What is your biggest deterrence to getting cancer insurance? Is it the cost, the dread of a tedious application process or simply the lack of knowledge for such plans? With a 1 in 4 chance of developing cancer in your lifetime, cancer protection is an issue that should be addressed.2 In this article, we highlight some of the common myths and misconceptions that you may have about cancer insurance and reveal the truth behind these claims.
Myth 1: Having both cancer insurance and MediShield Life will result in overlapping coverage
While MediShield Life covers for hospitalisation and specified cancer treatments, the intention of the coverage between the two is different.
MediShield Life operates on a reimbursement basis which means that you will only be reimbursed for the amount spent on eligible treatments. For example, if you were to spend $3,000 on eligible cancer drug treatments, you will only be reimbursed $3,000 from MediShield Life. While this helps to take care of the costs incurred from your cancer treatment, this will not help you with the cost of your long-term care or daily living expenses.
Cancer plans on the other hand, operates on a lump sum pay-out basis. While different plans will have varying conditions for pay-outs, plans such as FWD Cancer will provide a lump sum pay-out upon the diagnosis of cancer. This means that if you are insured for $100,000, you will receive this full $100,000 as pay-out from FWD upon the diagnosis of cancer. There are also no restrictions on how this pay-out is to be used. This allows you the flexibility to use it as income replacement, for your daily living expenses while you recover, or for any long-term care costs that you may incur.
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Myth 2: I do not need cancer insurance if I am not earning an income
Cancer plans are typically recommended to be used for income replacement, with the pay-out allowing you to focus on your recovery without having to worry about your finances. However, individuals who are not earning an income (e.g. stay-home parent(s) or children) will also benefit from cancer insurance. This is because apart from serving as income replacement, pay-outs from a cancer plan can also help to cover other "unseen" expenses.
For example, if a child is diagnosed with cancer, the parent may wish to take time off to care for the child. This may affect the parent's income during the child’s recovery period. However, if the child has a cancer insurance plan, the child will be eligible for a pay-out regardless of whether he/she is earning an income. This pay-out can then serve as the parent's income replacement, helping to pay for their daily living expenses and thus allowing the parent to care for the child without having to worry about their finances.
Likewise, while a stay-home parent does not earn an income, there may be unseen "costs" incurred if he/she is ill and unable to handle the usual duties such as child care or cleaning. In this scenario, the pay-out from a cancer plan can then be used to hire a helper to care for the child or to clean the house.
(See "I have DPS, do I still need Term plans?")
Myth 3: Cancer plans are expensive
Contrary to popular belief, critical illness coverage is not necessarily expensive. From just $12 a month^ (before discounts) for $100,000 coverage, the premiums for Cancer plans tend to be lower than other early critical illness insurance. This thus makes cancer plans suitable if you are looking for an affordable plan to kick-start your critical illness coverage.
Alternatively, if you are concerned with being diagnosed with cancer and would like additional coverage, a cancer plan is also a good way to supplement any existing coverage.
Age |
Coverage amount |
Monthly premiums |
|
Male (non-smoker) |
Female (non-smoker) |
||
20 |
$100,000 |
$12 |
$20 |
30 |
$100,000 |
$12 |
$20 |
40 |
$100,000 |
$21 |
$43 |
50 |
$100,000 |
$49 |
$66 |
60 |
$100,000 |
$98 |
$81 |
Premiums shown are before discounts and are rounded down to the nearest whole number. Information is accurate as of 13 October 2021 with changes subjected to the insurer’s discretion.
Myth 4: I can wait for the right time to buy cancer insurance
There is no “right” time to buy cancer plans as cancer can occur at any age.3 Instead, get cancer plans if you are worried about getting cancer or would like a peace of mind knowing that you are financially covered in the event of a cancer diagnosis.
Getting cancer insurance coverage is simple as many plans do not require you to go through a medical check-up. Instead, all you have to do is to just answer a few health declaration questions to see if you are eligible for cover. Coverage may also be given even if you have pre-existing conditions that are not related to cancer.
Lastly, cancer plans are fuss-free to purchase and can easily be bought directly online. This means that you do not have to meet an adviser to purchase with the entire process digitised and simple to understand.
Cancer insurance available on FSMOne
Name of plan |
Allianz Cancer Protect |
FWD Cancer Insurance |
CancerCare Plus |
NTUC Cancer Protect |
TM Protect Cancer |
Entry age |
Age 18 to 65 Age Last Birthday (ALB) |
Age 18 to 65 Age Last Birthday (ALB) |
Age 20 to 64 Age Last Birthday (ALB) |
Age 30 to 64 Age Last Birthday (ALB) |
Age 29 to 64 Age Last Birthday (ALB) |
Coverage levels available |
$50,000, $75,000 or $100,000 |
$50,000, $100,000 or $200,000 |
$100,000 |
$50,000, $80,000 or $100,000 |
$50,000 to $150,000. Coverage can be increased in increments of $1,000 |
Medical underwriting |
Not required. Just answer 2 to 3 underwriting questions. |
Not required. Just answer 1 health declaration. Cover may be given even with pre-existing non-cancer related medical conditions. |
Not required. Just answer 3 health declaration questions. |
May require medical check-up if deemed necessary. |
Just answer 7 health-related questions. |
Pay-outs given in... |
Pay-outs are staggered based on whether condition is invasive or non-invasive. |
Full pay-out given upon diagnosis. |
Pay-outs staggered based on early or advanced stage cancer. |
Pay-outs staggered based on early or advanced stage cancer.
| Pay-outs staggered based on early or advanced stage cancer.
|
Annual premiums* (after discounts) |
$266.92 |
$105.56 |
$94.16 |
$207.70 |
$156 |
Ongoing promotions |
- |
- |
- |
- |
*Profile: Age 30, non-smoker male for $100,000 coverage.
Information shown is accurate as of 26 January 2022 with changes subjected to the insurer’s discretion.
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Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment, General Insurance (Personal and Commercial) from AIG, Allianz, Chubb, Etiqa Insurance, FWD Insurance, Great Eastern, Manulife, NTUC Income, QBE, Sompo and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
Interested to learn more? Check out these articles:
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Is maternity insurance a must-have for all expecting mothers?
Cheap Cancer Insurance Singapore 2021
All you need to know about the new integrated shield riders
^Profile: Age 30, non-smoker male for $100,000 cancer coverage.
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1 Source: https://www.genre.com/knowledge/publications/ri15-4-droste-xiang-en.html
2 https://www.singaporecancersociety.org.sg/learn-about-cancer/cancer-basics/common-types-of-cancer-in-singapore.html
3 Source: https://www.nrdo.gov.sg/docs/librariesprovider3/default-document-library/scr-annual-report-2018.pdf?sfvrsn=bcf56c25_0