EMPLOYEE'S BENEFIT
Critical Illness
The critical illness insurance is designed to provide for a lump sum payment when a person is diagnosed with any of the critical conditions in his policy. To provide more clarity to the policy cover, Life Insurance Association of Singapore (LIA) has significantly defined Critical illness on its members’ policies to provide a wider coverage and clarity to the consumers.
However, it is important to understand that despite that insurers follows the guidelines of LIA, many insurers further the coverage of their policies so as to distinct themselves from their peers.
APPLICATION
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Additional Information
37 Critical Conditions Covered
Heart attack with a specific severity
Stroke
Kidney failure
Major cancers
Coronary artery bypass surgery
End-stage lung disease
Aplastic anaemia
End-stage liver failure
Deafness (loss of hearing)
Coma
Heart valve surgery
Major burns
Loss of speech
Multiple sclerosis
Major organ/bone marrow transplantation
Muscular dystrophy
Surgery to aorta
Parkinson’s disease
Fulminant hepatitis
Alzheimer’s disease/severe dementia
Primary pulmonary hypertension
Motor neurone disease
Benign brain tumour
HIV due to blood transfusion and occupationally acquired HIV
Bacterial meningitis
Viral encephalitis
Blindness (loss of sight)
Angioplasty & other invasive treatment for coronary artery
Paralysis (loss of use of limbs)
Major head trauma
Progressive scleroderma
Apallic syndrome
Terminal illness
Other serious coronary artery disease
Systemic lupus erythematosus with lupus nephritis
Loss of independent existence
Poliomyelitis
02
Enhanced Coverage
In a Group Employee Benefits Insurance, Critical Illness is usually a rider to a Term Life Insurance. This means that you will need to have a Term life Insurance, before you can have a Critical Illness Cover. There are 2 types of covers: Accelerated or Additional
With Accelerated Cover, the policy will pay out the sum insured when the insured is diagnosed with any of the 37 critical conditions. With the payout, the Term Life cover will be reduced by the amount paid under the Critical Illness Cover.
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Documents Required
03
Applicable To
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Case Study
Example 1
Chris has a $500,000 Term Life Cover with $100,000 Accelerated Critical Illness Cover. Chris was diagnosed with a major cancer and has successfully claimed on the Accelerated Critical Illness Cover. With that, the Critical Illness cover under his Term Life policy will cease and he is only left with $400,000 Term Life Cover.
With Additional Cover, the payout for Critical Illness will not affect the Term Life Sum Insured. The Term Life Sum Insured will remains the same after the Critical Illness payout was made.
Example 2
Chris has a Term Life Insurance of $500,000 and a Critical Illness Cover of $100,000 on Additional basis. Chris was diagnosed of a major cancer and has successfully claimed $100,000 on his Critical Illness policy. Despite making the claim, the sum insured of his Term Life policy remains at $500,000 since the Critical Illness Payout is in addition to the Term Life policy.
It would sounds logical that the Additional Basis is better and why would anyone choose the Accelerated cover? One reason is that the premium for Accelerated is relatively lesser as compared to Additional Basis.
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