How is a critical illness plan a smart investment?

How is a critical illness plan a smart investment?

Having a critical illness plan can serve as a safety net for an unpredictable event of critical illness that one may stumble upon at any point in time. According to an article published by National Cancer Center, Singapore, 74,536 cancer cases were reported between 2014 and 2018. Fortunately, advanced medical facilities are a boon to humanity. In recent times, extraordinary medical facilities had been introduced in Singapore reassuring the fact that despite the rise of critical illness in Singapore, life can bounce back to normal with time. However, the cost of pre and post-treatment can be huge and having an critical illness plan works as a savior at the time of crisis.

 What is a critical illness plan?

Financial worries concerning medical expenses when illness recovery should be the full focus can bog you down especially when responsibilities and commitments are riding on your shoulder. A critical illness plan which covers an extensive list of medical conditions that comes with a lump sum payout to the insured can be a great relief. The lump sum payout can help the insured cope with loss of income due to the critical illness, for example fulfilling financial commitments for the family. So a critical illness plan can help deal with uncertainties with relative ease. It is prudent to have a proper financial planning to keep away from the exorbitant cost associated with medical treatment. Having a critical illness plan can protect an individual from financial burden that might be incurred upon diagnosis of an illness.

 How critical illness plans function A critical illness plan is designed to lessen the financial burden incurred upon detection of a critical illness. However, the payouts are not limited to diagnosis of late stage illness. Most of the critical illnesses plans are generally categorised based on three types of medical conditions: Early-stage medical conditions, intermediate stage medical conditions, and late stage medical conditions. The payouts are decided based on the severity of the medical conditions. For example, 100% payouts are provided upon detection of a critical illness in an advanced stage while a payout of 50% will be made if the diagnosis is at an early stage. Some plans provide

coverage for critical illnesses of all stages. Some plans provide

coverage for early stage illnesses only, while some plans provide late stage critical illness protection and provides customers the option to add on coverage against early and intermediate stages.

 Critical illness coverage as add-ons to other plans Most insurance companies offer critical illness coverage as an add-on supplementary benefit to other life insurance plans, e.g. a whole life plan or investment-linked plans. Some plans even allow premium waiver upon diagnosis of a critical illness.

Having a critical illness plan can be a smart choice in times when health-related issues becomes a financial burden. The above-mentioned benefits are general information applicable to most of the critical illness plan however, a buyer should go through the detailed information of their respective company's plan before making a purchase.

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