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2 Things to Know When Choosing a CI Plan in SG

We all know that choosing an insurance plan can be extremely daunting and time-consuming. There are many companies to choose from, and some acquaintances working in the insurance industry trying their best to get your attention can be frustrating.

What many people do not know is that in Critical Illness (CI) plans in Singapore, there is not much differentiation (Other than extremely rare conditions) between the insurers as the Life Insurance Association (LIA) of Singapore has standardised the definition of what a “Critical Illness” is for most plans. 

However, that does not mean that you should consider your CI plans so nonchalantly. Here are 2 critical factors you have to know before choosing a policy.

  • Eligibility to meet CI for claiming your sum assured

You have to meet a few conditions to be eligible for your CI coverage claim.

  • The Critical Illness must be covered in the Insurance Policy Contract.
  • Must meet the definition stated in your Insurance Policy Contract.
  • Diagnosis must meet the conditions set by the insurer, such as the diagnosis being made by a registered medical practitioner; with supporting medical evidence.
  • Must meet the waiting period of up to 90 days after the date of issue of your policy.
  • Have to meet a 7-30 days survival period depending on the policy (Only applicable for Additional Benefit Payout plans).


  • Accelerated Payout vs Additional Payout

In a Critical Illness Plan, there are two ways that the insurer would payout the sum assured: An Additional Benefit Payout or an Accelerated Benefit Payout.

An Additional Benefit Payout is a mechanism by which an additional coverage is provided along with Life Insurance Plans as a rider or as a standalone policy.  For example, suppose you get a CI rider with additional coverage of S$100,000 and S$200,000 sum assured for Death/Total Permanent Disability (TPD). In that case, you will be paid $100,000 when contracted with a CI, and your policy with a sum assured of S$200,000 will still carry on until death/TPD.

An Accelerated Benefit Payout is a mechanism by which a portion of the sum assured will be paid to the insured whenever they meet the criteria for a CI. This mechanism is part of a rider for Term, Whole Life, ILP and Endowment Plans. For example, if you get a CI rider with a 50% Acceleration Benefit and S$200,000 sum assured, when you contract a CI before death or TPD, 50% of the sum assured, or $100,000, will be claimable when you contract a CI before death or TPD.

Due to the higher coverage, Additional Benefit Riders are more expensive than Accelerated Benefit Riders when packaged with Life Insurance Plans. Some insurers provide Severity-Based and Multiple Pay CI Insurance plans, which is more prominent in Early Critical Illness (ECI) Plans.

To learn more about ECI plans, refer to our article on best critical illness plans.