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Understanding critical illness insurance​
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Critical illness insurance pays a lump sum if you're diagnosed with a critical illness or after having undergone a type of surgery covered by the policy. Find out how it works and whether it is something you need.

Key takeaways
  • Types of critical illnesses covered may vary from one insurer to another.
  • Payout is a one-time lump sum and the policy ends when it's paid out.
  • Lump sum amount does not depend on your medical expenses.

What is critical illness insurance?

Critical illness insurance pays you a lump sum of money if you're ever diagnosed with a critical illness covered by the policy. These include:

  • Major cancers
  • Heart attack
  • Kidney failure
  • Stroke

The Life Insurance Association Singapore (LIA) has standard definitions for 37 severe-stage critical Illnesses. However, critical illness plans offered by the various insurers may vary in the number and type of critical illnesses covered.

Speak to an insurer if you want to be covered beyond this list.

Key features

  • Pays a lump sum if you are diagnosed with an illness covered by the policy. Or after first having a type of surgery covered by the policy.
  • Benefits are paid only if the illness or surgery meets the definition stated in the policy.
  • There is usually a waiting period for specific illnesses or types of surgery. If any illness is diagnosed or a type of surgery is carried out during the waiting period, no benefits will be paid.
  • Some critical illness policies pay a smaller amount for earlier stages of cancer, or make several payments upon diagnosis of different insured critical illnesses, subject to the sum insured or policy limits.

Last updated on 02 Nov 2018