If you’ve been planning to buy critical illness coverage but haven’t done so, it’s crucial that you read this article extensively before deciding when to buy it, as you may be affected by the changes to the definitions of critical illnesses that will come into effect on 26 August 2020. In a nutshell, the changes mainly involve the tightening of specific critical illnesses, and this would result in more exclusions.
Today we will be sharing 5 ways these revisions may impact you and what you should take note of.
1. To be covered, you must fall under one of the 37 critical illnesses
To be categorised as a critical illness (CI), you have to fall under one of the 37 CIs in the list below. The headings have been revised, and the revisions are reflected in red.
2. To be covered, your CI definition has to match accurately
To successfully claim pay outs, your definition has to be satisfied. As you can tell from the list above, the changes in headings would directly result in more stringent definitions as well. While we may have the sudden urge to start running for the hills, it is slightly reassuring to know that over 90% of all CI claims are only from these 5 CIs – Major Cancer, Heart Attack of Specified Severity, Stroke with Permanent Neurological Deficit, Coronary Artery Bypass Surgery, and End-Stage Kidney Failure.
For more details on the changes, please refer to the LIA Critical Illness (CI) Framework 2019.
3. If you’re an existing policyholder, you won’t be affected
So yes – rejoice because you don’t have to do anything! For those of you with existing insurance plans with the “older” CI coverage, you won’t be affected even after 26 August 2020. As per the previous policy contract, the CI definitions will stay the same, so there is more room for interpretation when a claim is made.
4. If you aren’t an existing policyholder but will be buying coverage before 26 August 2020, you won’t be affected
Future policyholders buying the CI coverage before 26 August 2020 will still be covered under the 2014 Framework, so go ahead and get covered for some peace of mind! The older CI definitions seem to be less stringent, and that may be an important consideration when deciding whether to buy before or after 26 August 2020.
5. As definitions become narrower, it will be harder to claim pay outs
In the event that you or your family members suffer from benign brain tumour, coma, stroke, heart attack, or major cancers in the future, it will be more difficult to claim pay outs due to the exclusions. For deafness, blindness, and aplastic anaemia, the term “irreversible” has also been added, so you can see how the pool of people who can be covered will become smaller.
While there’s nothing much we can do about these changes, we can strive to keep ourselves healthy so we won’t be stricken with illnesses and disease as we grow older. Most importantly, go and get yourself an insurance plan so you will be covered in an unforeseen emergency!
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