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Do You Need To Get Both A Medical/Hospitalization And A Critical Illness Plan?

It’s good to notice the increased level of knowledge for insurance products (in this case – Hospitalization Plan and Critical Illness Plan) from Singaporeans. They are asking very good questions nowadays!

The Concern And The Questions

Singaporeans are starting to know the real importance of having both a Hospitalization Plan and A Critical Illness Plan as these two plans form the basis of financial planning.

But with the recent exposure in the media that one may find it hard to make a claim for cancer (during the initial stages or does not fit the definition of Major Cancers as listed in most Critical Illness Plan in the market) – Singaporeans are wondering if they should ever consider having a Critical Illness Plan in the first place!

That’s the question that they are asking themselves or me when I explain the importance of getting a Hospitalization Plan and a Critical Illness Plan together.

What You Can Learn From Actual Statistics (Ministry Of Health)

1. Top 10 Conditions of Hospitalization

Based on the statistics as shown on the site, Cancer, Stroke and Heart Disease form part of the top 10 conditions for being hospitalized in Singapore. And this has been the case since 2005.

2. Principal Causes of Death

Also based on the statistics as shown, the above mentioned conditions are part of the principal causes of death for Singaporean.

What Do This Statistics Mean In Terms Of Insurance Planning?

In simple terms, if ever there’s really a chance that you are hospitalized because of Cancer or any other form of serious illnesses, you will definitely need lots of medical attention and treatment, and just to name a few, e.g. Surgical Operations, Medication, Inpatient and Outpatient Consultations, Chemotherapy and Radiotherapy.

And most of these treatments and its related costs can be well taken care of by a good Hospitalization Plan.

Being down with a positive diagnosis of Critical Illness does not mean end of the road for you. With early detection, state-of-the-art treatments & therapy and a strong will to survive, the chances of surviving through this ordeal are definitely high!

But along the path of recovery, part of the financial burden that you’ll face with a Critical Illness would be:

  • Expensive treatments and therapy you may need from external source (e.g. Engaging a Specialist from abroad to fly in to take care of you!)
  • Lengthy medical care
  • Increased cost of rehabilitation
  • Other non-medical costs like:
    • Re-modeling your home to take care of your disability needs (e.g. Stroke)
    • Loss of income as you will be totally be absent from work during the cost of treatment
    • Difficulty in meeting loan repayments (credit cards and home loan) and monthly expenses
    • Hiring a maid or nurse to take care of your daily needs

Therefore the harsh reality is that unless you have enough savings to tide you through this, else you will definitely need a Critical Illness Plan that can give you a lump sum upon claim and also when you needed it the most.

You can also take a Critical Illness Plan as an Income Replacement Plan as the road to recovery does not take mere months but rather a few years and the common practice of any company is only to allow you to have 6 months of medical leave. Which, by then, as you can guess it, you will need to find a new job!

Putting The Two Insurance Plans Together

If there’s a diagnosis of an illness today and you need some form of long term medical treatment or operation in a hospital, you can depend on a Hospitalization Plan.

Should your condition get worse beyond a standard hospital care, you can depend on a Critical Illness to provide you with the necessary funds for advance medical care and also ensure that in terms of income, debts repayment or private care, you know you have the monetary ability.

Therefore do not think you only need a Hospital Plan or a Critical Illness Plan. You need both type of insurance plans!

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