Only 15% of Singaporeans have adequate critical illness coverage

The Life Insurance Association recommends critical illness coverage 3.9 times the annual income.

Only 15% of Singaporeans have critical illness coverage that meets the Life Insurance Association’s recommended level of 3.9 times the annual income, according to an AXA survey.

One in two (50%) of Singaporeans aged 18-65 said they feel financially ready for the onset of a critical illness. Amongst those who said they feel this way, six in 10 (64%) cited having insurance protection as a reason for their confidence.

However, eight in 10 (79%) did not have the recommended amount of protection; and 92% did not have an accurate view of the amount of coverage needed to sustain through recovery. In addition, 82% of sole breadwinners did not have adequate critical illness coverage and 27% said they did not have any critical illness coverage at all. 

Moreover, 59% of homemakers and more than 35% of those who are self-employed said they did not have any critical illness protection.

Inaccurate knowledge could be a factor as 95% have one or more misconceptions about critical illness plans or coverage, the insurer said. Common misconceptions include critical illness plans paying out regardless of diagnosis stage (66%), the belief that hospitalisation plans will cover every need (54%), and that critical illness plans are expensive (72%).

Furthermore, amongst those who said they feel financially unprepared for critical illnesses, 31% cited a lack of financial knowledge as a reason.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

One in 900 job vacancies requires new hires to be vaccinated.
DairyFarm showed the most growth.
ARA LOGOS is currently on the 13th spot.
Meanwhile, the demand for petrochemical exports benefitted from this same crisis.
This is expected to speed up the electronic exchange of trade documents.
This is in support of achieving Absolute Zero Carbon by 2040.
Adults will only shop if goods are discounted by at least 48%, survey says.   About 54% of 1,001 Singaporean adults have plans to shop during the Black Friday sales but only if prices of goods are discounted by at least 48%, a survey from Finder.com showed.
This move is in line with its goal to accelerate recommerce growth in SEA.
The notes were released under its $3m Multicurrency Medium Term Note Programme.
Singtel showed the most growth.
Re-exports also saw an increase of 16.4% in the same month.
The marine company apologised to its workers at the dorm.
SG electricity demand peaked at 7,667MW in October 2021.
The two aim to accelerate the progression of AI.
It will focus on sustainable opportunities for companies in Singapore.