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Serious illnesses can lead to high medical expenses, loss of income, and financial stress. While many Singaporeans have Integrated Shield Plans (IP) for hospitalisation, these plans do not provide income replacement or cover non-hospital-related expenses.
This is where Critical Illness and Cancer Insurance come in. But how do they differ? Should you get both?
In this guide, we’ll explain the differences between Critical Illness Plans and Cancer Insurance, how payouts work, and which plan may be best for you in Singapore.
Understanding Critical Illness Insurance in Singapore
What is Critical Illness Insurance?
Critical Illness Insurance is a financial protection plan that provides a lump sum payout if you are diagnosed with a severe illness covered under the policy. Unlike Hospitalisation Insurance/Integrated Shield Plans, which reimburse medical expenses, Critical Illness Insurance gives you direct cash payments, which can be used at your discretion.
This payout can help with your medical treatments, living expenses, loss of income, or even alternative therapies that are not typically covered by Integrated Shield Plans.
Over the years, insurers in Singapore have shifted from late-stage-only critical illness plans to comprehensive plans covering early, intermediate, and late-stage illnesses. This change is significant because it ensures that you receive financial support even in the early stages of an illness rather than having to wait until your condition worsens.
Most modern Critical Illness Insurance plans in Singapore provide comprehensive coverage from early- to late-stage illnesses, including:
- Cancer
- Heart attack, heart disease, and coronary bypass
- Stroke and neurological disorders
- Kidney failure and organ transplants
- Autoimmune diseases (e.g., lupus, multiple sclerosis)
- Advanced diabetes complications
For the full list of illnesses covered by Critical Illness Plans in Singapore, click here.
How Do Critical Illness Insurance Payouts Work?
Traditionally, Critical Illness Plans pay out a lump sum upon just a single diagnosis of an illness covered by your policy. This means that once your plan has paid out the sum insured, you will not be eligible for additional payouts if you were to be diagnosed with a second or recurring critical illness in the future.
However, as we age and Singapore’s healthcare system improves, allowing us to live longer, we may be diagnosed with more than one critical illness. Therefore, some insurers have evolved their Critical Illness Plans from single-payout plans to multi-payout plans. This will allow you to claim multiple times if you are diagnosed with different illnesses or suffer a relapse.
Type of Critical Illness Plan | Payout Structure | Example Scenario |
|---|---|---|
Single-Payout Critical Illness Plan | One lump sum payout | You receive $200,000 upon first diagnosis |
Multi-Payout Critical Illness Plan | Multiple claims for relapses or different illnesses | You receive $100,000 for Stage 1 Cancer, then another $100,000 if it progresses or if you are diagnosed with a different critical illness |
A single payout policy provides a one-time lump sum upon diagnosis of any covered critical illness. Once the payout is made, the policy terminates. These plans are straightforward but may leave you without coverage if you recover and later develop another critical illness.
A multi-claim policy, on the other hand, allows for multiple payouts under certain conditions. Some plans reset the coverage amount after a waiting period, while others offer additional payouts if you experience a relapse or are diagnosed with a different illness.
Regardless of what policy you get, the payout given by a Critical Illness Plan can be used to pay for medical treatment, daily expenses, or anything else you may need to help you cope financially, such as hiring a caregiver at home or supplementing your income if you’re unable to work.
Types of Critical Illness Insurance Plans in Singapore
Insurer | Plan Name | Coverage Type | Conditions Covered | Payout Structure |
|---|---|---|---|---|
 | AIA Absolute Critical Cover | Multi-Payout CI Plan | 150+ illnesses | Multiple payouts up to 200% of sum insured |
 | GREAT Critical Cover | Multi-Payout CI Plan | Early to late-stage CI | Recurrent 100% payouts for relapses |
 | Complete Critical Protect | Multi-Payout CI Plan | 150+ illnesses | Up to 200% of sum insured for advanced stage disease |
 | Singlife Multipay Critical Illness | Multi-Payout CI Plan | 130+ illnesses | Total payout of up to 900% of your sum assured for critical illnesses |
Understanding Cancer Insurance in Singapore
What is Cancer Insurance?
Cancer Insurance is a specialised insurance plan that focuses exclusively on cancer-related expenses. Unlike Critical Illness Insurance, which covers multiple illnesses, Cancer Insurance provides financial support specifically for cancer treatments, medications, and follow-up care.
Cancer remains one of the leading causes of death in Singapore, with the Singapore Cancer Society reporting that 1 in 4 people may develop cancer in their lifetime. Given the high cost of cancer treatment, many Singaporeans choose to purchase Cancer Insurance as a more affordable alternative to Critical Illness Insurance.
Note: Cancer Insurance is not the same as a Cancer Rider.
How Does Cancer Insurance Work?
Cancer Insurance Plans typically offer either a lump sum payout or staged payouts based on the severity of the cancer.
