5 Critical Facts to Know about Critical Illness
4-minute read
Critical Illness Awareness Month has just ended, but our efforts to deepen our understanding of these illnesses continue. Yet, many Singaporeans still don't take critical illness seriously. A 2022 report by the Life Insurance Association (LIA) of Singapore revealed a staggering 74% critical illness protection gap among economically active individuals aged 20 to 69. Another study from 2023 found that over 68% of Gen Z respondents did not have any critical illness coverage at all!
What is critical illness?
Critical illness refers to serious, life-threatening conditions such as cancer, heart attack, stroke, or kidney failure that can lead to long-term medical treatment, recovery, and significant financial impact. In Singapore, cancer, heart disease and stroke are the top 3 critical illnesses, with Parkinson’s Disease and Alzheimer’s Disease or severe dementia rising in prominence.
If that’s the case, why is there a disregard for protection against such illnesses in Singapore? For the young, it's just not seen as a priority, especially for those who live healthy lifestyles with no family history of illness. Young adults would rather use their limited funds for immediate financial needs like food, travel, and housing.
These assumptions stem from misconceptions of the risks of critical illness and the financial costs of treating them. Here are 5 critical facts to debunk those myths and emphasise why getting comprehensive coverage early is so important:
1. Critical illness insurance is unique from other health insurance
Many people overlook critical insurance, assuming they're already covered by other health plans. However, different types of health insurance serve different purposes and can work together for comprehensive protection against various health risks.
Critical illness insurance provides a lump sum payout when diagnosed with one of these illnesses to help cover medical costs, income loss, or other financial needs during recovery. Cancer insurance focuses solely on cancer-related payouts. Hospital insurance is specific to hospital-related costs. Personal accident insurance only covers injuries from accidents.
Relying solely on company insurance for critical illness can be risky too. Coverage is often limited, and you may lose it if you change jobs or are unable to work due to illness, leaving you financially vulnerable at a critical time.
2. 49.68% of life insurance claims are for critical illness
For those who think they’ll never have to touch their critical illness plans, don’t be so sure. According to a 2024 study done by Smart Wealth, critical illnesses make up nearly half of all life insurance claims (49.68%), showing that these conditions are more common than most people think. What’s more, a significant number of claims are being made by people as young as 41!
3. Treating a critical illness can cost up to $200,000 a year
Dealing with a critical illness can really hit you hard financially, especially with rising costs due to inflation. Smart Wealth reports that the average critical illness claim is around $52,500, with treatment expenses for conditions like cancer possibly climbing to $200,000 a year.
4. 1 in 4 Singaporeans may develop cancer in their lifetime
Cancer is the leading cause of death in Singapore, and the numbers are staggering. 1 in 4 Singaporeans is expected to develop cancer in their lifetime, based on the Singapore Cancer Registry Annual Report in 2021. In Singapore, an average of 46 people were diagnosed with cancer daily from 2017 to 2021. Moreover, some cancers, such as ovarian cancer and pancreatic cancer, remain invisible, showing no symptoms or signs during screenings until it’s too late.
5. More young people are being diagnosed with critical illness
As unhealthy diets, stress, and sedentary lifestyles become more common, younger adults face higher risks. In fact, from 2010 to 2019, the incidence of stroke among individuals aged 15 to 29 increased from 3.8% to 5.7%. In addition, almost 5% of all diagnosed cancer cases are among those below age 30. Even dementia patients are getting younger, with 100 individuals as young as 40 diagnosed with young-onset dementia in Singapore every year.
Take charge of your health with MSIG CriticalCare Plus
These facts are a wake-up call for anyone who thinks they don’t need critical illness insurance because they are young or healthy. Critical illness can strike at any age. To avoid the pitfalls of being underinsured, protect yourself with extensive critical illness coverage.
As we want to financially support more individuals from critical illness and close this protection gap, MSIG has rolled out its latest critical illness plan, CriticalCare Plus. The plan offers a payout of up to $100,000 for major illnesses, including 5 major illnesses. Should you discover cancer in its early stage, you will receive 50% of the total payout to help you start treatment sooner. Additionally, heart patients can receive a 10% payout for invasive coronary artery disease treatments.
To ensure there are no gaps in your healthcare protection, MSIG also offers comprehensive plans for hospitalisation, personal accident, and cancer.
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