Do you require critical illness insurance if you already have an Integrated Shield Plan?

Health is wealth. In today’s uncertain world ensuring sufficient protection against unforeseen medical emergencies has become the number one priority for many individuals in Singapore. To protect themselves and their families from the financial burden of critical illnesses, people often purchase insurance coverage. Two popular options that offer comprehensive coverage are critical illness insurance and Integrated Shield Plans. However, the question remains, do you need critical illness insurance if you already have an Integrated Shield Plan?

Before diving into the details, it is important to understand the fundamental difference between critical illness insurance and Integrated Shield Plans. Critical illness insurance is a standalone policy that provides a lump sum payout upon diagnosis of a specific critical illness covered under the policy. The illnesses listed in the policy include cancer, heart attack, stroke, etc. The payout from the policy can be used to cover medical expenses and other financial needs during the recovery period.

On the other hand, an Integrated Shield Plan (IP) is a combination of a MediShield Life plan, a basic health insurance plan provided by the country, and a private insurance plan offered by insurers. The IPs extend the coverage provided by MediShield Life, offering policyholders access to private hospitals and other additional benefits.

To address the question: should you consider getting critical illness insurance if you already have an Integrated Shield Plan? The answer lies in understanding the limitations of the coverage.

· Coverage:

Integrated Shield Plans generally focus on hospitalisation and surgical expenses, offering protection against various medical conditions. Critical illness insurance plans on the other hand provide a lump-sum payout if the policyholder is diagnosed with a critical illness. However, this plan does not provide coverage for hospitalisation, surgery or medical treatment costs. It would be wise to purchase an Integrated Shield Plan and a rider to cover these additional costs.

· Lump sum payout:

While an IP covers hospital costs, it may not offer a lump sum payout like a critical illness insurance policy. A lump sum payout can be helpful during a critical illness, as it can be used to cover non-medical expenses as well during the recovery phase.

· Supplementary benefits:

Critical illness insurance often has additional benefits such as a waiver of premium, meaning that if the policyholder is diagnosed with a critical illness, the future premiums for the policy are waived off. This ensures that the coverage remains intact despite the financial challenges posed by a critical illness.

· Pre-existing conditions:

Integrated Shield Plans may have exclusions for pre-existing diseases, this means that if you already have a critical illness before purchasing the plan, it may not be covered. In contrast to that, critical illness insurance typically covers pre-existing conditions if they were not known at the time of purchasing the plan.

· Affordability:

Integrated Shield Plans can be expensive especially if you are looking for comprehensive coverage. Critical illness insurance plans can be more affordable and tailored to suit your specific needs and budget.

While an IP is a crucial component of any health insurance portfolio, it might not be enough to address all the financial challenges posed by critical illnesses. Investing in a separate critical illness insurance policy can offer an added layer of protection that ensures that you and your loved ones are sufficiently covered during such trying times.