The Need For Cancer Insurance Policy
Like it or not, the reality is that cancer can happen to anyone regardless of age and lifestyle and remains the no.1 cause of death in Singapore (Source: MOH). A cancer diagnosis without adequate health insurance coverage can in fact snowball to a huge financial burden. It is therefore worthwhile to consider having a cancer specific insurance policy to ensure that one has sufficient insurance coverage against the condition and to seek the necessary treatment as early as possible. Having payouts from a policy will be particularly useful in the following aspects:
- Providing more comprehensive coverage for cancer treatment as Integrated Shield Plans typically cover your medical bills up to a certain cap only
- As a buffer against possible loss of income as the insured may not be able to work either on a temporary or permanent basis due to the condition
- Covering one’s daily expenses as well as hospice and palliative care costs (e.g: hiring day nurses), if required, to manage the condition
Millennials often think that they are young and hence cancer will not happen to them. However, the truth is, cancer does not discriminate and can affect anyone and everyone regardless of their age. Additionally, based on the findings from the Etiqa Protection Survey Report 2021, millennials are increasingly aware that they are the new “sandwich generation” with responsibilities to support 2 generations of dependants – their children and their elderly parents. Hence, if anything were to happen to them, it will affect not just themselves but also heavily impact the lives of all whose livelihood depends on them. This is definitely a chance not worth taking.
At the same time, given rising healthcare costs and on-going life expenses, consumers are increasingly recognising the need for basic cancer insurance. This is especially the case as 1 in 4 is likely to develop cancer in their lifetime (Source: Singapore Cancer Society). Payouts from a cancer insurance policy provides a financial safety net against high medical and caregiving expenses besides significant lifestyle disruption.
The comforting news is that a cancer insurance policy can actually be purchased for as little as less than a dollar a day1. To meet this demand, Etiqa is offering 2 types of policies – Essential Cancer Care and Tiq Cancer Insurance.
Tiq Cancer Insurance
Tiq’s Cancer Insurance policy is a yearly renewable, non-participating term plan that provides full payout for all stages of cancer. Here is a summary of Tiq Cancer Insurance as shown in Diagram 2.
As a yearly renewable plan, Tiq Cancer Insurance provides flexibility for the policyholder to commit for a single year first. This is ideal for those who would like to assess their financial situation before committing to a renewal. As it provides coverage for all stages of most types of cancer, this helps to close the gap on some critical illness insurance which may omit such coverage.
Furthermore, there is a no-claims discount of 6% of the total premium paid for the previous policy term. This will be applied to the renewal premium as long as no claims have been made in the previous policy term. I see this as a win-win move because it motivates one to maintain a healthy lifestyle which reduces the incidence of cancer brought by a sedentary lifestyle.
Most importantly, premiums are designed to be as affordable as possible. For instance, a 20-year-old non-smoker male who purchases a Tiq Cancer Insurance policy for a S$50,000 coverage needs to pay only S$0.27 per day2. Payments of the premium can be made monthly or annually and this is especially helpful for those on a tight budget.
For even more comprehensive coverage and a plan that also provides monthly payout upon diagnosis of severe stage cancer, one might want to consider Essential Cancer Care.
Essential Cancer Care
Essential Cancer Care is a term life plan that provides coverage against all stages of cancer (early, intermediate and severe). The key characteristics can be found in Diagram 4.
Similar to Tiq Cancer Insurance, Essential Cancer Care offers flexibility in both the sum insured as well as the policy term. For those who choose a 5-year (renewable) or 10-year (renewable) term, there is guaranteed renewability3 as long as the conditions have been met. One can also choose the sum insured that best fits his/her budget and family circumstances.
For a life insured who is diagnosed with early or intermediate stages of cancer, 50% of the sum insured will be accelerated and paid out in one lump sum. This is extremely helpful for the insured to seek immediate medical treatment as early intervention may improve chances of recovery. Despite the accelerated payout, the policy will continue with the remaining sum insured to be payable upon the diagnosis of a severe stage cancer illness (if applicable).
However, in the event that the first diagnosis reveals that the life insured is suffering from severe stage cancer, 100% of the sum insured will be paid out immediately. Besides a lump sum payout which is handy for immediate medical treatment, there is also an additional monthly payout of 1% of the sum insured for 12 months upon the diagnosis of a severe stage cancer. This is handy to cope with unexpected lifestyle changes after diagnosis of cancer.
Diagram 5 illustrates how John, who is initially diagnosed with early stage cancer and then subsequently severe stage cancer, receives multiple payouts from Essential Cancer Care.
Etiqa’s suite of cancer insurance solutions
Tiq Cancer Insurance and Essential Cancer Care provide coverage against all stages of cancer. Both policies are underwritten by Etiqa Insurance Pte. Ltd, which is a licensed life and general insurance company registered in the Republic of Singapore and the insurance arm of Maybank Group. To find out more about Tiq Cancer Insurance and Essential Cancer Care, do visit Etiqa’s website here.
1 Premium is based on S$50,000 sum insured for a 20-year-old, male non-smoker for Tiq Cancer Insurance.
2 Subject to underwriting by Etiqa Insurance Pte Ltd.
3 Please refer to the policy provisions for full details of the terms and conditions
Disclosure: This article is written in collaboration with Etiqa Insurance Pte. Ltd. It is for information only and reflects my opinion and not that of Etiqa.
Age means the age at next birthday.
These policies are underwritten by Etiqa Insurance Pte. Ltd (UEN: 201331905K). This content is for reference only and is not a contract of insurance. Full details of the policy terms and conditions can be found in the policy contract.
As these products have no savings or investment feature, there is no cash value if the policy ends or if the policy is terminated prematurely. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. The information contained on this product advertisement is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Information is correct as at 28 March 2022