- Term life insurance with critical illness (CI) coverage pays a lump sum upon diagnosis of defined illnesses during the policy term.
- The number of CI conditions covered directly affects claim eligibility.
What is term life insurance with critical illness coverage?
Term life insurance with critical illness (CI) coverage is a protection policy that provides a lump sum payout if the insured is diagnosed with a defined critical illness during the policy term. The policy also pays a death benefit if the insured passes away during the coverage period.
The number of critical illness conditions covered determines how broad the protection is. A higher number of covered conditions increases the likelihood that a diagnosis meets the policy’s claim definitions. In Singapore, insurers differentiate themselves by the scope of CI definitions, early-stage coverage, and payout structure.
Many buyers focus primarily on premium cost. However, when evaluating CI protection, the ability to claim is more important than short-term savings.
Key takeaways
