isn't as extensive as one would expect.
Here are four major misconceptions that many Singaporeans have.
1. Critical illness insurance will pay for multiple critical illness claims as long as the quantity is kept inside the sum assured.
A staggering 71% from the 300 Singaporeans surveyed believe that this is true. CI insurance only provides a payout for just one critical illness claim, regardless of how reduced it is than the sum assured. For those who have two different critical illnesses simultaneously, you will simply have the ability to claim for one of these.
Suppose you suffer from initial phase cancer and diabetes, and both critical illnesses individually allow you to claim 50% of the payout each. Even though they equal to 100%, you will simply be able to claim 50% of the payout.
2. Those who work in remission from the critical illness are able to find a new critical illness insurance when there is no relapse after a certain period of time.
Half from the surveyed group got this wrong. It is not true that adhere to what they take up a new critical illness insurance after suffering from the critical illness. Insurance firms are unlikely to cover you since the likelihood of relapse are greater.
3. Critical illness insurance pays a lump sum cash benefit when you are diagnosed with a vital illness together with monthly payouts to supplement medical expenses.
61% thought this was correct, despite the fact that insurance coverage will certainly not provide monthly pay-outs to supplement medical expenses. Regardless of how much your medicine or hospital visits cost, you will simply obtain a lump sum that is intended for all related expenses.
Also, depending on which kind of critical illness insurance plan you purchased, getting diagnosed with an early stage CI may not guarantee a payout. It is because many CI plans only cover major stages of CI, so check the policy properly before committing to a CI plan.
4. Critical illness insurance reimburses your medical expenses such as the hospital bills and post-surgery treatments.
Only 34% of the group knew that this statement is not true. CI insurance doesn't consider how your medical bills are, and won't reimburse your medical expenses dollar for dollar. As with that which was said above, in case your hospital bills and post-surgery treatments exceed the assured sum, you'll have to spend the excess yourself.
To be reimbursed specifically for hospital bills and post-surgery treatments, you must have hospital cash insurance and medical expense insurance plans.
A great idea to check out is the AIA Triple Critical Cover, which provides comprehensive CI coverage and a 'Power Reset' feature which restores your coverage amount to 100% Twelve months carrying out a claim. You can even get up to 300% of the coverage amount for various CIs, and across all stages of the CIs.
It is essential to think about getting critical illness insurance because if you're down with something, you will be not able to work with an extended period of time and will have to rely on your savings or insurance payout to tide you over a few months. It will likely be financially taxing not only for you personally, but also for your family.
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