Understanding critical illness insurance
A cancer diagnosis costs far more than treatment alone. Learn how critical illness insurance pays a lump sum when you need it most—and what conditions are actually covered.
Last updated 2 July 2026
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
Critical illness insurance pays you a one-time lump sum of money if you are 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 of critical illness insurance
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.
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