Have you ever wondered what would happen if you fell ill? I’m not talking about the common cold here, but a serious, potentially life-altering illness that would require you to stop working and concentrate all your resources on fighting the disease and getting better.
Turns out, almost half of Singaporeans would not be prepared in such a scenario. In a recent study[1], 43% of the Singaporean respondents who had never had cancer believed they were not financially prepared to manage the disease if they got diagnosed with it.
In addition, 32% were concerned about the cost of cancer care, and indicated that these concerns might influence their decisions about whether to delay or receive treatment.
Going about your daily life knowing that falling ill would be financially ruinous is a heavy burden to carry. And it gets worse if you have family members who depend on you.
What are the 37 Critical Illnesses?
The insurance industry defines 37 critical illnesses that are typically covered by most insurance policies.
While the names of some illnesses may have changed since the introduction of the Critical Illness Framework in 2024, the core conditions remain largely consistent across insurers.
In Singapore, the three most common critical illnesses are cancer, heart attack, and stroke, underscoring the importance of protection for young adults.
Here’s a list of the 37 critical illnesses in alphabetical order:
- Alzheimer’s Disease / Severe Dementia
- Angioplasty & Other Invasive Treatment for Coronary Artery
- Benign Brain Tumour
- Blindness (Irreversible Loss of Sight)
- Coma
- Coronary Artery Bypass Surgery
- Deafness (Irreversible Loss of Hearing)
- End Stage Kidney Failure
- End Stage Liver Disease
- End Stage Lung Disease
- Fulminant Hepatitis
- Heart Attack of Specified Severity
- HIV Due to Blood Transfusion and Occupationally Acquired HIV
- Idiopathic Parkinson’s Disease
- Irreversible Aplastic Anaemia
- Irreversible Loss of Speech
- Loss of Independent Existence
- Major Burns
- Major Cancer
- Major Head Trauma
- Major Organ/Bone Marrow Transplantation
- Motor Neurone Disease
- Multiple Sclerosis
- Muscular Dystrophy
- Open-Heart Heart Valve Surgery
- Other Serious Coronary Artery Disease
- Paralysis (Irreversible Loss of Use of Limbs)
- Persistent Vegetative State (Apallic Syndrome)
- Poliomyelitis
- Primary Pulmonary Hypertension
- Progressive Scleroderma
- Severe Bacterial Meningitis
- Severe Encephalitis
- Stroke with Permanent Neurological Deficit
- Surgery to Aorta
- Systemic Lupus Erythematosus with Lupus Nephritis
- Terminal Illness
Cost of Critical Illness Treatment in Singapore
Instead of speculating about the potential cost of a serious illness, let’s look at some figures to better understand the magnitude of the financial burden we could be looking at.
The National University Cancer Institute Singapore publishes total bill estimates and benchmarks[2] for various types of cancer.
In the case of lung cancer involving abnormal growth with very severe complications, the median cost of a hospital stay for treatment is $8,506 to $15,164. But it would be a gross underestimation to assume that that would be the full cost of the disease.
The cost of cancer treatment can vary wildly depending on the condition, the length of treatment, the type and complexity of the procedure and the hospital chosen for treatment.
For instance, the cost of chemotherapy or radiotherapy can range anywhere from a few thousand dollars to a five figure sum. In addition, more than one course of chemotherapy or radiotherapy might be needed to eradicate the tumour. Cancer patients can spend years battling the disease. The total cost of late stage cancer, according to some estimates, could be in the range of $100,000 to $200,000 a year.
In addition, according to a 2021 news report[3], cancer drugs cost more in Singapore than in many other countries like South Korea and Australia, with traditional cancer drugs typically costing several hundred dollars a month, and some newer treatments costing over $5,000.
While government subsidies, the MediSave scheme and MediShield Life can go some way towards alleviating the cost of cancer, there is no guarantee that they will be enough.
According to a 2023 news report[4], public sector oncologists have reportedly alerted the Ministry of Health (MOH) that the MediShield Life cap of $1,200 on cancer services is inadequate, and that almost half of subsidised cancer patients could find themselves being asked to make cash top-ups for their treatment.
For example, a patient diagnosed with third-stage ovarian cancer who was interviewed for the abovementioned report found herself being asked to make cash top-ups for her treatment, having reached her MediSave withdrawal limits and MediShield Life claim limits.
Having stopped full-time employment to manage the disease, she was only working part-time. In spite of her financial difficulties and potentially fatal illness, she was only allowed to make MediSave withdrawals of up to $600 a year.
This anecdote is a chilling example of how, without adequate insurance protection, a critical illness diagnosis could turn into not just a massive financial burden but also an obstacle to seeking treatment for recovery.
In order to protect yourself, it is crucial to ensure that you have adequate insurance protection. Hospitalisation insurance can cover most of your medical bills, but you might need some extra financial help on the long road to recovery. This is where.
How much is enough for critical illness coverage?
The right amount of critical illness coverage ensures you’re financially prepared to battle the illness throughout its duration. Your policy should ideally cover a comprehensive range of critical illnesses and offer flexible payout options to meet your specific needs.
Key coverage points to look out for in critical illness insurance include:
- Lump sum payout: A substantial lump sum payment upon diagnosis allows you to focus on recovery without financial stress.
- Coverage for early stages: Ensure your policy covers critical illnesses even in their early stages, as treatment costs can be significant even then.
