{"id":4323,"date":"2025-01-07T16:25:34","date_gmt":"2025-01-07T08:25:34","guid":{"rendered":"https:\/\/www.pacificprime.sg\/blog\/?p=4323"},"modified":"2025-01-07T16:25:34","modified_gmt":"2025-01-07T08:25:34","slug":"critical-illness-insurance-what-is-it-who-needs-it","status":"publish","type":"post","link":"https:\/\/www.pacificprime.sg\/blog\/critical-illness-insurance-what-is-it-who-needs-it\/","title":{"rendered":"Critical Illness Insurance: What is it and Who Needs It?"},"content":{"rendered":"<p>Critical illness insurance pays a lump sum of money to policyholders once they are diagnosed with a major illness covered by the policy. There is no restriction to how this paid-out money can be used, making this insurance highly attractive as extra funds for treatment or supplementing income.<\/p>\n<p>However, just like many things about insurance, there are certain factors you should consider when purchasing your critical illness insurance. Read on to learn more or <a href=\"https:\/\/www.pacificprime.sg\/contact-us\/\">contact our insurance experts now<\/a> for advice and quotes tailored just for you.<\/p>\n<div class='code-block code-block-5' style='margin: 8px 0; clear: both;'>\n<p><a href=\"https:\/\/www.pacificprime.sg\/compare-quotes\/step-one\/?campSource=PPSG-Blog&utm_source=blog&utm_medium=cta_banner&utm_campaign=banner&utm_content=quote?campSource=PPSG-Blog&utm_source=blog&utm_medium=content_banner&utm_campaign=banner&utm_content=general\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-778\" src=\"https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2024\/07\/Blog-Banner_Singapore_1.jpg\" width=\"1138\" height=\"493\" \/><\/a><\/p><\/div>\n\n<h2>What Is Critical Illness Insurance<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4326\" src=\"https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_What-it-is.webp\" alt=\"Critical-Illness-Insurance_Singapore_What-it-is\" width=\"1140\" height=\"495\" srcset=\"https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_What-it-is.webp 1140w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_What-it-is-300x130.webp 300w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_What-it-is-1024x445.webp 1024w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_What-it-is-768x333.webp 768w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_What-it-is-1138x493.webp 1138w\" sizes=\"auto, (max-width: 1140px) 100vw, 1140px\" \/><\/p>\n<p>Critical illness insurance pays you a lump sum of money once you are diagnosed with a critical illness covered by the policy. Your policy is then closed after you receive your payout. You can use your money for any purpose you want, whether relating to your illness or not.<\/p>\n<p>Many take out critical illness insurance as a supplement to a medical or hospitalization policy.<\/p>\n<p>For medical or hospitalization policy, your insurer generally reimburses costs incurred during your treatment or your stay in the hospital only, and some additional costs might be left out, such as retrofitting your home for wheelchairs or your trips to the hospital.<\/p>\n<p>The lump sum you receive from your critical illness insurance aims to lift you off these additional financial burdens. You can also use it to supplement your income during unpaid leaves or even to pay for your mortgage or vacation.<\/p>\n<p>The <a href=\"https:\/\/www.lia.org.sg\/\">Life Insurance Association Singapore (LIA)<\/a> has published standard definitions for <a href=\"https:\/\/www.lia.org.sg\/media\/2160\/mu5819-part-2-of-4-_lia-ci-framework-2019_lia-definitions-for-37-cis.pdf\">37 severe-stage critical illnesses<\/a> usually covered by insurers in Singapore.<\/p>\n<p>Some of the 37 severe-stage critical illnesses include, for example:<\/p>\n<ul>\n<li>Major cancers<\/li>\n<li>Heart attack<\/li>\n<li>Stroke<\/li>\n<li>Kidney failure<\/li>\n<li>Coma<\/li>\n<li>Blindness<\/li>\n<li>Deafness<\/li>\n<li>Terminal illness<\/li>\n<\/ul>\n<p>Your policy usually ends after you receive your payout. You will not be able to make another claim if your policy has ended.<\/p>\n<p>Check out some of the <a href=\"https:\/\/www.pacificprime.com\/blog\/best-critical-illness-insurance-in-singapore.html\">best critical illness insurance in Singapore<\/a> here.<\/p>\n<h2>Who Needs Critical Illness Insurance<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4327\" src=\"https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_Who-needs-it.webp\" alt=\"Critical Illness Insurance_Singapore_Who needs it\" width=\"1140\" height=\"495\" srcset=\"https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_Who-needs-it.webp 1140w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_Who-needs-it-300x130.webp 300w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_Who-needs-it-1024x445.webp 1024w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_Who-needs-it-768x333.webp 768w, https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2025\/01\/Critical-Illness-Insurance_Singapore_Who-needs-it-1138x493.webp 1138w\" sizes=\"auto, (max-width: 1140px) 100vw, 1140px\" \/><\/p>\n<p>Critical illness insurance can give you great peace of mind in times of major illness. It could be especially helpful if you suspect you might be at risk of critical illness, are the sole breadwinner, are about to start your family, or if you simply want an extra safety net.<\/p>\n<p>As there is no restriction to how to use your payout, young parents or breadwinners might find it especially helpful for compensating their lost income or buffering against any further medical expenses.<\/p>\n<p>If you suspect you might be at risk of critical illness, either from your lifestyle, profession, or family history; critical illness insurance can give you financial peace of mind from early on.<\/p>\n<p>Last but not least, if you\u2019re simply concerned about your financial well-being in the face of a major illness, critical illness insurance can be your financial safety net.