Are Critical Illness Policies Right For You?

If you are thinking, do I need critical illness insurance? Then the simple answer to it is, it’s essential for everyone. An unhealthy lifestyle with no particular timeline of eating, sleeping, and having an unhealthy diet mixed with a degrading environment can cause many deadly diseases. The pollution in the air can cause various lung infection and heart diseases. Today the occurrence of critical illness is very prevalent. Almost every individual in the crowd is suffering from some of the other conditions. Therefore, it becomes vital to secure your life from a critical insurance policy that will help you get the best treatment with high chances of recovery.

Critical illness insurance provides you a lump sum amount in the time of severe health diagnosis; the health issue can be a heart attack, cancer or stroke, or any other disease. You have to pay an amount of 25-50 dollars per month as a premium, and in exchange, the insurance company provides you compensation. The payout can be 10,000 to 25000 dollars depending on the clause of the policy and coverage.

How is the premium set?

Depending on which type and how many diseases you are covering, the company will set the premium amount. Suppose you are only taking coverage for cancer, and some other person is taking coverage for a couple of diseases like liver failure, organ transplant, and cancer. In both cases, there is a huge coverage gap, so the premium amount will also differ. Today many companies are even offering protection against Covid-19. But for pre-existing diseases, you cannot claim for a payout as soon as you get the policy registered; you have to give a time of 3 months.

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The requirement of a critical illness insurance policy

Below here we have mentioned some of the reason why you should take critical illness insurance:

  • Medical cost: The health care cost is increasing at a steady rate in Singapore. The research says that it is probable for the price to get double in the future. The medical expense can be immense financial pressure on your family significantly. You have the pressure of both suffering from the disease and paying for the treatment. Critical illness insurance helps you release all the tension relating to finance, and you can concentrate more on recovery.
  • Critical illness at a later age: It is most probable to get a crucial condition in your old age. These acute diseases, like kidney issues, heart attack, liver failure, cancer, etc., are prevalent. The doctor says that almost all people in their old age suffer from these diseases because of lack of exercise, unhealthy food choices, and low lifestyle. They can even be the result of a hereditary issue or age-related problem. If you suffer from these diseases, it can be life-threatening, and regular health insurance won’t help you with such matters.

To confirm the recovery, you need to get the best treatment possible, which is only possible with a critical illness insurance plan. The insurer, along with treatment costs, also covers miscellaneous expenses.

  • A quick decision is possible: When you are suffering from the acute disease, it is essential to make a quick decision. When science has advanced so much, it is possible to cure even cancer. If you take a quick decision relating to these diseases, you can heal them quickly and in a short period. Also, with critical illness insurance, you are not worried about handling the expensive medical bills to make your decision without thinking much.
  • International treatment: It is uncertain that you will get healed in the same city if you get a critical disease. You might have to travel out of the country to treat the condition. The necessary illness policy will assist you across the globe. You will get reimbursement even if you have the treatment internationally. You have to make sure you have a proper treatment document with the physicians’ reaffirmation, and the paper should be in English.
  • Tax benefits: You can also save your tax by taking critical illness insurance. You can lessen the premium of the policy you pay to the company from the year’s total income tax. Also, the payout you get from the insurance company is tax-free. But once you have been suffering from an acute disease, you cannot opt for critical illness. Even if you do, it will not be approved. So take the precaution as soon as possible when you are still healthy.
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Points to ensure in your policy

The points mentioned below should be in your insurance policy. It will help you add additional clearance in your decision regarding do I need critical illness insurance.

  • Always take note of the type of disease covered under your policy. The different insurer offers different coverage policy. Some offer a wide variety of coverage, whereas some provide a limited range.
  • Before taking a policy, check your family medical history to clear which acute disease you want to cover.
  • Go through the form carefully. Read the section highlighted in the document and check the criterion of age-most of the companies cap the period up to 65 years.
  • Check the renewal policy of the company. Check the proper definition of family in the document, the exclusion, renewal premium, personal floater policy, and other essential details.


The importance of getting a critical illness policy for every family member is increasing day by day. Not only in the future when we will be exposed to diseases at an older age, but because of the lifestyle, many young people also suffer from acute illnesses. Therefore, choose a policy that can support you in every phase and plan it as soon as possible.

It works great with standard health insurance policies to benefit from both casual and acute injuries. If you want to know more about insurance, then there is also mandatory insurance in Raja Ampat which many people don’t know, namely auxiliary insurance. You can check which maid insurance is good to learn more about it.

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