What is the difference between early critical illness and critical illness plans? What are the considerations to take into account when deciding if to purchase both or one?

I think everyone has answered it quite adequately on the definitions portion, AKA early CI covers the additional earlier conditions of the major CIs, therefore it covers a higher number of conditions in total, inclusive (usually) of additional special conditions thrown in as a bonus.

So let me shed some light on the long term effects of early and Major CI.

In case no one ever told you before, TPD benefits on whole life/term life plans all expire at age 70, while personal accident plans all auto terminate at age 75. What this means is that all total permanent disability is not covered from age 70 onwards unless it is through an accident, and all partial of total permanent disabilities are no longer covered after age 75 even if there was an accident.

Major CI benefits circumvent this by providing a TPD benefit (a little more stringent) till age 100. Additionally, early CI provides a partial disability benefit till age 100 as well.

The only way to cover disabilities is through the CI coverages after age 70/75. So if you only have major CI, you must fulfil the option of "full paralysis", "loss of both limbs", or "blindness in both eyes" in order to claim, whereas for early CI you.only need to fulfill one limb/one eye to claim.

Unless your friend is an early critical illness patient survivor or a specialist in any of the 175 covered medical conditions, otherwise it makes more sense to spend considerable time to do proper research before making a decision.

Pardon me as I don't mean to sound rude. Instead I have seen, heard, and read so many similar irresponsible comments in the past that doesn't even make sense. Now, let me explain.

Background

Generally, early critical illness and major critical illness differs in the severity of the medical condition itself. Let's take Heart Attack of Specified Severity for example. Here is part of the definition for:

*Early Stage: Insertion of a permanent cardiac pacemaker that is required as a result of serious cardiac arrhythmia which cannot be treated via other means.

*Major Stage: Death of heart muscle due to obstruction of blood flow, that is evident by at least three criteria proving t he occurrence of a new heart attack.

*Disclaimer: Refer to policy contract for full details.

According to a resource from Singapore General Hospital,

"You will need long term follow up. Initially you will be seen at 4 to 6 week intervals to check the pacemaker is functioning as intended. If there are no problems, the follow up interval may be lengthened to every 3 months or more."

Cost Involved

Integrated shield plan may cover the inpatient hospitalisation bill, as well as pre- and post- hospitalisation for a stipulated period of time. In the industry, AIA Singapore gives the highest pre- and post-hospitalisation coverage of up to 13 months for treatment via AIA Preferred Providers.

Even with such extensive coverage, it is barely sufficient to cover the lifetime worth of follow-up cost.

Will work be affected?

Honestly, it is difficult to say as everyone's body is different. For the most part, we all want to stay healthy and assumed that recovery is as simple as it seem in reading or on television.

However, reality often differs. For instance, what if you are suddenly unwell and cannot cope with the condition? Will you need to take time off work?

In case you are wondering, all these are from my years of experience after doing so many claims for my clients throughout my entire career. From the moment I did my first critical illness claim, I hope I never have to deal with it again.

Furthermore, your income will always be lesser than what it should be since part of your earnings is used to pay for your medical bill to keep you safe.

Besides, we haven't disucssed on the long term repurssions associated with such medical conditions.

Is it worth it?

Yes, cost for early stage critical illness coverage is more expensive than coverage for major critical illness alone. This is because of a number of factors, e.g.

• Number of covered conditions (LIA has a guideline to cover 37 major critical illness conditions, AIA covers 43 major critical illness conditions and a total of 175 when we include early critical illness)

• Probability of occurence / detection

• Claim experience

• Definition for payout

With this in mind, the key question will always to be able to find one that brings the right value.

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.

Hence, you may wish to research along the same path as well.

How much coverage should I have?

Before we look into how much coverage we should get, 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. I have highlighted the rest of the reasons here: https://www.blog.pzl.sg/why-every-client-needs-...

Next, here is the 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

A guide for your cashflow: https://www.blog.pzl.sg/understanding-your-pers...

All things considered, you should speak with an experienced professional who is able to give you the right advice based on real-life encounters. This will definitely help you to make an informed decision. Ultimately, it is your life and you will pay for it either via an insurance company or only from your own pocket.

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