I was reading Seedly’s article on CI insurance, it seems like FWD’s Big 3 Critical Illness Plan is good enough. What am I missing? - Seedly
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Critical Illness (CI)

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FWD

Anonymous

Asked on 02 Jul 2020

I was reading Seedly’s article on CI insurance, it seems like FWD’s Big 3 Critical Illness Plan is good enough. What am I missing?

The premiums for the plan is so much cheaper than all the other plans, and I feel that it’s important to be covered for early stage cancer which a lot of the other plans are lacking. Furthermore, I think being covered for the most common CIs is good enough, as the chances of getting the other CIs are really low. Would just getting this plan alone be sufficient?

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Hi Anon,

I think that is a mis-conception that other plans tend to lack the coverage for Early Stage Critical Illness. The truth is they actually do, just that it's not part of the base plan, and they are usually added on as Riders to the policy. And usually the cost for Early Stage Critical Illness is on the higher side because there is a higher possibility for Early Stage Critical Illness occuring. Also the ratio of 1 being diagnosed for CI in Singapore is actually 1:4 or 5. So that's a 20 - 25% chance, so it is definitely important to have coverage for all CIs and not just the main ones.

Just to add, the main thing about getting a CI plan is actually for have coverage against CI for the whole of life, as CI is one of those things that can happen at any point of our lives. So that is something you might want to think about as well.

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Question Poster

03 Jul 2020

Also, while there is a ~20% of CI, it seems like most of the time it will fall under the top 3 CI. As such, if there is only a say 2% chance of being diagnosed with the other CI, would it be worth it to be covered for those? Thank you for your insights!
Tan Li Xing
Tan Li Xing

03 Jul 2020

As in regards to what I mentioned, it's actually more of a Whole Life Insurance Policy, where you have coverage for not just CI and Early CI, but Death, Total Permanent Disability throughout your life. So it's a more holistic coverage rather than just CI specific in that sense. Also, these plans usually have a limited pay option nowadays, meaning you can decide how long you would like to pay for the plan, and they will cover you for life. Based on what I have seen about the FWD Big 3, it's a term policy that covers those 3 major CI of Cancer, Heart Attack & Stroke up till 85 years old. And it's a simplified underwriting, which is a good thing, but also might not be as straight-forward as well. So you might want to check up on that too.

Above all, Seedly is not licensed to provide any form of financial advice. In addition, the information that they have presented may not always be factual. Therefore, you are advised to speak to a MAS licensed agent for the most accurate information.

Generally, you need to understand the terms for the policy, alongside with the renewal terms. For instance, is the policy on level premium? Next, it is also important to understand the conditions for payout, as not all the definitions are the same. I have explained it in my post on the upcoming critical illness definitions changes.

More Details:

Critical Illness Definition Changes Singapore: Clarity comes with a Cost!

Meanwhile, there are many plans in the market that provides coverage for early stage critical illness. In detail, one of the covered condition is for early stage cancer. Therefore, you may wish to research further, or to speak to a qualified consultant for responsible financial advice.

I share quality content on estate planning and financial planning here.

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