Health Insurance vs Critical Illness Cover: Why need them both!

 

Assuming you are looking for coverage against medical expenses, you will go over two kinds of plans - health insurance (also known as hospitalization insurance) and Critical Illness Cover. This article will quickly go over the difference between these plans and clarify why it is essential to be covered by the two of them consistently.

·         Health insurance

With medical expenses in Singapore on the rise, it is essential that you have satisfactory health insurance. Health insurance takes care of you for hospitalization costs as well as any subsequent outpatient treatments that are deemed essential for recovery.

Each Singaporean Citizen and Permanent Resident enjoys a certain amount of cover under MediShield Life. Given by the Singaporean Central Provident Fund (CPF) Board, MediShield Life is an basic health insurance plan that takes care of medical expenses in Class B2/C wards in government hospitals.

If you wish to get treatment in a Class A/B1 ward or a private hospital, it is advisable to top up your MediShield Life with an Integrated Shield Plan through a private insurance provider.

Integrated shield plans in Singapore offer many advantages to the policyholder. You can browse a wide array of private hospitals to enjoy the best in healthcare that Singapore has to offer. An issue free claims process means you can focus on what matters the most getting better. Certain private health insurance plans even cover emergency medical treatment abroad.

Health insurance plans can likewise be supplemented by numerous beneficial riders presented by the insurance provider. For example, a few riders will help cover upto 95% of all your medical expenses, leaving you with minimal out of pocket expenses.

·         Critical illness cover

Critical illness insurance typically gives a huge payout assuming that you are diagnosed to have a major illness.

Critical illness can manifest suddenly. Statistics show that 1 out of each 4 Singaporeans might develop cancer in their life. Another review has shown that 17 individuals die from cardiovascular diseases everyday in the country. The list continues. The primary concern is - we couldn't say if and when threatening illness can strike, so it is better to have adequate medical cover.

The Life Insurance Association has drawn up a rundown of 37 illnesses that all critical illness plans in Singapore should cover. Private insurance providers often go past this list to offer extra coverage that even protects patients in the beginning phases of critical illness.

Private critical illness insurance plans offer comprehensive coverage for illness, death, partial or total disability emerging from critical illness. This critical illness payout can go towards assisting you with keeping up with your financial responsibilities if you really want a couple of months off work while you get better. In simple terms, you can utilize the critical illness cover to pay for anything including your child's school fees, your home repair costs, domestic help at home, etc.

Leading critical illness plans in Singapore even allow you to begin coverage later at the age of 75 years. You can go anyplace between 100% to 300% of the sum assured depending on the policy. Some insurance companies offer pure cancer insurance plans that offercoverage for cancer and its various stages.

·         Choosing appropriate medical cover

A integrated shield plan gives you genuine peace from medical expenses in case of a critical illness. It can help in covering hospital bills, outpatient treatment and most other medical expenses before and after hospitalization. This will altogether lessen the financial impact of a critical illness.

On other hand, a critical illness plan helps you with covering other financial gap that might introduce themselves while you fight the illness. For example, the payout can be utilized to cover outstanding EMI installments and to support your family’s standard of living despite the loss of your income.

Therefore, if it is within your financial reach, it's a good idea to have both health insurance and critical illness cover. These plans complement one another to give you complete financial security from a critical illness. We hope that the data in this article has been useful. Good Luck!