Critical Illness Insurance in Singapore: Your Essential Guide for 2024

Critical Illness (CI) insurance is a vital component of financial planning in Singapore, offering a safety net against the financial impact of severe health conditions. In a country where medical costs are steadily rising and the risk of critical illnesses is increasing, CI insurance provides crucial financial support when it's needed most. This type of coverage is particularly important in Singapore's context, where a health crisis can significantly impact one's ability to work and maintain financial stability in a high-cost living environment.

How Critical Illness Insurance Works in Singapore

Critical Illness insurance in Singapore operates on a straightforward principle. Policyholders pay regular premiums in exchange for a lump sum payout if they are diagnosed with any of the covered critical illnesses specified in the policy. These typically include major conditions such as cancer, heart attack, and stroke, among others.
The payout is made upon diagnosis and survival of a short waiting period, usually 7 to 30 days. This sum is intended to help cover medical expenses, replace lost income, or maintain lifestyle needs during recovery. Unlike health insurance, which pays the hospital or healthcare provider directly, CI insurance pays the benefit directly to the policyholder, offering flexibility in how the funds are used.

Benefits of Critical Illness Insurance in Singapore

• Financial Protection: Provides a lump sum to cover medical costs and living expenses during treatment and recovery.
• Income Replacement: Offers financial support if unable to work due to illness.
• Flexibility in Use of Funds: Payout can be used for any purpose, including experimental treatments or overseas care.
• Complement to MediShield Life: Covers gaps in basic health insurance coverage.
• Peace of Mind: Reduces financial stress during a health crisis.
• Early Stage Coverage: Some plans offer payouts for early-stage critical illnesses.
• Multiple Claims: Certain policies allow claims for multiple critical illnesses.
• No Impact on Savings: Prevents depletion of personal savings or retirement funds.
• Tax-Free Benefits: Payouts are generally not taxable in Singapore.
• Affordable Premiums: Compared to whole life CI plans, term CI insurance offers lower premiums.

12 Best Critical Illness Insurance Policies in Singapore 2024

Following is a list of the 12 best critical illness insurance in Singapore 2024 offered by top critical illness life insurance companies.

• GREAT Critical Cover

  • 100% payout for every covered critical illness claim
  • Coverage for 53 critical illnesses at all stages
  • Premiums do not increase with age

• Singlife MyMultiPay

  • Coverage for 132 conditions across all stages
  • Multiple payouts up to 900% of sum assured
  • Premiums waived after 300% sum assured payout

• PRUActive Protect

  • Coverage up to age 100
  • Multiple claims up to 500% of sum assured
  • Complimentary child cover benefit

• FWD Critical Illness Plus

  • Comprehensive coverage for late-stage critical illnesses
  • Future Protect Benefit for undiscovered illnesses
  • Auto-reload Benefit resetting sum assured after first claim

• Singlife Multipay Critical Illness

  • Coverage for 132 conditions across all stages
  • Claims up to 900% of sum assured
  • Additional benefits for special conditions and ICU stays

• Singlife Cancer Cover Plus

  • Up to S$1.5 million annual coverage for cancer treatment
  • Coverage for local and overseas treatments
  • Covers advanced therapies and outpatient drug treatments

• Great Cancer Guard

  • 100% payout for all cancer stages
  • Affordable premiums that don't increase with age
  • Guaranteed renewal until age 85

• FWD Big 3 Critical Illness

  • Coverage for all stages of cancer, heart attack, and stroke
  • Guaranteed renewal up to age 85
  • No medical examination required

• HSBC Life Super CritiCare

  • Multiple claims up to 600% sum assured
  • Coverage for re-diagnosed cancer and recurrent heart attack/stroke
  • Complimentary Diabetes Care Programme

• PRULady

  • Comprehensive coverage for female-specific conditions
  • Preventive health screening every 2 years
  • 36-month premium waiver upon female illnesses claim

• AIA Absolute Critical Cover

  • Coverage for 187 critical illnesses
  • Cash value accumulation up to age 100
  • Claims up to 500% of sum assured

• AIA Power Critical Cover

  • Coverage for 175 conditions including pre-early stages
  • Power Reset Benefit for multiple claims up to 500%
  • Power Relapse Benefit for recurrence of same critical illness

How to Choose the Best Critical Illness Insurance Plan in Singapore

• Assess Coverage Needs: Consider your financial obligations and lifestyle costs.
• Number of Conditions Covered: Look for plans covering a wide range of critical illnesses.
• Coverage Amount: Ensure the sum assured is sufficient for your needs.
• Premium Affordability: Balance coverage with your budget for long-term sustainability.
• Policy Term: Choose a term that covers your most vulnerable years.
• Early Stage Coverage: Consider plans that cover early-stage diagnoses.
• Multiple Claim Feature: Look for policies allowing claims for different critical illnesses.
• Waiting Period: Check the survival period required before payout.
• Exclusions: Understand what conditions or circumstances are not covered.
• Insurer's Reputation: Research the company's claim settlement ratio and financial strength.

Types of Critical Illness Insurance Available in Singapore

• Term Critical Illness Insurance: Provides coverage for a specific period at lower premiums.
• Whole Life Critical Illness Insurance: Offers lifelong protection with a savings component.
• Early Stage Critical Illness Plans: Cover illnesses at earlier, more treatable stages.
• Multi-Pay Critical Illness Plans: Allow multiple claims for different critical illnesses.
• Gender-Specific Critical Illness Plans: Tailored coverage for male or female-specific conditions.
• Standalone Critical Illness Policies: Dedicated CI coverage without life insurance component.
• Riders to Life Insurance Policies: Add-on CI coverage to existing life insurance plans.

Critical Illness Insurance for Different Life Stages in Singapore