Think of critical illness plans as your athletic shoes: They cover multiple critical illnesses, much like athletic shoes are versatile for running, badminton, gymnastics, and even soccer.
Cancer insurance? Think of them as you think of your football boots. They are better suited for targeted cancer coverage, similar to how football boots provide better turf support, and are ergonomically padded for ball control. However, cancer insurance only covers cancer.
Here’s the rundown of the differences between critical illness and cancer insurance plans:
Why Get a Critical Illness Plan or Cancer Insurance?
Cancer is the leading killer in Singapore, accounting for nearly 30 percent of deaths each year. Colon cancer is the most common type of cancer in men. Breast cancer is most common in women, affecting nearly 30 percent of women.
Here in Singapore, our MediSave, MediShield Life and Integrated Shield plans help cover our medical costs. This includes hospital bills and selected costly outpatient treatments such as dialysis and chemotherapy for cancer.
Medical costs aside, there may be additional costs throughout the course of the cancer, from screening to recovery, some of which are not covered by your health insurance plans. Examples of this are medical supplements, mobility aids, transport costs or loss of income.
Critical illness plans and cancer insurance offer flat-rate payouts that you can use to cover these additional costs.
However, what are the main differences between these two types of insurance plans?
| Critical Illness Plans | Cancer insurance plans | |
| What it covers | 37 critical illnesses, typically in the late stages of the disease | Covers all types of cancer at all stages of cancer |
| What it doesn’t cover (exclusions) | Critical early-stage diseases or early detection of cancer (unless specifically stated in the policy) | Other types of critical illnesses like stroke, kidney failure, liver failure, coma, and more |
| Why get it | To receive a payout if you are diagnosed with a covered critical illness | To receive payment if you are diagnosed with cancer, whether it is early or late-stage diagnosis |
| Available as a driver? | Yes | Yes |
| costs | More expensive compared to cancer insurance. For example, a 30-year-old non-smoking man can get $ 50,000 coverage for around $ 330 per year with Singlife for 40 years. | Very affordable e.g. You can get $ 50,000 in coverage for less than $ 100 in premiums per year. Cancer insurance plans can usually be renewed annually, with your premiums likely to increase year on year as you age. |
Critical Illness Plans: The Athletic Shoes
There are currently 37 critical illnesses as defined by the Life Insurance Association (LIA) in Singapore. To give you a better idea of what Critical Illnesses involve, here are five major Critical Illnesses that make up over 90 percent of all major claims received by life insurers in Singapore:
- Severe cancer
- Heart attack of the specified severity
- Stroke with permanent neurological deficit
- Coronary artery bypass surgery
- End-stage kidney failure
A critical illness plan gives you a lump sum payment if you are diagnosed with a critical illness that is covered by the plan.
This payout can be used to reduce your financial burden, whether it be to cover your medical expenses, mobility aids, nutritional supplements, or almost any other expense you may incur on your way to recovery. It can also help cover your general living expenses or even the potential loss of income or savings.
If you are looking for a plan that covers a wider range of critical illnesses of varying degrees of severity, consider an early critical illness plan. Learn more about the differences between Critical Illness Plans and Early Critical Illness Plans here.
| benefits | disadvantage | |
| Critical Illness Plans | Covers a wide range of 37 diseases, not just cancer. This includes other common illnesses such as heart attacks, strokes, and kidney failure. Very affordable compared to early critical illness plans. | Usually covers the late stage of critical illness. This means that if the disease is detected early, you may not be eligible. More expensive than cancer insurance. |
The LIA recommends that the average working adult have critical illness coverage of approximately $ 316,000, which is roughly 3.9 times the average annual salary of $ 81,663. Here are some of the best critical illness plans in Singapore.
Serious cancers are considered critical illnesses. However, like many other critical diseases on the LIA list, only late-stage cancers are included in critical disease plans. For example, all tumors that are histologically classified as premalignant, non-invasive tumors or with any degree of malignant potential are excluded.
It is common knowledge that early diagnosis and treatment of cancer can lead to better results. If you are looking for cancer insurance at an early stage, this is where cancer insurance plans come in.
ALSO READ: What Happens If You Are Underinsured Against Critical Illness?
Cancer insurance: the football boots
Similar to a critical illness plan, cancer insurance pays the amount insured if you are diagnosed with cancer. The payout from your cancer insurance can also help cover lost wages and medical and non-medical costs.
For early diagnosis, some cancer insurance plans like TIQ Cancer Insurance and FWD Cancer Insurance offer a 100 percent payout. While others like the MSIG CancerCare Plus plan may have a partial benefit payment, the remaining amount is expected to be paid out in the future in case the cancer returns.
Some cancer insurance plans are offered as a driver, e.g. B. The AIA Cancer Relief Income Rider, which offers monthly income after you have been diagnosed with severe cancer. There are also cancer insurance plans designed to cover cancer survivors with recurring cancers such as the AXA Cancer ReCover.
In terms of affordability, cancer insurance plans are far less costly than critical illness plans.
You can get $ 50,000 insured for less than $ 100 in premiums per year. Coverage can also be up to $ 200,000 depending on how much your coverage needs to be. Cancer insurance plans are usually policies that can be renewed annually. Since the premiums ultimately depend on your age and health, it also means that as you age, your premiums are likely to increase from year to year.
| benefits | disadvantage | |
| Cancer insurance plans | Targeted targeted coverage of cancer. Covers all cancers at all stages, from early, middle, to late stages. More affordable than critical illness plans. | Only covers cancer and not other critical diseases (e.g. hearing loss, stroke, kidney failure). |
Here are some of the best cancer insurance plans in Singapore (with great sign up promotions).
The big question: which C word should you get?
Can you play soccer with athletic shoes? Sure you can. But will football boots be a better choice for the sport? Certainly. If you can afford it, you will have both a pair of all-purpose athletic shoes and a pair of soccer-only football boots.
For maximum coverage, you can take out both critical illness and cancer insurance, with cancer insurance offering an additional level of coverage specifically for cancer. You can also double-dip. If you are diagnosed with late-stage cancer, you may receive payouts for both your critical illness and your cancer insurance.
ALSO READ: 7 Cancer Insurance Plans That Have The Best Benefits For You
A determining factor is your financial situation and whether you can afford to take out both types of insurance plans. If you are in need of money it depends on your priorities. Can you save the money on a critical illness plan or would you prefer to protect against cancer at a lower cost first?
One final consideration is your family history. If your family members have had cancer in the past, you may want to get higher cancer insurance. If your family has had other critical illnesses such as stroke, diabetes, or muscular dystrophy, critical illness coverage may be more important.
