Do You Need Critical Illness Insurance?

If you are wondering, do you need critical illness insurance? We have the right answer for you. In the event of an acute health emergency, what helps the most is financial support. Treatment of life-threatening diseases like heart attack, cardiac arrest, and cancer can empty your pocket. In the case, the only thing that can save you from cash crunch is insurance.

The standard health insurance does not provide coverage for the deadly disease you can insure it with critical illness disease. This policy is because the treatment cost of treating deadly disease is usually more. If you want to save yourself and your family from financial ruin, then it is something you cannot ignore. Some points can clear your thoughts even more:

  • It provides extra coverage for health emergencies like liver failure, major organ transplant, kidney failure and another type of disease.
  • The payouts provided by this insurance policy are higher as compare to other types of insurance.
  • You can take the policy according to your budget. If you want to take the low budget policy, it will provide you with limited coverage if you don’t have any money constraint you can carry more comprehensive coverage option.

Who requires it?

Critical illness policy is enormously beneficial for those who are precautious and wants to secure their future as much as possible. Most people do not want to take any chance relating to health, especially if the disease runs in their family.

Furthermore, if you are the sole breadwinner of the family, you do not want to take a chance. There is a continuous thought if you are not working who will take care of your family. The saving you have accumulated from years will all be used up in the process. In such a case, you will need the assistance of critical insurance policy. The policy is even more essential in the point where you do not have much savings, and you also do not have an employee benefits package that supports you when you fall sick.

You can easily apply for the policy if you are between the ranges of 18 to 45 years. At this age, you can get the policy quickly because at this age, sit’s least probable to suffer from any critical disease. But if you have passed 45 years you will have to go through some requires pre-policy checkups for the policy to get approved. After you pass the medical exam, you can get the procedure. So it is always advisable to take the policy as soon as possible.

In the critical illness policy, you also get the advantage of including your direct family member in a single plan. Parents, siblings, spouse and children come under direct family relation. If you apply coverage for more than one person, you can get coverage for the entire family.

Advantages of a critical illness insurance plan

Following are some advantages you get when you are the holder of a critical illness insurance plan:

  • Tax deduction advantage, as mentioned under Section 80(D) of the Income Tax Act, 1961.
  • Hassle-free option for payouts.
  • Easy process while applying a claim with less document requirement.
  • Extra rider option available.
  • Various option for sum assured premium and policy tenure.
  • The lump-sum received by the company can be used wherever you want.
  • Pre-hospitalization expense is also covered for up to thirty days.

Why is critical illness insurance important?

Most people ask their employer to purchase critical illness disease on their behalf. The employer also offers it as a voluntary advantage to their worker. The employers are keen to offer it because they do not have to pay for the plan the workers are the one who bears the total cost of insurance premium. It is not like other insurance policy where the employer has to pay the amount. Whereas employee opts for it because they find it very hectic to maintain the policy plan and they do not want to pay it out of their pocket.

Critical illness insurance is useful under many conditions, like:

  • Provides daily living expense to your family so you can be assured and focus on the healing part.
  • Supports in critical medical service which are hard to find.
  • Assist for diseases not covered under a standard policy.
  • Provides lump sum that can be used in vacation for those who need a change of environment for recovery.
  • Transportation cost because of the treatment process. The price for doctor’s visit, buying a wheelchair or installing lifts for those who are unable to walk or climb the stairs.

If we put it in simple words, the advantage of getting a critical illness insurance plan is to remove all your financial worry. The worry is because you are too sick to go to work or your savings are now falling short. The hospital bills are now the primary cause of bankruptcy in Singapore, so protection against it is very vital.

How the CI insurance plan works

The working of critical illness insurance is not the same as mediclaim. On the diagnosis of acute disease, the insurance company pays a lump sum amount which is equal to the sum assured. This lump sum is given directly to you or your loved ones whoever claims for it. The lump-sum you get from the insurance company you can use it for whatever reason you want. You can pay it for travelling expense, lodging, vacation, etc. The claim amount you get does not depend on the hospital charges you get the full amount assured.

So it is the most secured plan as the payout is fixed and definite. It does not invite problem even if you have various CI covers you will get the reimbursement of every policy you assured.


From the above points, it is clear that a critical illness insurance plan can provide many benefits, and it is essential for all. It covers a wide range of diseases and prepares you for the future. If you want to be thoroughly equipped for other types of insurance too, you can look for maid insurance and security bond policy which is mandatory in Singapore by MOM. This policy secures you against loss relating to the maid.

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