Critical illness insurance plans provide coverage for all critical illnesses listed under the plan. There are a total of 37 medical conditions that can be insured under any critical illness policy, according to Life Insurance Association Singapore. Some policies cover more illnesses on top of that list.
Out of these 37, cancer, strokes, and heart attacks are the most common illnesses in Singapore. These three illnesses account for 90% of critical illness claims.
Why Critical Illness Insurance Is Important
Many Singaporeans think that critical illness insurance is unnecessary if they already have basic life insurance policies. That is not true.
If you contract a critical illness such as cancer, you only receive the life policy’s payout if you die or become permanently disabled. With critical illness insurance, you are given a fixed sum as long as you are diagnosed with a critical illness covered under the plan.
You can get a critical illness rider along with your life insurance to receive the fixed sum upon diagnosis.
Hospitalisation insurance is also not a substitute for critical insurance coverage. Hospitalisation insurance policies only cover your medical bills. Critical illness policies provide a lump sum upon diagnosis of any of the listed illnesses.
The sum of money is crucial if you need to stop working or require long-term treatment.
Considerations
Depending on your income, expenses, savings, and number of dependents, everyone’s insurance needs will differ. Use our insurance calculator to check how much critical insurance coverage you need.
Then ask yourself what is the level of coverage you want your. While there are 37 and more listed critical illnesses, different plans cover different illnesses. Depending on your needs, you might only want to be insured against the top three critical illnesses: Cancer, stroke, and heart attack.
Let’s look at three critical illness insurance plans and see how they compare against one another.
Tiq’s 3 Plus Critical Illness
Tiq’s 3 Plus Critical Illness insurance is a protection term insurance that provides coverage for all stages of cancer, major heart attacks, and major strokes.
| Details | |
| What it Covers | – Cancer (Early to advanced stages) – Stroke with Permanent Neurological Deficit – Heart Attack of Specified Severity |
| Eligibility | – Singaporean citizen or permanent resident with a valid NRIC or a foreigner holding a valid Work pass/Permit or Long-term Visit pass – Between 17-70 years old (yearly renewable up to age 85) – Residing in Singapore |
| Cover Amount | S$30,000-S$300,000 |
| Premiums | Depends on your cover amount and age Payment: Monthly, quarterly, semi-annually, annually |
| Death Benefit | S$20,000 |
| Riders? | (Optional) Heart and Neurological Disorder Rider |
By logging in with Singpass and filling up a simple health declaration survey, you can register for the policy within a few clicks.
If I am a 34-year-old woman who does not smoke, and hopes to have the maximum cover amount of S$300,000, my premiums will increase every year based on my age like this:
Tiq also provides complimentary cover for children and provides death benefits of S$20,000 per child for up to four children.
The plan also offers special conditions coverage including a 20% payout against Diabetic Complications or Severe Rheumatoid Arthritis (SRA).
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FWD Big 3 Critical Illness Insurance Coverage
Similar to Tiq, FWD also offers the Big 3 Critical Illness Insurance Coverage to cover cancer, heart attack, and stroke.
| Details | |
| What it Covers | – Cancer (Early to advanced stages) – Major Stage Stroke – Major Stage Heart Attack |
| Eligibility | – Singaporean citizen or permanent resident with a valid NRIC or FIN – Between 17-65 years old (yearly renewable up to age 85) – No existing FWD Cancer Insurance |
| Cover Amount | S$50,000-S$200,000 |
| Premiums | Depends on your cover amount and age Payment: Monthly, annually |
| Death Benefit | S$20,000 |
| Riders? | (Optional) Heart and Neurological Disorder Rider |
If I am a 34-year-old woman who does not smoke, and hopes to have the maximum cover amount of S$200,000, my premiums will increase every year based on my age like this:
Compared to Tiq’s 3 Plus Critical Illness, while the maximum cover amount is S$100,000 lower, the premiums are also half the amount. For example, over 20 years, I would pay a cumulative sum of S$18,790 with FWD and S$39,480 with Tiq.
Other than that, both plans are very similar in their coverage and payment terms. Deciding between the two boils down to the amount of coverage you want and your budget.
HSBC Term Protector
HSBC’s Term Protector with the Early Critical Illness rider is pretty different from Tiq’s and FWD’s.
| Details | |
| What it Covers | Early to advanced stage critical illnesses |
| Eligibility | – Singaporean citizen or permanent resident with a valid NRIC or FIN – Between 1 month-70 years old (yearly renewable up to age 99) |
| Total Benefits | S$100,000-S$2,000,000 |
| Premiums | Depends on your cover amount and age Payment: Monthly, quarterly, semi-annually, annually |
| Death Benefit | According to chosen sum |
| Riders | Early Critical Illness Payout Advance Critical Illness Payout Advance Total and Permanent Disability Payout Disability Cash Benefit Critical Illness Plus Benefit Personal Accident Benefit Guaranteed Survival Payout |
If I am 34 years old this year, I will pay fixed premiums of S$1,748 every year. This totals S$34,966 in 20 years. However, compared to Tiq’s, I will have to pay almost double the price in my first year, but eventually pay lesser premiums towards the end of the payment plan.
Comparison
When you buy critical illness insurance, you should look at long-term costs because you never know when unexpected illnesses can hit. A fixed premiums structure would be less costly if you want a long-term insurance plan. Let’s look at the pros and cons of each policy:
| Details | |||
| Insurance Plan |  3 Plus Critical Illness |  Big 3 Critical Illness Insurance Coverage |  Term Protector with Early Critical Illness Payout |
| Pros | – Complementary cover for up to four children – Able to cancel anytime after two months – Can buy from website directly | – Affordable premiums – Can buy from website directly | – Level premiums – Covers more than 37 critical illnesses – High death benefit of S$300,000 |
| Cons | – Stepped premiums – Only covers three critical illnesses | – Stepped premiums – Only covers three critical illnesses | – Minimum 5 years plan |
Standalone Cancer Insurance
Among the three main critical illnesses, cancer is the most common — almost 39 Singaporeans are diagnosed with cancer every day, and it is the leading cause of death.
Some people may only want insurance against cancer based on their budget and preference. Some insurance providers offer standalone cancer insurance which provides a payout in the event of a cancer diagnosis.
Get Protected Today
Critical illness insurance is vital if you have dependents such as young children and old parents.
A good critical illness plan allows you to seek treatment and recover without worrying about your loved ones’ financial needs. If you are unsure which plan best suits you, or you would like a customised quote, leave your request via this form and we will find you the options that suits you best.
