I heard from my friend that he has a hospitalization plan with a CI rider. And cash portion payment is only about $600 per annum. Is the CI rider same as a stand-alone CI plan?

Hi anon,

I think your friend might be mistaken. No hospitalization plan has a 'CI rider'. Riders to hospitalization plans are generally for covering deductible, co-insurance, and related hospitalization costs such as ambulance. Only one hospitalization plan provides for a higher maximum reinbursible amount in terms of the hospital bill in event that the policy owner is warded due to a CI, and it is not a lump sum payout to the insured.

You might want to advise your friend to check again, as he might not be aware. He would be going about his daily life thinking that he will have a payout upon CI, only to discover that he was wrong all along, and by then it would be too late.

For yourself, if you are looking at hospitalization plans and CI plans, here are some things to consider:

1. Hospitalization plan. This covers any hospital bills and associated pre/post hospitalization costs as mentioned previously. This would be from an integrated shield plan, with a rider to take care of the deductible/co-insurance. Depending on your budget, you can take a private hospital plan and downgrade later, or just go for Goverment A ward.

2. Critical Illness coverage. This provides a sum of money for you to cover your expenses and other out of pocket costs should you fall critically ill and are not able to work. Usually recommended to cover at least 5 years of expenses and an additional sum to cover out of pocket. This is usually via a limited payment life plan, or a term plan, depending on your budget/needs.
   Generally, you should not have to spend more than 10% of your income on coverage.

You can work with an independent financial advisor who can provide multiple options and explain in detail what you will need to know about the types of insurance as well as the options from various insurers before you come to a decision, especially with respect to cost effectiveness as well as the minor differences between the plans.

You will want to be comfortable to share your fiinancial details with your advisor as that will be important for the advisor to consider your current situation before suggesting suitable solutions.

Hi there,

The CI rider should be similar but most will cover only the major stage CI. Most rider pays out only one time, so in the event of recurrence or relapse, there will be no further payout as the rider will terminate upon payment.

You can consider buying AIA Power Critical Cover (one of the best CI plan in the market) that covers up to 100 years old. This plan has cash value if you decide to surrender after 75 years old and it covers critical illness from early, intermediate and major. The plan has a power reset & relapse benefit that will reset the sum covered after 12/24 mth of claim up to 500%.