On 29th August 2019, the Life Insurance Association Singapore (LIA Singapore) said all critical illness products based on definitions used from 2014, when the last update was done, may no longer be sold in Singapore from Aug 26 2020.
Henceforth all critical illness policies sold in Singapore must comply with the 2019 framework. Of the 37 defined critical illnesses, changes have been made to 14 headers and 21 definitions.
What has changed? Referenced to the list from dollarsandsense.sg as follows:
1. Major Cancers*
2. Heart Attack of Specified Severity*
3. Stroke with Permanent Neurological Deficit*
4. Coronary Artery By-pass Surgery
5. End Stage Kidney Failure
6. Irreversible Aplastic Anaemia*
7. End Stage Lung Disease
8. End Stage Liver Failure
9. Coma*
10. Deafness (Irreversible Loss of Hearing)*
11. Open Chest Heart Valve Surgery
12. Irreversible Loss of Speech*
13. Major Burns
14. Major Organ / Bone Marrow Transplantation
15. Multiple Sclerosis*
16. Muscular Dystrophy*
17. Idiopathic Parkinson’s Disease*
18. Open Chest Surgery to Aorta
19. Alzheimer’s Disease / Severe Dementia*
20. Fulminant Hepatitis
21. Motor Neurone Disease
22. Primary Pulmonary Hypertension
23. HIV Due to Blood Transfusion and Occupationally Acquired HIV*
24. Benign Brain Tumour*
25. Severe Viral Encephalitis*
26. Severe Bacterial Meningitis
27. Angioplasty & Other Invasive Treatment For Coronary Artery
28. Blindness (Irreversible Loss of Sight)*
29. Major Head Trauma*
30. Paralysis (Irreversible Loss of Use of Limbs)
31. Terminal Illness
32. Progressive Scleroderma*
33. Persistent Vegetative State (Apallic Syndrome)
34. Systemic Lupus Erythematosus with Lupus Nephritis*
35. Other Serious Coronary Artery Disease*
36. Poliomyelitis*
37. Loss of Independent Existence*
To get the detailed report on what has changed? You can read the changes implemented here: https://www.lia.org.sg/media/2161/mu5819-part-3-of-4-_lia-ci-framework-2019_comparison-of-lia-definitions_2014-and-2019.pdf
What exactly does that mean for consumers? As we are all familiar, Critical Illness coverage tends to swing on the pricey side. The changes mean tightened definition which will keep premium costs in check as there will likely be less obscurity over what can be claimed and what can’t be claimed.
With more defined definition, there is less grey area when it comes to making claims for your critical illness policy. Which leads to the next question that will likely pop into your head: Should you get covered before the new changes kick in.
Don’t you worry, your girl has you covered. 🙂
In the event you are currently sufficiently covered? There isn’t a need to go into kia-su mode and buy more just because there are gonna be changes. At the same time? Should you have gaps in your current coverage OR you are considering to get some coverage …
Take this opportunity to weigh on whether the current definitions are more lenient and swings towards your advantage or if the new changes will be more benefiting. Different folks, different strokes.
Ultimately? Consulting a financial advisor is highly encouraged. If you have been stalling on a review or have yet to look into your portfolio? Use this time and look into it BEFORE the changes kick in!
