Critical illness cover: Thumbs up for innovation

CRITICAL illness (CI) plans are a staple among health insurance products and are regarded as a must-have for health risks, alongside hospitalisation plans. The good news is that even in this traditionally staid category of plans, innovation is thriving.

Traditional CI cover is simple. Because of its cost in the past, it was typically offered as a rider for a whole life plan. Once you are diagnosed with a CI, the rider pays a lump sum and cover ceases. Today, not only are standalone CI plans ubiquitous, but there are also multi-pay CI plans which can pay out up to five times the sum insured for up to five claims. And more plans may soon emerge where even “emerging illnesses” can be covered. What’s not to like?

Flexibility has become a key feature. Whereas in the recent past, a multi-pay feature is bundled in the CI design, today, most insurers now offer multi-pay riders sitting atop a base advanced-stage CI plan, alongside other riders for early-stage CI, for example.