Is the change to the critical illness definition after 26 August 2020 good or bad?

Generally, change is always for the better in the long-run.

With medical advancement and health trends in the past few years, there exists a need to reduce ambiguity in the definition when a claim is admissible.

Let me quote an example for one of the covered critical illness condition, Heart Attack of Specified Severity.

Current Definition: Based on death of heart muscle due to obstruction of blood flow

Revised Definition: Based on death of heart muscle due to ischaemia.

In this change, it becomes clear that both Type 1 Myocardial Infarction and Type 2 Myocardial Infarction will be covered.

With greater clarity, it benefits all parties.

Should I buy now?

The best time to buy critical illness insurance is when you need the coverage. In order to do this, one of the most important things to do is to have a complete understanding of your existing insurance portfolio. Through this process, it allows us to understand the coverage that we have, any financial gap, as well as to find out whether we are overpaying for our insurance policies.

Key Reasons Why:

Why Every Client needs an Insurance Policy Summary

How much insurance coverage should You have?

As a general rule,

10% to 20% of your annual income on healthcare insurance and life insurance

Basic Life Cover = 10 times your annual income

Critical Illness Coverage = 5 times your annual income

At the same time, if you are looking into early stage critical illness coverage, then you should understand the terms for payout carefully. By far, all my clients prefer to have critical illness coverage with a broader definition for payout, as compared to one with complicated terms and conditions. This is because all my clients prefer to focus on recovery, rather than to fight the technical jargons.

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Hi, its better to buy months before Aug 26 kicks in. Suggest if you are looking at Critical Illness insurance, to do some research and buy 2 to 3 months earlier than Aug 26, as Critical illness insurance after the insurance agent submit it up to office for you, most critical illness will be subjected to health underwriting which will take some weeks to approve. Hope this helps.