<\/p>\n<p>It can also be beneficial to take out your critical illness insurance while you\u2019re still young and healthy as age and pre-existing conditions, like high blood pressure or diabetes, can impact your insurance premiums.<\/p>\n<p>Learn more in the section below about what you should consider when purchasing your critical illness insurance.<\/p>\n<h2>What to Consider When Purchasing Critical Illness Insurance<\/h2>\n<p>Just like anything about insurance, there are factors you should consider when purchasing your policy. For critical illness insurance, you may want to look at the stage covered by your policy, single vs. multiple payout policies, and the difference between critical illness plans and riders.<\/p>\n<h3>Stage Coverage<\/h3>\n<p>Usually, you receive your critical illness insurance payout when you are diagnosed with a major illness in a severe stage. However, many insurers have begun to introduce critical illness insurance that pays out for early- or intermediate-stage diagnosis.<\/p>\n<p>This will likely impact the premiums you pay. Therefore, you should carefully consult with your insurance agent or insurance advisor before your purchase.<\/p>\n<h3>Single vs Multiple Payouts<\/h3>\n<p>Most critical illness insurance offers a single lump-sum, and your policy is terminated. However, many insurers have introduced new critical illness insurance products with multiple payouts, such as when your condition progresses or recurs.<\/p>\n<p>Consider consulting with your insurance agent or insurance broker to find out plans that work best for you, as this will likely affect your premiums.<\/p>\n<h3>Pre-Existing Conditions<\/h3>\n<p>Some critical illness insurance plans will not provide you with coverage if you have pre-existing conditions. Some may provide coverage at higher premiums or may exclude your pre-existing conditions. Nowadays, however, there are plans that have pre-existing conditions included.<\/p>\n<h3>Critical Illness Plan or Critical Illness Rider<\/h3>\n<p>Critical illness insurance can be offered as a stand-alone plan by itself or as a rider to your health or life insurance plan. A stand-alone plan usually features more options of coverage and payments for you to choose from, but they can be costlier than a rider.<\/p>\n<p>Your insurance agent or insurance broker can help you make comparisons for the option that works best for your budgets and needs.<\/p>\n<h2>Conclusion<\/h2>\n<p>Critical illness insurance differs from health insurance in that, instead of reimbursing your medical costs, it pays you a lump sum of cash upon a diagnosis of a major illness. You can use this money at your own discretion, either financing your treatment or supplementing your lost income.<\/p>\n<p>There are multiple aspects you should consider when it comes to your critical illness insurance, from the stage it will cover to the amount of payouts, whether you should purchase it as a rider or a stand-alone policy, and more.<\/p>\n<p><a href=\"https:\/\/www.pacificprime.sg\/\">Pacific Prime<\/a> can help you go through all of that. Our insurance advisors leverage connections with the region\u2019s top insurers to ensure you have comparisons of some of the best <a href=\"https:\/\/www.pacificprime.sg\/plans\/\">insurance plans<\/a> that suit your needs and budgets.<\/p>\n<p><a href=\"https:\/\/www.pacificprime.sg\/contact-us\/\">Contact us now<\/a> for free, no-obligation plan comparisons.<\/p>\n<div class='code-block code-block-6' style='margin: 8px 0; clear: both;'>\n<p><a href=\"https:\/\/www.pacificprime.sg\/compare-quotes\/step-one\/?campSource=PPSG-Blog&utm_source=blog&utm_medium=cta_banner&utm_campaign=banner&utm_content=quote\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-781\" src=\"https:\/\/www.pacificprime.sg\/blog\/wp-content\/uploads\/2019\/06\/PPSG_Gen_02.jpg\" alt=\"Get an Insurance quote banner\" width=\"1138\" height=\"493\" \/><\/a><\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Critical illness insurance pays a lump sum of money to policyholders once they are diagnosed with a major illness covered by the policy. There is no restriction to how this paid-out money can be used, making this insurance highly attractive as extra funds for treatment or supplementing income. However, just like many things about insurance, &#8230;<\/p>\n","protected":false},"author":57,"featured_media":4324,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5,2],"tags":[770,1478,768,2960,258],"class_list":["post-4323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","category-insurance","tag-ban_gen","tag-critical-illness-insurance","tag-cta_gen","tag-financial-planning","tag-insurance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Critical Illness Insurance: What is it and Who Needs It?<\/title>\n<meta name=\"description\" content=\"Critical illness insurance pays a lump sum of cash upon a diagnosis of major illness. 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She graduated with a Bachelor of Arts in International Social Sciences from University of Tsukuba, Japan. Prior to her arrival at Pacific Prime, her professional pursuit has taken her everywhere from an online publisher dedicated to raising Thai people\u2019s awareness of the aging society to an international organization working to enhance regional academic collaboration. Through such experience, she has gotten her hands on various kinds of content, from colorful photo albums on ballroom dancing to news articles summarizing insights from the senior thought leaders of Southeast Asia\u2019s higher education sector. Coming to Pacific Prime, she is ready to utilize her experience for the new pursuit. With a strong passion for storytelling and writing, she hopes her words could help bring people closer to the best international health insurance plan that works for them. After all, as a writer, there is no greater honor than when one\u2019s words can add clarity to the world of the readers. Apart from writing, she is an avid planespotter. On the weekends, you can expect to find her loitering around the airport, gawking at all the aircrafts taking off and landing. 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