When we think of a critical illness, the first one to come to mind is the dreaded C-word. The sad truth today is that cancer is one of the biggest killers and we all know someone who is suffering through the disease.
According to the Singapore cancer society, about 39 people are diagnosed with cancer every day in Singapore, and, 1 in 4 people may develop cancer in their lifetime.
The good news is, with early detection and advancement in medical technology, survival rates are increasing. However, cancer treatment is expensive as the treatment is extended over a longer period of time.
Where health insurance pays for medical bills, critical illness plans are designed to pay out a lump sum so as to ease your burden and by providing you with money when you really need it.
Unlike health insurance, where the idea is to reimburse your medical bills and pay for hospitalisation expenses, a critical illness plan will pay the decided amount once your diagnosis reaches the terms of your contract.
This amount is yours to use, as you wish.
Thus, a critical illness plan acts as an additional financial cushion during the particularly painful ordeal of battling cancer.