Critical illness insurance has always been a topic discussed among individuals and families, and is growing more relevant in this day and age. With rising healthcare costs in Singapore and the unpredictability of critical illnesses, you should consider critical illness insurance to safeguard your financial wellbeing. This article explores the intricacies of critical illness insurance payouts, shedding light on when and how policyholders can expect to receive their benefits.
- Understanding critical illness insurance
- Key factors that determine when you receive payouts
- Circumstances under which you will NOT be paid out
Understanding Critical Illness Insurance
Critical illness insurance serves a crucial role in providing financial support in the event where individuals are diagnosed with common medical conditions such as cancer, heart disease, or stroke. The funds can then be used to cover medical expenses, replace lost income, settle outstanding debts, or maintain one’s quality of life during treatment and recovery.
There are many different policies that offer payouts in a variety of ways. The most common type of payout in critical illness insurance policies, however, is lump sum payouts. This means that when the policyholder is diagnosed with a covered critical illness and meets the policy’s criteria, they receive a lump sum payment. Tiq 3 Plus Critical Illness insurance covers the 3 most claimed conditions – heart attack, stroke, and all stages of cancer, for a cost that does not put a hole in your wallet.
What determines if you get paid out?
Diagnosis and Documentation
To initiate a payout from your critical illness plan, you must be diagnosed with a critical illness covered by your policy. This diagnosis must be confirmed by a qualified medical professional and documented according to the requirements specified in your policy. It’s crucial to understand the specific criteria and documentation needed to ensure a smooth claims process.
Policy Coverage and Definitions
Critical illness insurance policies in Singapore may differ between insurers. It is essential to thoroughly review your policy to understand which illnesses are covered and under what circumstances a payout will be made.
Receiving the Payout
If your claim is approved, you will receive the critical illness insurance payout in a lump sum. This lump sum can be a significant financial lifeline, especially when facing the high costs associated with critical illness treatment and recovery in Singapore’s healthcare system.
There are also some important things to take note of when filing for claims. Read more about it in this article.
When do you NOT get paid out?
Waiting Period and Survival Period
One of the key factors that determine when you receive a payout from your critical illness insurance is the waiting period and the survival period, often referred to as the “waiting period” and “post-diagnosis survival period.”
The waiting period is the duration you must wait after purchasing the policy before you become eligible for a payout. Typically, it ranges from 30 days to 90 days, depending on your insurance provider and the terms of your policy. During this waiting period, if you are diagnosed with a critical illness, your policy may not pay out. It’s important to be aware of this period and its implications when purchasing your policy.
The survival period, on the other hand, is the period you must survive after being diagnosed with a covered critical illness before you can receive the payout. The survival period can also vary between policies but generally ranges from 14 days to 30 days. If you pass away during this period, the policy may not provide a payout.
Premium Payments and Policy in Force
To maintain eligibility for a payout from your critical illness plan, you must ensure that your policy remains in force by keeping up with premium payments. If you let your policy lapse due to non-payment, you may lose your coverage, and the insurer will not pay out in the event of a critical illness.
Ready to Buy Critical Illness Insurance?
Critical illness insurance plays a vital role in Singapore’s healthcare landscape by providing financial protection to individuals and families when facing severe medical conditions. The timing of when you receive a payout from your critical illness insurance hinges on factors such as the waiting period, survival period, policy coverage, and the efficiency of the claims process.
To navigate this process effectively, it’s essential to understand the terms and conditions of your policy, maintain timely premium payments, and promptly initiate the claims process upon diagnosis. With the right critical illness insurance policy for you, you can gain peace of mind knowing that your financial well-being is safeguarded in the face of life’s uncertainties. Learn more about Tiq 3 Plus Critical Illness today.
Information is accurate as at 13 October 2023. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K).
This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg).
You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you.
As this product has no savings or investment feature, there is no cash value if the policy ends or if the policy is terminated prematurely.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Tiq by Etiqa Insurance Pte. Ltd.
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