Cancer Insurance plans usually offer:
- Lump sum payout: The full sum insured is paid out upon diagnosis, regardless of whether the cancer is in its early or advanced stages. This allows you to access funds immediately for treatments, lifestyle adjustments, or any other financial needs.
- Staged payout: Smaller payouts are paid out at different stages of the disease. For example, if a policyholder is diagnosed with Stage 1 lung cancer, they may receive 30% of the sum insured. If the cancer progresses to Stage 3 or 4, the policyholder will receive the remaining 70% payout.
Type of Cancer Plan | Payout Structure | Example Scenario |
|---|---|---|
Lump-Sum Cancer Plan | Full payout at any stage | Receive $200,000 upon cancer diagnosis |
Staged-Payout Cancer Plan | Smaller payouts at different stages | $50,000 for Stage 1, then $150,000 for Stage 3 |
Types of Cancer Insurance Plans in Singapore
Insurer | Plan Name | Coverage Type | Stages Covered | Payout Structure |
|---|---|---|---|---|
 | FWD Cancer 2.0 Insurance | Multi-payout | All stages | 100% payout for all stages of cancer |
 | MSIG CancerCare Plus | Staged payout | All stages | 50% payout for early-stage cancers, full payout for late-stage cancers |
| Singlife Cancer Cover Plus II | Staged payout | All stages | 30% payout for early-stage cancers, full payout for late-stage cancers |
Key Differences Between Critical Illness Plans and Cancer Insurance
Both Critical Illness and Cancer Insurance provide financial protection against serious illnesses, but they differ in scope, payout structure, and cost.
Critical Illness Insurance covers a wide range of diseases, including cancer, heart disease, and stroke, whereas Cancer Insurance is designed specifically for cancer-related expenses.
Critical Illness Insurance generally has higher premiums because it covers multiple illnesses. Cancer Insurance, being more focused, is often more affordable, making it an attractive option for those who only need cancer protection.
The payout structure also varies. A Critical Illness Insurance policyholder receives a lump sum upon diagnosis, while a Cancer Insurance policyholder may receive either a lump sum or staged payouts depending on the plan chosen.
Choosing between the two depends on individual health risks, budget, and coverage needs. For maximum protection, many Singaporeans opt to combine both types of coverage.
Feature | Critical Illness Insurance | Cancer Insurance |
|---|---|---|
Coverage Scope | Covers a range of critical illnesses (e.g., heart disease, stroke, organ failure, cancer) | Covers only cancer |
Payout Structure | Lump sum payout upon diagnosis of any covered critical illness | Lump sum or staged payouts for cancer diagnosis |
Usage of Payout | Can be used for medical expenses, income replacement, and daily needs | Primarily used for cancer treatments and related expenses |
Stages Covered | Some policies cover early-stage, others only advanced-stage illnesses | Covers all stages of cancer (early to advanced) |
Best For | Those looking for broad protection against multiple serious illnesses | Those who want targeted financial support for cancer treatment |
Key benefit | Provides financial support for loss of income during recovery and additional expenses beyond medical bills. | Provides specialised financial protection for cancer treatment, which can be costly and ongoing. |
Factors to Consider When Choosing Between Critical Illness and Cancer Insurance
- Personal health risks:
If you have a family history of cancer, Cancer Insurance may be more relevant. If you want protection against multiple conditions, Critical Illness Insurance provides broader coverage.
- Existing insurance coverage:
If you already have an Integrated Shield Plan, adding Critical Illness or Cancer Insurance can enhance protection. Those with employer-provided health coverage may still need additional critical illness protection for income replacement.
- Financial considerations:
Critical Illness Insurance typically has higher premiums due to broader coverage. Cancer Insurance may be more affordable for those specifically concerned about cancer.
- Payout structure:
If you prefer a one-time lump sum payout, both options provide that, but Cancer Insurance, depending on the insurer, may also offer staged payments for ongoing treatment.
- Budget & coverage needs:
Some insurers allow various options and add-ons, such as purchasing both policies to ensure comprehensive coverage.
How These Plans Complement Integrated Shield Plans (IP)
Integrated Shield Plans (IPs) cover hospitalisation and medical treatment expenses but do not provide income replacement. Critical Illness Insurance and Cancer Insurance fill this gap by providing lump sum payouts that can be used for daily expenses, medical treatments not covered under inpatient, and financial support during recovery or to supplement the loss of income from not being able to work.
Having both an IP and a Critical Illness or Cancer Insurance Plan ensures that you are covered for medical costs (through IPs), lost income (through Critical Illness Insurance), or ongoing cancer treatment (through Cancer Insurance).
This combined approach provides peace of mind and allows you and your loved ones to focus on recovery without financial stress.
Choosing the right policy depends on your health risks, existing coverage, and financial needs. When combined with an Integrated Shield Plan, these policies provide an extra layer of financial security, ensuring that you and your family are well-protected in the face of serious illnesses.
If you’re not sure about your current coverage, use our Coverage Checker to review your plan so that you can make an informed decision about whether extra insurance is needed.
