Getting the right insurance can feel like an overwhelming decision, especially when it comes to critical illness insurance and cancer insurance.
In this post, you’ll learn:
- What critical illness insurance is and why it’s important
- What cancer insurance covers and why people still choose it
- Whether critical illness insurance or cancer insurance is right for you
Here’s a startling fact: cancer treatment costs in Singapore can hit up to $200,000!
That’s enough to drain anyone’s savings, but the right insurance can make all the difference.
So, if you’re trying to protect your health and your wallet, keep reading to find out which policy could save you from financial stress.
What is critical illness insurance?
Critical illness insurance is a type of insurance policy that provides you with a lump sum payment if you’re diagnosed with a life-threatening condition such as cancer, heart attacks, kidney failure, or strokes – some of the most common critical illnesses covered.
These are not your everyday illnesses; they often require long-term care and extensive treatments, which can be both physically and financially draining.
Beyond the emotional and physical toll, the cost of treatment and recovery can quickly add up, from hospital bills to ongoing therapies.
In fact, in Singapore, cancer treatment costs alone can range from $20,000 to $200,000, depending on the type and stage.
That’s where critical illness insurance steps in – helping you manage these costs by providing a financial safety net.
This insurance doesn’t just help cover medical expenses; it also gives you some breathing room to handle living costs, like mortgage payments or utility bills, especially if you can’t work while undergoing treatment.
What is cancer insurance?
Cancer insurance is a specialised type of policy designed to provide you with a lump sum payout if you’re diagnosed with cancer, whether it’s in the early stages or more advanced.
From surgery and chemotherapy to radiation therapy and other specialised care, the costs can easily become overwhelming.
Cancer insurance can also help with the day-to-day costs that might otherwise pile up, like transport to treatment centres, home care, or even taking time off work.
By providing financial support across various stages of the disease, this type of insurance reduces the burden on your loved ones, allowing them to focus on your care instead of worrying about mounting bills.
Differences between cancer insurance and critical illness insurance
| Criteria | Cancer Insurance Plans | Critical illness Insurance Plans |
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If cancer is covered in critical illness plans, why do people still get cancer insurance plans?
Great question!
While it’s true that most CI plans cover advanced-stage cancers, they usually don’t pay out for early-stage or intermediate cancers.
This means that if you’re diagnosed early, which is often the goal with cancer screening, you might not be able to claim under your CI plan until the disease progresses – which is the last thing you’d want.
That’s where early critical illness (ECI) plans come in.
ECI plans cover multiple stages of cancer and more, but there’s a catch – they tend to be much more expensive than regular CI plans.
Now, here’s why people turn to cancer insurance: it offers coverage for all stages of cancer, from early detection right through to advanced stages.
Cancer insurance tends to be more affordable compared to ECI or CI plans, making it a popular choice for those who want comprehensive cancer coverage without breaking the bank.
So if cancer is your main concern and you’re looking for cost-effective coverage across all stages, cancer insurance can offer more flexibility and peace of mind.
Comparing critical illness and cancer insurance premiums
To level the playing field, the comparison would be made with early CI insurance and cancer insurance, as they both cover all stages of the illnesses.
For a 30-year-old non-smoker male, the premiums calculated before discounts are as follows:
| Multipay CI/ECI insurance | Cancer Insurance | |
| Plan | HSBC Life SuperCriticare | Tiq Cancer Insurance |
| Coverage | $100,000 | $100,000 |
| Annual Premiums | $1,165 | $146 |
As can be seen, Tiq Cancer Insurance’s premium is much more affordable than that of the early CI insurance.
Should I get critical illness insurance or is cancer insurance enough?
It really depends on your needs and what you’re looking to protect yourself against.
Critical illness insurance is broader and covers a wide range of serious conditions like heart attacks, strokes, kidney failure, and major cancers.
If you’re looking for comprehensive coverage across different life-threatening illnesses, CI insurance can offer you that peace of mind.
For example, if you’re concerned about your family history of heart disease or other critical conditions, CI insurance would make more sense.
However, keep in mind that most CI plans will only pay out for advanced-stage cancers and severe cases of other diseases.
On the other hand, cancer insurance is much more focused.
It covers you specifically for cancer across all stages, from early detection to more advanced stages.
This is a huge plus if cancer is your main concern because it offers wider coverage at a generally lower cost than Early Critical Illness (ECI) plans.
If you’re primarily worried about the high costs of cancer treatment, which can range from $20,000 to $200,000 in Singapore, cancer insurance might be enough for you.
Remember, it’s also worth considering your personal and family medical history, your budget, and whether you want broader protection or a more focused, affordable option.
Conclusion
Deciding between critical illness insurance and cancer insurance comes down to understanding your personal needs and priorities.
We’ve covered how critical illness insurance offers broader protection, covering major diseases like heart attacks, strokes, and advanced-stage cancers, while cancer insurance focuses solely on cancer at any stage and is typically more affordable.
If you’re looking for more comprehensive coverage across multiple conditions, critical illness Insurance might be the way to go.
But if cancer is your main concern, and you want a cost-effective way to get full coverage from early detection onwards, cancer insurance could be enough.
Still unsure about which one is right for you?
Don’t worry, it’s a big decision.
If you’re feeling confused or want some personalised advice, why not have a chat with one of our trusted financial advisor partners?
They can walk you through the options and help you figure out what works best for you – completely free of charge.
At the end of the day, the right choice is the one that gives you peace of mind and financial security.
