Understanding How Critical Illness Insurance Works

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Critical Illness Insurance is a type of health insurance that helps to cover the costs associated with medical treatments for serious illnesses. It provides financial protection against unexpected medical expenses and can help you and your family get back on track financially if you are diagnosed with a critical illness.

Does critical illness cover stroke? Yes, with this type of insurance, you can receive benefits when you experience a covered event such as stroke, cancer, or heart attack.

That being said, let’s see the six ways Critical Illness Insurance works.

Reimbursement of your medical expenses

Critical Illness Insurance is designed to cover your medical expenses should you be diagnosed with a critical illness. This includes treatments, hospital stays, and any subsequent tests that the doctor may recommend for them to accurately diagnose the illness. It also helps to cover medication costs so that you can focus on getting better instead of worrying about bills.

However, you may need to submit bills and receipts to the insurance company to be reimbursed, so make sure to keep these as part of your medical documentation.

A lump-sum payment

Critical Illness Insurance also offers a lump-sum payment once you’ve been diagnosed with a covered condition which allows you to use the money for any medical costs or other expenses that may not have been fully covered by the insurance policy.

This lump-sum payment can help you cover the costs of treatments, lost wages from missing work due to your illness, and other expenses associated with being sick such as travel costs and out-of-pocket costs. So, when choosing between critical illness insurance Singapore policies, it’s important to look for policies that offer a generous lump-sum payment. It will also give you a degree of financial security and peace of mind.

It pays your beneficiaries in the event of death

In some cases, Critical Illness Insurance can also pay out a lump-sum amount to your beneficiaries should you pass away due to an illness covered by the policy. This provides your loved ones with financial support so that they can manage any necessary expenses without having to worry about the financial burden.

Additionally, this type of policy may also include a waiver of premium feature which means that your beneficiaries will not have to pay any premiums on the policy should you pass away due to an illness covered by the policy.


It covers pre-existing conditions

Having Critical Illness Insurance means that you will be covered even if you already had a pre-existing condition before signing up for the policy. This is important since many health insurance policies do not cover pre-existing conditions. Therefore, having Critical Illness Insurance can be especially beneficial if you already have a medical condition that could lead to critical illness later in life.

For instance, if you already suffer from diabetes or high blood pressure, you may want to consider getting this type of policy as it can help cover any medical expenses that may arise due to your pre-existing condition.

What about mental and physical disabilities?

Critical Illness Insurance also provides coverage for mental and physical disabilities. This means that you will receive a lump-sum payment should you be unable to work due to a disability caused by an illness covered by the policy.

This type of insurance can help cover any additional medical expenses and assist with daily living needs such as transportation or home modifications which may be necessary for you to be able to live independently.

On the other hand, mental disabilities are often not covered by traditional health insurance policies, and hence having Critical Illness Insurance can help to provide financial security in the event of such a disability.

Stay protected even after your policy has ended

Lastly, some critical illness insurance policies may offer a type of coverage known as ‘guaranteed renewable’.

This type of coverage allows you to keep your policy in place even after it has expired, meaning that any new critical illnesses that you may develop in the future will still be covered by the policy, so you can rest assured knowing that you have protection against unexpected medical expenses.

For instance, if you have been paying premiums for a 10-year Critical Illness Insurance policy, the policy will be automatically extended to cover any future critical illnesses, even after the initial 10-year period has ended.

As you can see, in Singapore, Critical Illness Insurance can provide you with financial security and peace of mind to face any unexpected medical expenses. It covers pre-existing conditions, mental disabilities as well as physical disabilities which are often excluded from traditional health insurance policies. Furthermore, some critical illness insurance policies offer a type of coverage known as ‘guaranteed renewable’ so that you can stay protected even after your policy has ended.

With all these benefits in mind, it is certainly worth considering getting a Critical Illness Insurance policy for yourself or your loved ones.