Illness often accompanies advancing age. That is inevitable. What we can do is be prepared for the medical expenses that subsequently arise in order to afford the best in healthcare. Now, your elderly parents might have a certain extent of coverage from their health insurance through both MediShield Life and an Integrated Shield Plan. However, they also need critical illness insurance.
The Singapore Cancer Society notes that around 1 in 4 people in the country may be afflicted by cancer at some point in their life. These figures are high and indicate the need for one to be financially ready to face a medical crisis, if and when it occurs. Should a senior parent, unfortunately, develop cancer, their expenses would probably exceed the coverage they receive from health insurance. By this, we mean that health insurance will not pay for their other expenses such as the need to keep domestic help or nurse if they live alone. These expenses – and many others – do arise when one is diagnosed with a critical illness.
A critical illness insurance policy offers a lump sum payout that your senior parents can use in any way they deem fit. Now, you can be sure they will get the best in medical care and not be left wanting for anything. However, choosing a critical illness insurance plan for an elderly policyholder requires a fair amount of thought and consideration. To assist you, we have listed 3 tips that will help you in picking out the best critical illness insurance policy for your aged parents.
Check the age limit
All insurance companies set an age limit for signing up for their critical illness insurance policies. Leading insurance providers usually fix this age limit for policy entry at 65 years (next birthday). This means that you should ideally get your parents signed up for critical illness insurance much before they turn 60 years. Also, do check how long the policy will cover them for.
Calculate premium affordability
Whether you are paying for the premium or your parents are, you would still want the costs to be affordable. There is no point in dropping out of an insurance plan midway simply because you cannot afford the premiums any longer. If you do that, you will lose the benefit of whatever you paid in premium costs till date. So, do calculate if you will be able to sustain paying the premiums for the next couple of years while keeping all your other expenses in mind. These expenses may include the rising costs of your child’s education, higher maintenance bills at home, retirement and so on.
Choose the maximum coverage possible
A critical illness usually requires treatment that goes on for several months or, even years. Sometimes, the patient requires care for the rest of their lives. During this extended period, one needs all the financial help they can get. Therefore, make sure to compare the coverage and pay-outs from different insurance companies in Singapore and choose the one that offers you the most within a premium that you can afford. If you are financially stable, you can opt for the maximum sum assured of S$3 million. Do ensure that multiple claims are allowed.
This is an overview of the main points to keep in mind when selecting a critical illness insurance policy for your parents. Do make sure to talk to an insurance financial consultant for advice on picking the right policy for you. We hope this article will prove helpful. Take care.