Critical Illness

Types of Critical Illness Singaporeans Should Know and How to Be Protected

byFelice Dominique Albay
  • Dec 01, 2021
  • 7 mins
  • 2.2K views

In this article

Critical illness can severely impact you and your family financially.

The cost of healthcare in Singapore has been steadily on the rise in recent years. Costs for the treatment of critical illnesses such as breast cancer and prostate cancer — two of the most common cancers in Singapore — have also increased. With 39 Singaporeans being diagnosed with cancer every day, critical illness is definitely something that could happen to any of us at any point in our lives. 

While Singaporeans may have MediSave and MediShield Life to pay for healthcare costs, both are often insufficient to fully address your healthcare needs — especially when it comes to critical illnesses. It is precisely for this reason that you need to invest in ways to financially protect yourself against them. In this article, we’ll show you how.

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Critical illness (CI) is sometimes also referred to as dread disease or terminal illness (for end stage disease), depending on the insurer. These include major cancer, stroke with permanent neurological deficit and heart attack of specified severity. Last year, the Life Insurance Association Singapore (LIA Singapore) released new definitions for critical illnesses, effective from 26 August 2020. Here are the 37 critical illnesses covered under CI insurance as per LIA: 

1.    Major Cancer
2.    Heart Attack of Specified Severity
3.    Stroke with Permanent Neurological Deficit
4.    Coronary Artery By-pass Surgery
5.    End Stage Kidney Failure
6.    Irreversible Aplastic Anaemia
7.    End Stage Lung Disease
8.    End Stage Liver Failure
9.    Coma
10.     Deafness (Irreversible Loss of Hearing)
11.     Open Chest Heart Valve Surgery
12.     Irreversible Loss of Speech
13.     Major Burns
14.     Major Organ / Bone Marrow Transplantation
15.     Multiple Sclerosis
16.     Muscular Dystrophy
17.     Idiopathic Parkinson’s Disease
18.     Open Chest Surgery to Aorta

19.     Alzheimer’s Disease / Severe Dementia
20.     Fulminant Hepatitis
21.     Motor Neurone Disease
22.     Primary Pulmonary Hypertension
23.     HIV Due to Blood Transfusion and Occupationally Acquired HIV
24.     Benign Brain Tumour
25.     Severe Encephalitis
26.     Severe Bacterial Meningitis
27.     Angioplasty & Other Invasive Treatment for Coronary Artery
28.     Blindness (Irreversible Loss of Sight)
29.     Major Head Trauma
30.     Paralysis (Irreversible Loss of Use of Limbs)
31.     Terminal Illness
32.     Progressive Scleroderma
33.     Persistent Vegetative State (Apallic Syndrome)
34.     Systemic Lupus Erythematosus with Lupus Nephritis
35.     Other Serious Coronary Artery Disease
36.     Poliomyelitis
37.     Loss of Independent Existence

What is a critical illness

Key changes in the definitions to keep in mind include:

  • More exclusions for benign brain tumour, coma, stroke, aplastic anemia, heart attack, major cancers, and other diseases
  • Stricter requirements for making claims (e.g. Viral encephalitis and poliomyelitis now all require diagnostic tests.)
  •  “Major Cancers” has been revised to “Major Cancer” and cannot be diagnosed based on the presence of tumour cells and/or tumour-associated molecules in saliva, blood, feces, urine, or any other bodily fluids
  • “Heart Attack of Specified Severity” has been redefined to “Death of heart muscle due to ischaemia”
  • “Stroke” has been revised to “Stroke with Permanent Neurological Deficit”
  • “Kidney Failure” has been revised to “End Stage Kidney Failure”
  • “Parkinson’s Disease” has been revised to “Idiopathic Parkinson’s Disease”
  • “Surgery to Aorta” has been revised to “Open Chest Surgery to Aorta”
  • Those suffering from Haemophilia and Thalassaemia Major can now be covered under the HIV CI condition
  • “Apallic Syndrome” has been revised to “Persistent Vegetative State”
  • “Viral Encephalitis” has been revised to “Severe Encephalitis” and includes all causes of encephalitis, not just viral
  • The word “irreversible” has been added to deafness, blindness, aplastic anaemia, and paralysis. 

These changes essentially make the existing definitions tighter and more specific, which hopefully result in less ambiguity when it comes to making claims. Policyholders with existing critical illness plans bought before 26 August 2020 are not impacted by the new definitions.

