Critical illness coverage on a budget for age 40 and above

Profile: Mr Tan, a 40 year old non-smoker male

Turning 40 this year, Mr Tan realised that he is now at a higher risk of critical illness due to his age. As he does not wish to burden his children with any potential medical and lifestyle expenses, Mr Tan is looking for affordable critical illness coverage to plan for the unfortunate event that he is diagnosed with a critical illness.

In this article, we look at several options and recommend the option that we feel will best cater to Mr Tan’s need for critical illness coverage.

Critical illness coverage options

Mr Tan has five options for critical illness coverage. The options are:

1. Direct purchase critical illness insurance
2. Addition of an early critical illness (ECI) rider to a 5 year renewable term plan
3. Standalone single pay-out critical illness plan
4. Standalone multi-pay critical illness plan
5. Cancer only plan

Getting critical illness coverage on a monthly budget of $50

_{^Premiums shown are before discounts and are calculated based on the profile of an age 40, non-smoker male. Accurate as of 13 November 2020.}

With a budget of $50 a month, Mr Tan has three options: FWD Big 3 Critical Illness, TM Term Assure 2 and FWD Cancer.

A Comparison

_{*Premiums shown are before discounts and are calculated based on the profile of an age 40, non-smoker male. Accurate as of 13 November 2020.}

Understanding FWD's Big 3 Critical Illness

While typical critical illness insurance tends to be more expensive, FWD Big 3 Critical Illness breaks stereotypes by offering critical illnesses coverage at an affordable price.

Designed to cater to the three most commonly claimed critical illnesses, FWD Big 3 Critical Illness offers early stage protection against cancer, heart attack and stroke.1 Premiums for FWD Big 3 Critical Illness is also kept affordable even for the older age groups thus allowing more the opportunity to receive affordable coverage against critical illnesses.

Get Big 3 Quote >

Understanding Tokio Marine's TM Term Assure 2 with ECI rider (5 year renewable)

The addition of an early critical illness (ECI) rider will allow your term plan to also cover for critical illnesses. However, while the premiums of a 5 year renewable term plan is lower than that of a regular term plan, do note that premiums are not guaranteed and may increase at every renewal.

Understanding FWD's Cancer Plan

As coverage may be given to those with existing non cancer-related conditions, FWD Cancer insurance may be suitable for individuals who find it hard to get insured with their pre-existing health conditions.

While premiums are affordable, do bear in mind that FWD Cancer covers only for one critical illness: Cancer.

Get Cancer Quote >

Our recommendation for Mr Tan: FWD Big 3 Critical Illness

We feel that for Mr Tan's age and concerns, he should be considering a critical illness coverage of at least $200,000. With his monthly budget of $50, we feel that the most suitable plan for Mr Tan would be FWD Big 3 Critical Illness.

While it is important to remember that no two plans are similar for early critical illness coverage, we like how FWD Big 3 Critical Illness is able to keep premiums affordable even for those in an older age group. Additionally, FWD Big 3 Critical Illness also keeps things simple by providing a full pay-out upon the diagnosis of cancer, heart attack and stroke.

_{*Premiums shown are before discounts and are calculated based on the profile of an age 40, non-smoker male. Accurate as of 13 November 2020.}

While TM Term Assure 2 with an ECI rider may cover for up to 125 medical conditions and procedures, Mr Tan’s annual budget of $600 would only allow him to obtain a coverage of $100,000. As we think priority should be given to the coverage levels for Mr Tan, we recommend FWD Big 3 Critical Illness with $200,000 sum assured for him.

Lastly, while FWD Cancer will also fall within Mr Tan’s budget, we feel that FWD Big 3 Critical Illness, which also covers for heart attack and stroke on top of cancer, is a better choice for the additional coverage that it offers. With heart attack, stroke and cancer taking up more than 90 per cent of critical illness claims in Singapore, we feel that FWD Big 3 Critical Illness will be a good balance between coverage and affordability.

For others who may find themselves in a situation similar to Mr Tan,

Annual premiums for $200,000 coverage for a non-smoker male:

_{*Premiums shown are before discounts. Accurate as of 13 November 2020.}

Click on the button below if you would like to know more about getting affordable critical illness coverage.

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On understanding critical illness coverage:

The Basics Of Critical Illness Insurance

Choosing the right critical illness coverage. Part 1

Choosing the right critical illness coverage. Part 2

Cheap Critical Illness Cover For Those In Their 30s

Comparing Critical Illness Coverage 2020

Information is accurate as of 13 November 2020 with changes subjected to the insurer's discretion.

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^{1Source: https://www.genre.com/knowledge/publications/ri15-4-droste-xiang-en.html}