Critical
illness insurance plans are an important part of any insurance portfolio, especially
in Singapore. Singapore is a wealthy country,
with a wealthy country health issues. The average Singaporean will not die early of
malnutrition, childhood diseases, and gastrointestinal brought about by poor
sanitation. The average life expectancy in
Singapore is 83 years old for males, and 85 years old for females. This means we are likely to live long enough
to contract a critical illness.
A hospitalisation plan covers the cost of treatment for a critical illness, unless it is a new condition, and they end up naming it after you. What such a plan does not cover, is the loss of income and the degradation in the standard of living due to the onset of critical illness. In most families, it may mean the loss or decrease in more than one income streams. The one who has cancer, for example, is not the only one who cannot work. Often, another family member, likely the spouse or one of the children, has to become the caregiver and give up on a career. Even if not, the stress of the illness affects more than one person.
In light of this, it is perfectly understandable why that insurance payout is so important. It is not only a replacement for income loss, but that extra funds give us options in additional medical options not otherwise covered by the insurer, complementary therapy, or even a final trip. It is a hedge against impoverishment and medical bankruptcy.
From the 26th August 2020, there are updated definitions for the standard 37 critical illnesses all life insurers abide to under the Life Insurance Association of Singapore’s Critical Illness Framework 2019. This was announced on the 29th August 2019. This means, from that 26th August 2020, no life insurer may sell a critical illness plan or rider under the old definitions. This does not, in any way, affect any critical illness policy sold before this, and claims against these policies. These are refinements of definitions of certain critical illnesses, and not the addition or removal from this list.
Under the Critical Illness Framework 2019, the definitions of 21 critical illnesses were revised, while the names of 14 critical illnesses were enhanced to better reflect the intent of the coverage, and remove ambiguity. The following is a summary of the changes to the standard list of 37 critical illness under the framework:
No |
Critical
Illness |
Name
Change? |
Definition
Change? |
1 |
Major
Cancer |
Yes |
Yes |
2 |
Heart
Attacks of Specified Severity |
Yes |
Yes |
3 |
Stroke
with Permanent Neurological Deficit |
Yes |
Yes |
4 |
Coronary
Artery By-pass Surgery |
No |
No |
5 |
End
Stage Kidney Failure |
Yes |
No |
6 |
Irreversible
Aplastic Anaemia |
Yes |
Yes |
7 |
End
Stage Lung Disease |
No |
No |
8 |
End
Stage Liver Disease |
No |
No |
9 |
Coma |
No |
Yes |
10 |
Deafness
(Irreversible Loss of Hearing) |
Yes |
Yes |
11 |
Open
Chest Heart Valve Surgery |
Yes |
No |
12 |
Irreversible
Loss of Speech |
Yes |
Yes |
13 |
Major
Burns |
No |
No |
14 |
Major
Organ / Bone Marrow Transplantation |
No |
No |
15 |
Multiple
Sclerosis |
No |
Yes |
16 |
Muscular
Dystrophy |
No |
Yes |
17 |
Idiopathic
Parkinson’s Disease |
Yes |
Yes |
18 |
Open
Chest Surgery to Aorta |
Yes |
No |
19 |
Alzheimer's
Disease / Severe Dementia |
No |
Yes |
20 |
Fulminant
Hepatitis |
No |
No |
21 |
Motor
Neurone Disease |
No |
Yes |
22 |
Primary
Pulmonary Hypertension |
No |
No |
23 |
HIV
Due to Blood Transfusion & Occupationally Acquired HIV |
No |
Yes |
24 |
Benign
Brain Tumour |
No |
Yes |
25 |
Severe
Encephalitis |
Yes |
Yes |
26 |
Severe
Bacterial Meningitis |
Yes |
No |
27 |
Angioplasty
& Other Invasive Treatment for Coronary Artery |
No |
No |
28 |
Blindness
(Irreversible Loss of Sight) |
Yes |
Yes |
29 |
Major
Head Trauma |
No |
Yes |
30 |
Paralysis
(Irreversible Loss of Use of Limbs) |
Yes |
No |
31 |
Terminal
Illness |
No |
No |
32 |
Progressive
Scleroderma |
No |
Yes |
33 |
Persistent
Vegetative State (Apallic Syndrome) |
Yes |
No |
34 |
Systemic
Lupus Erythematosus with Lupus Nephritis |
No |
yes |
35 |
Other
Serious Coronary Artery Disease |
No |
Yes |
36 |
Poliomyelitis |
N0 |
Yes |
37 |
Loss
of Independent Existence |
Yes |
No |
Details of these amendments are available at the Life Insurance Association of Singapore’s Critical Illness Framework Comparison of the 2014 & 2019 Definitions.
The reason for these changes is to provide greater transparency, and provide common definitions of these critical illnesses so that consumers are able to compare different policy plans and assess their coverage needs. This also seeks to eliminate claim discrepancies due to varying definitions, where one insurer may pay out for a claim, whereas another would decline, for the same condition.
None of this precludes insurers from extending coverage beyond the standard 37 critical illnesses, which AIA Singapore does, for its critical illness plans. For example, AIA Power Critical Cover offers a wide coverage for 175 conditions, including 150 multi-stage critical illnesses, 10 conditions under our Pre-Early Benefit, and 15 special condition. AIA further boosts your coverage with a Power Reset Benefit, restoring 100% of your coverage 12 months after your last claim, allowing you to make claims up to five times your coverage amount. You will also enjoy twice your coverage amount should a relapse occur with our Power Relapse Benefit.
Additionally, some changes have expanded benefits for the insured. These include allowing claims under “HIV Due to Blood Transfusion & Occupationally Acquired HIV” for those who suffer from thalassaemia or haemophillia. Previously, they were denied a claim. Also, the new definitions have aligned the “Blindness (Irreversible Lost of Sight)” condition with the legal definition of blindness of 6/60, from the previous 3/60.
None of these amendments materially affect any existing coverage. These definitions are not implemented retroactively, in a manner to deny claims. They are enhancements, and may be a reason for you to relook your critical illness coverage to add to what you already have. For amendments that expand the scope of existing coverage, however, it is the discretion of the insurer as to whether they apply, or apply upon auto-renewal of the policy or riders. There is no reason to rush, or be pressured to relook your coverage.
No comments:
Post a Comment
Thank you for taking the time to share our thoughts. Once approved, your comments will be poster.