You Are Not Too Young To Buy Critical Illness Insurance

How Much Critical Illness Insurance Do I Need?

Youth is a period of life associated with health, energy, and vitality. Hardly anyone ever thinks of sickness and disease striking them in their 20s or 30s. 

Unfortunately, ill health can come knocking when we least expect it to. 

Studies show that rare forms of cancer – such as Von Hippel Lindau – constitute a sizeable 25% of all cancers in Singapore. Worst yet, these rare cancers are more common among young adults in the country. Here’s another statistic – 1 out of every 10 patients suffering a stroke in Singapore is under 50 years of age. 

These days, high-stress careers and hectic lifestyles combined with wrong eating habits put almost anyone at the risk of developing severe diseases quite early in life. Sometimes, even if you maintain a healthy lifestyle, your genes could put you at risk of certain illnesses. And, a single illness requiring hospitalisation can wipe clean your entire savings. Now, you do enjoy a certain basic level of medical insurance through MediShield Life. You probably also have this coverage topped up with a private Integrated Shield Plan. But, a severe illness such as cancer or a stroke will often have expenses that go way beyond the hospital ward. 

How do you manage these costs?

Critical illness insurance can help…

Let’s start at the top by understanding what critical illness insurance is.

Critical illness insurance is a type of insurance product that gives the policyholder a lump sum payout if they are diagnosed with any of the critical illnesses that the policy covers. You can use this payout as you deem fit – to buy the groceries, pay the rent, afford your child’s tuition, or even keep domestic help while you receive life-saving medical care.

Remember that a critical illness – such as a stroke or advanced stage cancer – might requires you to take time off work while you recover. However, your bills and responsibilities do not take a similar time out. How will you keep your home running as a young Singaporean with dependent parents, spouse and children? Moreover, you might also still have your student loans. If you fall ill unexpectedly and need to devote your finances to treatment, your loved ones might not manage to make payments on these. 

With critical illness insurance, you no longer need to worry about how you will meet such financial responsibilities during an illness. Having this kind of coverage to back you up allows you to take time off work and receive the best of treatment, with peace of mind. 

Benefits of buying critical illness insurance young

Buying critical illness insurance when you are in your 20s makes sense even if you are in no major danger of a severe disease yet. Purchasing this coverage when you are young has many benefits such as:

  • Generally cheaper premiums due to your age
  • Better coverage with fewer exclusions (such as pre-existing illnesses which usually come along later in life)
  • Access to a wider range of policy options with almost nil chances of getting rejected

Remember that you can either buy a standalone critical illness insurance plan or add critical illness as a rider to your life insurance plan. You may also opt in for critical illness insurance that has multiple payouts – this can come in handy for many severe diseases tend to be recurring in nature. As you are young and the premiums are affordable, try to go for the highest coverage that you can afford. 

For help in selecting the right critical illness insurance plan and suitable riders, speak to an insurance consultant today. Good luck!

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