The Case for Multiple Claim Critical Illness Coverage

By Daniel Choo, PromiseLand Independent

Having been in the Insurance industry for slightly over 10 years, I’ve seen the positive way of how insurance can impact the lives of individuals and families. I have helped to make death claims and even though it can be awkward presenting a cheque to the surviving spouse, I know that it will still ultimately help the family. The same goes for critical illness claims. However, there is a slight difference when it comes to critical illness claims – the one being covered is still alive.

If proper financial planning has been done, the payout from the critical illness claim should help the individual ride through the ordeal financially and all is well. Furthermore, the critical illness definition is really, for a lack of a better word, critical. This means the individual would most likely not survive very much longer. Just an example to illustrate my point would be the cancer definition. If you were to read it in detail, you would notice the cancer has to be spreading to other parts of the body in order for a claim to be considered. This is critical indeed.

With the emergence of early critical illness coverage, the various definitions become a lot more relaxed, which would equate to being able to claim on such plans more easily. This is good for the individual. With the claim amount, he is able to get proper treatment and rehabilitation. The chances of recovery are high. However, this creates a problem – is he able to purchase more insurance after having claimed on such a plan? Unfortunately, he would most likely not be able to.

Cue the Multiple Claim Critical Illness plan. This is the plan that attempts to solve the problem stated above. Such plans, however, can be complex and harder to understand, especially when the various insurers are aiming to make their product stand out from the rest. However, in terms of usefulness, I would say that this is probably the most useful plan one could and should get.

So, let’s dive into the usefulness of such plans. I will not go into the specifics but give an overview of why I believe the Multiple Claim Critical Illness plan is essential.

The Pros

1. Covers various stages of critical illnesses – this means it would be easier to claim on such plans.
2. Able to claim multiple times throughout the various stages – this means you are never left uninsured against critical illnesses. However, the devil is in the details, so you will have to read the product summary of the plan for more information like how many times you can claim on the plan and the waiting periods/survival periods.
3. Able to cover you till age 100 – you can be assured that you are covered all the time, as long as premiums are paid.
4. Future premiums can be waived when a claim is made – this is an important feature because you could potentially be paying premiums for life if there is no waiver of the premium feature.

The Cons

1. You can expect premiums to be more expensive than the traditional critical illness plan – logic dictates that if an insurer takes on higher risk, they will price their plan accordingly.
2. Premiums are not guaranteed – this means that if there is a trend in the future where such plans are being claimed too often, the insurer has the right to increase premiums across the board to all policyholders.

In conclusion, I would strongly urge anyone to consider having such a plan as part of your insurance portfolio, if the budget permits. Many people spend time planning for their future – who to marry, what job to get, what house to buy, and the list goes on. However, even the best of plans can be easily derailed by ill health. Why not take some time to do some financial planning? A simple way to start would be to consider the Multiple Claim Critical Illness plan.

Not sure of what you are currently covered for? Feel free to reach out to me at 9698 2015 for a review of your insurance portfolio.

Just started working and am not sure what to get? Feel free to reach out to me at 9698 2015 for advice.

This article was prepared by Daniel Choo in his personal capacity. The opinions expressed in this article are the author’s own and do not reflect the view or position of PromiseLand Independent Pte Ltd.

If you are reading this, you are already taking or have taken steps to seek wisdom in making good choices in your finances. At PromiseLand, our ethos is “Trusted Advice, Trusted Advisor”. It means that we will walk the journey with you to make those choices that protect what you value most.