This article was first published on Dollars & Sense on 25 September 2018.
The limitations with traditional critical illness plans
Traditional critical illness plans tend to be simplistic in nature. You buy a plan and you receive coverage for as long as the plan is in effect. If you are diagnosed with a critical illness covered under the plan, you receive a payout and the plan terminates once the payout has been made.
Most traditional critical illness plans only covers a person when an illness is diagnosed at the severe stages of an illness. But what does “severe stage” actually mean?
Take for example, under the critical illness framework as defined by the Life Insurance Association (LIA), kidney failure is defined as the irreversible failure of both kidneys, which require either permanent renal dialysis or kidney transplantation. What this also means is that the failure of one kidney does not constitute as a severe stage critical illness, and hence you would not receive a payout in such a situation. You can find out more about the various definition here.
The problem of payouts only being made when an illness reaches severe or late stage is that recovery is usually a lot harder by then. This doesn’t mean that the payout isn’t useful, as funds will still be required for a person to cope with his/her living costs and additional medical bills incurred.
However, if a payout is made when an illness is diagnosed at an early or intermediate stage, it can be a lot more helpful in giving a person the financial support to take time off work, and to afford any additional treatments or medicines required to aid in recovery.
Similar to using a 3-in-1 coffee packet, we can only claim on our traditional critical illness plan once. A person who claims on their plan for an illness will no longer be able to claim again from it in the future. Also, the person, because of the pre-existing illness, may not be able to buy a new critical illness plan either.
This means the person will no longer have any coverage in the future. If he recovers from the illness but suffers a relapse, or if a different illness occurs, the person will not be able to receive any further payouts.
How multiple-payout critical illness plans can help you?
One solution to some of the limitations of traditional critical illness plan is for you to consider a multiple-payout critical illness plan instead.
One such plan is Aviva’s MyMultiPay Critical Illness Plan. This plan not only covers you across different stages of critical illness, but also provide you with multiple payouts to support you through these difficult times.
# 1 Up to 5 lump sum payouts across all stages
Though it’s just one plan, the Aviva’s MyMultiPay Critical Illness Plan provides up to 5 lump sum payouts to individuals across early, intermediate or severe stage of critical illness, including up to 2 payouts if the individual is re-diagnosed with cancer or suffer from a recurring heart attack or stroke.
This is particularly helpful since the lump sum payout is provided during the times when a person is likely to need it most.
# 2 High amount of benefit payout
When you buy a traditional critical illness plan, you will be asked to choose the sum assured that you want. If you choose a sum assured of $100,000, you will receive this payout if you are diagnosed with an illness.
For Aviva’s MyMultiPay Critical Illness Plan, the multiple payouts provided means that individuals can get up to 600% of their chosen sum assured. For example, if your sum assured is $100,000, you may receive a total of up to $600,000 across different lump sum payouts!
# 3 Recurring illnesses
You can receive up to 2 payouts if you are re-diagnosed with cancer or suffering from recurring heart attack or stroke. These are some of the most common illnesses which also entails check-ups, surgery, treatment and therapy. They are also illnesses that you can recover from but unfortunately, they are also more likely to recur in the future.
With Aviva’s MyMultiPay Critical Illness Plan, you can have peace of mind, knowing that you will be well-covered financially should any of these common illnesses recur.
Enjoy peace of mind with a multiple-payout critical illness plan
Taking care of our health is important. However, the hard truth is that anyone, even the healthiest and fittest among us, can be diagnosed with a major illness at any point in our lives.
Even as you read this article, or other articles on DollarsAndSense about critical illness plans, we think it’s also important for us to point out that being diagnosed with a critical illness, while unfortunate, is not a death sentence. In fact, due to medical advancements in recent years, cancer survival rate for men in Singapore has gone from just 13.2% from between 1973 to 1977, to 48.5% between 2008 to 2012.
While we may not be able to entirely prevent a critical illness from occurring or recurring, we can still prepare ourselves and our family in the event that they happen. By doing so, we can increase our chances of surviving and recovering from these illnesses by ensuring that we have access to adequate financial support in order to maintain our, and our family’s, standard of living as well as seek necessary treatments.
To find out more about Aviva’s MyMultiPay Critical Illness Plan, leave down your details in the form below.
This article is written in collaboration with Aviva. All views expressed in this article is the independent opinion of DollarsAndSense.sg