For most Singaporeans, medical insurance is their primary protection from sickness. It shields them both financially and medically. A core component of medical insurance is critical illness.
In this article, guest writer Michael Seow gives a clearer understanding of what critical illness coverage provides.
Critical illness insurance, a cornerstone of financial planning in the city-state, offers a lump sum payout upon diagnosis of any stipulated critical illnesses, ensuring that individuals can focus on recovery without the added stress of financial burden. Medical Channel Asia provides you with the ultimate guide to understand the 37 critical illnesses covered by insurance policies in Singapore.
The Essence of Critical Illness Coverage
Before we explore the illnesses covered, it’s crucial to understand the essence of critical illness insurance. Unlike hospitalisation insurance, which covers medical bills, or life insurance, which provides for your dependents upon death, critical illness insurance is designed to ease the financial strain during the recovery period of severe health conditions. It covers illnesses that significantly impact one’s life, often requiring long-term treatment or resulting in the inability to work.
The 37 Critical Illnesses
Singapore’s insurance industry has standardised the list of critical illnesses to ensure clarity and uniformity across policies.
Here’s a closer look at these conditions, categorised for easier understanding.
Cancers and Tumors
- Major Cancer: Any malignant tumor characterized by the uncontrolled growth and spread of malignant cells and the invasion of tissue. It is measured by specific severity criteria. Not all cases qualify.
Heart and Artery Conditions
- Heart Attack of Specified Severity: Death of heart muscle due to obstruction of blood flow, evidenced by clinical symptoms, specific ECG changes, and elevation of cardiac biomarkers. It is measured by specific severity criteria. Not all cases qualify.
- Angioplasty and other Invasive Treatments for the Coronary Artery: The procedure of revascularisation of the coronary artery to improve blood flow to the heart muscle, which may not result in a full claim payout. Not all cases qualify.
- Coronary Artery By-pass Surgery: Surgical grafting of blood vessels to bypass blocked arteries supplying blood to the heart.
- Heart Valve Surgery: The repair or replacement of one or more heart valves due to dysfunction.
- Surgery to Aorta: Surgical procedures on the aorta to repair or remove an aneurysm or sections of the diseased aorta.
Neurological Conditions
- Stroke: An acute event characterized by the sudden onset of neurological dysfunction caused by a blockage or rupture of blood vessels in the brain. Coverage specifies lasting neurological damage.
- Alzheimer’s Disease/Severe Dementia: Progressive and irreversible neurological disorder that results in loss of memory and cognitive function.
- Parkinson’s Disease: A chronic, degenerative neurological disorder that affects movement and coordination.
- Multiple Sclerosis: A chronic autoimmune disease affecting the central nervous system, leading to severe physical and cognitive impairments.
- Muscular Dystrophy: A group of inherited genetic conditions that gradually cause the muscles to weaken, leading to an increasing level of disability.
- Loss of Independent Existence: A condition rendering an individual unable to perform a series of activities of daily living without assistance.
Other Major Organ Conditions
- Kidney Failure: End-stage renal disease requiring dialysis or kidney transplantation for survival.
- Major Organ/Bone Marrow Transplantation: The receipt of a transplant of a heart, lung, liver, pancreas, kidney, or bone marrow due to end-stage organ failure.
- Fulminant Hepatitis: Severe, rapid onset liver inflammation leading to liver failure.
- Primary Pulmonary Hypertension: High blood pressure in the arteries to the lungs, leading to heart failure.
- Terminal Illness: An advanced stage of a disease with no hope of cure and where death is likely within a short period of time.
Sensory Impairments
- Blindness (Loss of Sight): Total and irreversible vision loss.
- Deafness (Loss of Hearing): Total and irreversible loss of hearing measured by audiometric tests.
- Loss of Speech: The total and irreversible loss of the ability to speak caused by injury or disease to the vocal cords.
- Loss of Limbs: The physical loss of use of both hands or both feet or one hand and one foot.
Critical Surgeries
- Major Head Trauma: Injury to the head that leads to permanent neurological deficit with persisting clinical symptoms.
- Brain Surgery: Surgery to the brain under general anesthesia to treat or remove brain tissue.
- Major Burns: Third-degree burns covering at least 20% of the body’s surface area.
Specific Diseases
- Apallic Syndrome: Also known as vegetative state, characterized by severe brain damage and loss of brain function, except for functions that keep the person physically alive.
- Benign Brain Tumour: A non-cancerous tumor in the brain that is typically life-threatening due to its location or size.
- Viral Encephalitis: Inflammation of the brain caused by a viral infection leading to severe neurological impairment.
- Bacterial Meningitis: Inflammation of the protective membranes covering the brain and spinal cord caused by bacterial infection.
- Aplastic Anaemia: A disorder in which the bone marrow fails to produce sufficient numbers of blood cells.
- Medullary Cystic Disease: A kidney disorder causing cysts within the internal structures of the kidney, leading to end-stage renal failure.
- Systemic Lupus Erythematosus with Lupus Nephritis: An autoimmune disease where the immune system attacks its own tissues, causing widespread inflammation and tissue damage, especially in the kidneys.
- Other Serious Coronary Artery Disease: Narrowing or blockage of coronary arteries, not amenable by angioplasty or other non-invasive procedures.
- Progressive Scleroderma: An autoimmune disease characterised by the hardening and tightening of the skin and connective tissues.
- Poliomyelitis: A viral disease that can affect nerves and can lead to partial or full paralysis.
- Motor Neurone Disease: A rare condition that progressively damages the nervous system, leading to muscle weakness, and affecting walking, speaking, swallowing, and breathing.
- Chronic Adrenal Insufficiency (Addison’s Disease): A disorder where the adrenal glands do not produce enough of certain hormones, impacting bodily functions and stress response.
- Chronic Relapsing Pancreatitis: A long-term inflammation of the pancreas that recurs over time and leads to permanent organ damage.
The Impact of Coverage
Including these illnesses in critical illness insurance policies reflects the potential financial and emotional toll they can take on individuals and their families. The lump sum payout can be used at the policyholder’s discretion for treatment costs, daily living expenses, or to offset the loss of income during recovery periods. This flexibility is a key advantage of critical illness coverage, allowing for peace of mind during challenging times.
Navigating the Path Forward
Choosing the right critical illness plan requires careful consideration of several factors, including the scope of coverage, the sum assured, and the policy’s terms and conditions. It is advisable to consult with financial advisors or insurance professionals to understand the nuances of each policy and how it aligns with your health risks and financial goals.
The Evolving Nature of Critical Illness Coverage
As medical science advances, the list of critical illnesses and the criteria for coverage may evolve. Insurers periodically review and update their policies to reflect new understandings of diseases and treatments. Policyholders should stay informed about any policy changes and consider additional coverage if necessary to ensure comprehensive protection against the evolving landscape of critical illnesses.
The Significance of Early Detection and Prevention
While critical illness insurance provides financial support after a diagnosis, catching an illness early can help you in other meaningful ways. Insurance may offer critical illness plans that cover conditions detected at earlier stages. This early detection coverage increases the chances of benefiting from less intensive treatment options and a higher likelihood of a full cure.
Getting screened regularly and monitoring your health means medical professionals have the best opportunity to detect signs of a critical illness in its early, most treatable stages. Detecting illnesses early on greatly improves outcomes and survival rates.
Your health is your greatest asset, so prioritising early detection and prevention is key to enjoying a long life. Maintaining adequate insurance coverage also protects you and your family from financial risks posed by unforeseen illnesses.
