MSIG and HL Assurance unveil new critical illness plans

MSIG Insurance (MSIG) and HL Assurance have both made significant steps in the critical illness coverage arena.

Firstly, MSIG Insurance (MSIG) has launched a new health insurance policy, CriticalCare Plus, aimed at addressing the growing demand for critical illness (CI) coverage in Singapore.

The policy covers five major critical illnesses, including cancer, heart attack, stroke, Parkinson’s disease, and Alzheimer’s disease.

Why did MSIG create CriticalCare Plus?

Targeted at individuals aged 18 to 60, CriticalCare Plus offers financial protection against the rising costs of chronic illness treatments. The plan includes accelerated payouts for early-stage cancer treatments and proactive heart care, in addition to a lump sum payment upon the first diagnosis of a covered critical illness.

Commenting on the new offering, Jeremy Lian, senior vice president of technical services at MSIG Singapore, said the company created a straightforward product to encourage individuals to secure coverage while they are still healthy and premiums and more affordable amid rising healthcare costs and the increasing prevalence of chronic diseases.

“Critical illness can strike at any age and leaves individuals financially vulnerable during a health crisis,” he said.

He highlighted the policy’s benefits for younger individuals, who can lock in premiums early, helping them prepare for future medical costs as healthcare expenses continue to rise.

“For young adults, accumulating critical illness coverage at affordable premiums will also better prepare them for the future and protect them from a rise in the general cost of healthcare,” Lian said.

Features of CriticalCare Plus

MSIG’s CriticalCare Plus seeks to close this gap by offering additional financial protection on top of existing employer and national health plans.

The policy includes several key features:

• Comprehensive coverage: It offers four different plan types, with a maximum payout of up to S$100,000 for major illnesses such as cancer, stroke, heart attack, Parkinson’s disease, and Alzheimer’s.
• Accelerated payouts: 50% of the sum insured is paid for early-stage cancers, while 10% is provided for treatments like angioplasty for coronary artery issues.
• Automatic renewals: The policy automatically renews after payouts for early-stage conditions or heart care, ensuring continuous coverage.
• Flexible premiums: Premiums start at around 20 cents per day for S$30,000 in coverage, with both monthly and annual payment options available.

The policy is available for purchase online with minimal paperwork, and new customers can receive a 25% discount on their premiums if they sign up by Sept. 26, 2024.

HL Assurance’s Early Protect360 Plus

HL Assurance has also launched Early Protect360 Plus, another critical illness plan aimed at addressing the same market need.

The policy offers comprehensive coverage for both early and advanced stages of major critical illnesses, such as cancer, heart attack, and stroke.

Key features of HL Assurance’s Early Protect360 Plus

Key features of Early Protect360 Plus are:

• Comprehensive coverage: early and advanced-stage protection for conditions like cancer, heart disease, and stroke;
• Unique ICU benefit: A 20% additional payout for intensive care unit (ICU) stays, up to S$25,000, which does not reduce the critical illness benefit limit;
• High payouts: coverage of up to S$300,000, with a 100% payout for critical illness diagnosis;
• Renewability: policyholders can renew their plan up to age 99, providing long-term protection, especially for seniors; and
• Flexible premiums: attractive premium rates with discounts, including a 20% launch offer and additional savings for annual or lump sum payments.

HL Assurance’s plan offers broad eligibility, available to Singapore citizens, permanent residents, and various valid pass holders aged 18 to 65, with renewability until age 99.

Critical illness coverage gaps in Singapore

Though many Singaporeans are covered by employer-sponsored or national health plans, these plans are often insufficient to cover long-term costs associated with serious illnesses. Expenses for treatments and caregiving can quickly exhaust savings.

A report recently revealed that healthcare costs in Singapore rose by 10.3% between 2023 and 2024, while another study projected that the lifetime cost for dementia care could reach S$1.6 million if the patient lives for 10 years.

According to a 2023 report by the Life Insurance Association (LIA) of Singapore, there is a significant gap in critical illness coverage.

The study found that the average adult in Singapore has around S$59,776 in CI coverage, but the estimated need is approximately S$316,603. This leaves a shortfall of more than S$260,000, which can lead to financial strain for families dealing with critical illnesses.

LIA also noted that without sufficient CI coverage, it can take up to five years to recover financially from the costs associated with critical illnesses, which include both medical bills and household expenses.

The importance of early critical illness coverage

LIA’s study also revealed that many individuals in Singapore overlook the importance of critical illness insurance, either because they find it complicated or believe it is unnecessary.

Beyond immediate treatment costs, critical illness insurance helps cover a range of expenses, including ongoing household costs, caregiving, and debt repayments. Singapore’s Healthier SG initiative, which promotes early detection and preventive health measures, is aligned with this approach.

However, the costs for treating advanced-stage diseases remain significant, highlighting the need for comprehensive coverage.