If you have CI insurance, you get a lump sum when you are diagnosed with an illness that is covered by the policy, providing you financial support as you take care of your health. However, there are a number of important things to note about CI insurance:

  • Benefits are only paid if the illness meets the definition stated in the policy (thus, the importance of the new definitions provided by LIA)
  • The lump sum does not depend on your medical expenses
  • You may have to wait for certain types of illnesses or surgeries. If you suffered any symptoms of, had investigations for or any illness is diagnosed during the waiting period, your benefits may be forfeited

The goal of insurance is to help shield you and your family from the financial fallout of you not being able to work due to your illness. It also helps cover the extra costs that come with critical illnesses that usually aren’t covered by your existing health insurance. 

Silver protect insurance for critical illness

CI insurance is a little more complex than other types of insurance. As far as coverage is concerned, different insurers may offer varying levels of coverage based on the number of critical illnesses, the type of critical illness, and the stage of critical illness covered. 

One of the best ways to understand what is covered under CI insurance is to look at LIA’s critical illness framework with the latest definitions for the 37 industry-accepted critical illnesses. Do note that not all insurers will cover all 37 critical illnesses. 

One good example of a critical illness plan is Income’s Star Secure Pro, a whole life insurance plan that covers critical illness and much more. With the Advanced Life Accelerator rider, you’re provided with comprehensive coverage against 56 dread diseases1 (also known as critical illnesses). 

One of the best perks of this plan is that, with the Major Impact Benefit2, you’re also covered against future unknown diseases3 as well as if you undergo a surgery or suffer from an infection and you need to stay in an intensive care unit (ICU) for 5 days or more at a go (only valid before the policy anniversary immediately after the insured reaches the age of 85). 

Star Secure Pro also offers a minimum protection value4,5 of up to 500% of your sum assured up to age 75 or 80 for coverage against death, terminal illness, and total and permanent disability.

Furthermore, you can also add on Early Life Accelerator which for extra protection against catastrophic cancer such as leukemia, lymphoma and stage 4 malignant tumour which requires you to undergo cell, tissue and gene therapy6.

Another plan to consider is Cancer Protect which protects against both early and advanced-stage cancers. You will receive 25% of the sum assured7 when you are diagnosed with an early stage cancer8 and up to 125% of the sum assured9 when you are diagnosed with an advanced stage cancer10. You can choose from three different levels of sum assured which will not be reduced even if you make a claim for an early stage cancer8. In the case of accidental death before age 70, the policy will pay out 100% of the sum assured11

For those aged 50 and above, you can also consider Income’s Silver Protect term life insurance. If you are diagnosed with an early stage cancer8, you receive 25% of the sum assured7. If you are diagnosed with an advanced stage cancer10, you receive up to 125% of the sum assured9. Future premiums12 of the policy will also be waived until the end of the policy term for diagnosis of advanced stage cancer10.  If you’re diagnosed with a terminal stage cancer, you can receive up to 15% of the sum assured for hospice and palliative care13

Is critical illness insurance necessary

When you’re young and healthy, insurance for critical illness may seem like the furthest thing from your mind. You may think that you can always rely on MediSave and MediShield Life with an integrated shield plan, right? Well, with critical illnesses, that’s not the case. 

Critical illnesses come with many expenses that go beyond hospital stays and surgery, and beyond what the above mentioned plans can cover which is why they also represent additional insurance premiums.

To make an informed decision, here are some pros and cons to take into consideration:

PROS

  • It pays out a lump sum.
  • The payout is tax-free.
  • Some plans combine it with life insurance protection. 
  • It offers coverage where MediSave and MediShield Life can’t.
  • It is more affordable the younger you are at the point of application.


CONS

  • It can be complex and involve a lot of medical jargon. Policies vary from one another and not all illnesses are covered. Coverage also varies with each policy. You’ll likely require guidance from an advisor.
  • It’s age restricted so the older you are, the higher the premiums.

With healthcare costs in Singapore constantly on the rise, a critical illness is the last thing you want to have to deal with. You will not know when you might be struck with a critical illness. This is why it’s important to familiarise yourself with critical illnesses and protect yourself and your family with a robust CI plan like Star Secure Pro that will help alleviate the financial burdens that come with critical illnesses.

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