- Comprehensive illness coverage: Look for a plan that covers a wide range of critical illnesses, including the most common ones in Singapore (cancer, heart attack, stroke).
- Flexibility in payout options: Consider policies that offer flexibility in how you receive the payout, such as monthly installments or a combination of lump sum and instalments.
- Policy duration: Choose a policy that covers you for an adequate period, ideally until your retirement or beyond.
- Premium affordability: Ensure the premiums fit within your budget without compromising on coverage.
What is critical illness insurance and why is it important?
Critical illness insurance pays out a sum of money if you are diagnosed with one of the illnesses covered by the policy. It is designed to offer extra financial help just when you need it most—upon diagnosis of a serious condition that is typically very expensive to treat.
Most critical illness insurance policies cover the top causes of death in Singapore[5], including cancer, heart disease and stroke.
The payout can be used however you like and does not have to be used to pay your medical bills.
For instance, your critical illness insurance payout can be used to pay any medical costs that are not covered by your hospitalisation insurance or must be paid in cash as part of the co-payment portion. The remaining money can then be put towards supporting you and your family if you have had to take time off work to concentrate on your recovery.
Here are some key reasons critical illness insurance is important to have:
Critical illness insurance helps you pay out-of-pocket medical costs
MediSave and MediShield Life have their limits and could be insufficient in the face of a serious illness. They are also highly inadequate for treatment in unsubsidised wards or private hospitals.
If you have a hospitalisation insurance plan such as an Integrated Shield Plan (IP), although it could potentially cover the bulk of your hospital bills, do not forget that there is a co-payment portion that must be paid by you. Your critical illness insurance payout can cover this sum.
Critical illness insurance offers financial support if you need to take time off work
When you are diagnosed with a serious illness, your priority for the next few months or years will be to concentrate on getting better.
It is easy to see why having to work full-time could be too taxing and hinder your recovery. In addition, you might not be able to properly discharge your duties to your employer or your clients when you are fighting for your life.
With a critical illness insurance payout, you will be able to choose to stop work for some time to focus on recovery, or at least downsize your professional responsibilities, perhaps by working part-time.
This is all the more important if you have family members who rely on you financially, such as children, elderly parents or a spouse. They are going to need some extra support as they accompany you to treatments and support you through your recovery. You can use your critical illness payout to keep your household financially afloat during this tough time.
I already have medical insurance, do I still need critical illness insurance?
There is a common misconception that having medical or hospitalisation insurance is enough to take care of all your healthcare needs.
However, it is important to note that hospitalisation insurance such as an IP will only cover your medical bills, but usually will not offer coverage that can be channelled towards paying for your living expenses or supporting your family.
In addition, as mentioned earlier, IPs always have a co-payment portion. That means that, while the insurer will foot most of your medical bills, a portion must still be paid by you.
The co-payment portion will depend on your plan and any riders you have purchased but is typically about 10%. A co-payment of 10% can add up to a sizeable amount if you incur a big hospital bill. For instance, if you incur a bill of $100,000, that works out to a co-payment of $10,000, a considerable sum.
Even if you have purchased riders to reduce the co-payment portion as much as possible, since 2018, insurers have been required to incorporate co-payment of at least 5% for new riders[6], although these can also be legally capped at $3,000 or more per year.
Critical illness insurance can give you the cash you need to foot the bill for your IP’s co-payment, fully freeing you from the burden of medical bills, and giving you some cash left over to support you and your household.
I am still young, do I need critical illness insurance?
Youth comes with a sense of vigour and invincibility, especially when it comes to our health.
But it is precisely when you are in your prime that your financial responsibilities start to pile up. The first half of your life is when you might make the decision to get married and have children. You might be juggling multiple financial burdens such as the purchase of your first home. It is also the time when your parents are beginning to age and might start to depend on you financially.
In fact, many young Singaporeans in their twenties to forties now consider themselves part of the Sandwich Generation[7], juggling the financial burden of supporting both a young family and elderly parents.
With so many competing financial responsibilities, it is important to ensure that you and your family have financial support in the event that something happens to you and your earning capacity.
HL Assurance’s new early critical illness policy pays out even at an early stage of disease
With a good critical illness policy, you can be assured of financial protection for you and your family if you fall ill.
But one potential problem area is that some critical illness policies may not offer payouts if you are diagnosed at an early stage of a disease.
The solution? HL Assurance’s Early Protect360 Plus not only protects you from serious illnesses, but it also does so at an early stage. If you get diagnosed at an early stage, you receive a 100% cash payout so you can fight the disease as soon as possible for the best chances of recovery,
The policy covers the top seven critical illnesses in Singapore, including major cancer, heart attack and stroke.
In addition, if you are warded in the Intensive Care Unit (ICU), you will get an additional 20% ICU payout that does not reduce your benefits, to be received on top of your sum assured.
With HL Assurance’s Early Protect360 Plus, give yourself and your family the financial protection you need, no matter what critical illness may strike.
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Written by Joanne Poh – 3 April 2025
About the author:
Joanne Poh is a freelance writer specialising in insurance, property and personal finance. She has written content for some of Singapore’s most prominent insurers, banks and fintech startups, as well as channels such as MoneySmart, PropertyGuru and The Straits Times. Her work has been featured on portals such as Yahoo!, MSN, AsiaOne and herworldPLUS. As a writer, her mission is to give readers digestible information that can help them make better decisions.
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Malaysia
Hong Kong