[Critical Illness Insurance Comparison] Affordable critical illness cover with protection for the three major illnesses and multiple benefits?

So-called “thirty and established” — many people find their direction in life in their 30s and focus on advancing their careers and supporting their families. Yet, in these prime years, they often overlook their own health, and may not realise that critical illnesses can strike at any time, seriously disrupting life plans. Therefore, while still in good health, it is wise to consider purchasing critical illness insurance early as a health safeguard on the journey of hard work. Some people are in the stage of aggressive career-building and do have a certain need for critical illness protection, but given the need to allocate assets and work within a limited budget, they hope to have an affordable pure critical illness policy “for protection”, without any savings element, so that every penny is used for protection.

Term critical illness insurance (also known as pure critical illness insurance) is designed to meet the above needs. In the past, term critical illness insurance generally only allowed a one-off claim for a major illness, after which the policy would end. However, these products have been continually evolving in recent years, and some now even feature characteristics of whole-of-life critical illness insurance, such as providing multiple critical illness benefits. In this 10Life comparison of five term critical illness insurance plans with protection scores of above 9 points, all are annual renewal plans, comparing the protection and premiums of different products.

Critical illness insurance is generally divided into term critical illness and whole-life critical illness. For details on the differences between the two, you may refer to this article. Term critical illness products generally cover the three major critical illnesses (cancer, heart disease, stroke) and other specified critical illnesses. Some also feature whole-life critical illness insurance characteristics, including multiple critical illness cover.

With advances in medical technology, the survival rate of patients after contracting critical illnesses has increased, but the associated medical expenses are not affordable for everyone. Should a critical illness recur, and the insured be unable to return to work while also carrying heavy medical expenses, multiple critical illness cover can provide support.

As shown in Table 1, among the five products, Generali and Bowtie stand out for their multiple critical illness cover. Generali provides unlimited claims for the three major critical illnesses, and one claim for other covered critical illnesses. Bowtie also offers multiple critical illness cover, covering cancer recurrence and a second diagnosis of heart disease or stroke, and likewise allows one claim for other critical illnesses, for a total of up to five claims. Each claim pays 100%, with a cumulative maximum of 500%.

Term critical illness products are offering increasingly comprehensive coverage, with Bowtie covering the largest number of severe critical illnesses, and also providing optional add-ons to cover serious illnesses and injuries not yet covered by claims history.

At present, many term critical illness insurance policies can be purchased online, and the application process is relatively simple. Applicants generally only need to answer a few straightforward questions to obtain cover. Among the products above, both Bowtie and OneDegree can be applied for online, making the process relatively convenient and avoiding aggressive sales from agents.

Many years ago, there was a cervical cancer campaign that said: “There’s no reason to choose me — people only get it in their twenties!” In fact, critical illness is not age-specific, and younger people can also be affected. If you have already made a claim for an early-stage critical illness when you are young, it may affect your future cover.

Among the five products in Table 2, if you have already claimed for an early-stage critical illness, only Bowtie, Generali and Bupa still provide full cover for major critical illnesses, meaning the sum insured can exceed 100%. Some products will pay a certain percentage of the sum insured, such as 20%, after an early-stage critical illness claim; however, if you later need to make a critical illness claim, the amount payable will then be reduced to only 80% of the sum insured.

If, unfortunately, you are diagnosed with early-stage cancer or heart disease (angioplasty), the usual payout is 20% of the sum insured, with FWD offering the highest at 35%. Among these, Bowtie’s product can provide multiple claims for early-stage critical illnesses, capped at 5 claims until the original insured amount reaches 100%, while FWD has no limit until the original insured amount reaches 100%.

Term critical illness insurance generally has lower initial premiums, enabling consumers to obtain a certain level of critical illness cover for a specified term at an affordable cost. It is usually renewed annually, every 5 years, or every 10 years. The five products in Table 3 are all annual-renewal products, presented using the average annual premium over 10 years: 

Among the five products, regardless of age group, Bowtie has the lowest average annual premium over 10 years, with the widest gap being around 1.46 times compared with the most expensive product (in the 25 to 34 age group, Bowtie versus Generali’s product).

However, it should be noted that as the policy term lengthens, the premium advantage of term critical illness insurance will gradually diminish. In particular, as age increases and the risk of illness exposure rises, insurers will also adjust premiums accordingly. Moreover, plans subject to annual renewal are more likely to increase in price each year.

Finally, consumers are advised to choose a term critical illness product according to their own needs. The above information is for reference only. For detailed terms and conditions of the product, please refer to the policy. Before taking out cover, it is advisable to consider the scope of cover, premiums and benefit term. If you have any questions when applying, you may also seek advice from a licensed insurance adviser.

Note:
1.    This article was last updated on 9 October 2024.
2.    The premium information above was updated as of 9 October 2024 and does not include the insurance levy collected by the Insurance Authority.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.