We have a critical problem in Singapore: critical illness (CI) coverage, or a lack of it, even in 2024. Many Singaporeans are vulnerable to financial strain from critical illnesses as they are underinsured. Why?

The Life Insurance Association (LIA) of Singapore, which promotes financial literacy and sets industry standards, published a Protection Gap Study in 2023 and found these to be the reasons:


The complexity and wide variety of CI policies make it confusing for consumers.
Many people deprioritise CI insurance, thinking they won't be affected.
High premium costs.
Standalone CI policies typically do not offer cash value upon surrender or maturity.
It is difficult to assess what adequate coverage is due to the wide range of critical illnesses.


What people don't realise about CI coverage

LIA found that the CI protection gap was 74 per cent as of 2022. This number represents the average shortfall between the money needed for a critical illness event and an individual's insurance coverage.

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