Critical Illness and Long-Term Care Insurance Flashcards

What is the typical payout structure of a critical illness (CI) insurance policy in Singapore?

Answer: A lump sum payment upon diagnosis of a covered condition

Critical illness insurance in Singapore pays a lump sum upon diagnosis of a covered condition, giving the policyholder flexibility to use the funds for medical bills, lost income, or any other needs.

Under the Life Insurance Association (LIA) Singapore's standard critical illness framework, how many severe-stage critical illnesses are covered?

Answer: 37

The LIA Singapore's standardised CI framework covers 37 severe-stage critical illnesses, ensuring consistent definitions across all insurers operating in Singapore.

Which of the following conditions is NOT covered under the LIA Singapore standard critical illness framework?

Answer: Severe Influenza with Respiratory Failure

Influenza, even with complications, is not classified as a critical illness; the standard framework covers severe, life-threatening conditions such as major cancer, heart attack, and stroke.

What is the purpose of 'early-stage critical illness' coverage available from many Singapore insurers?

Answer: To pay a benefit when a covered condition is detected at an early or intermediate stage

Early-stage CI coverage triggers a benefit payment when a covered condition is detected at an early or intermediate stage, before it reaches the severe stage required by a standard CI policy.

What does the 'waiting period' in a Singapore critical illness policy mean for a new policyholder?

Answer: The initial period after policy inception during which no CI benefits are payable

The waiting period (typically 90 days) is an initial period after policy inception during which CI benefits cannot be claimed, designed to prevent adverse selection.

What is the 'survival period' condition found in most Singapore critical illness policies?

Answer: The required number of days the insured must survive after CI diagnosis before a claim is paid

The survival period (typically 14–30 days) requires the insured to survive for a specified number of days after a CI diagnosis before the lump sum benefit becomes payable.

Under Singapore insurance practice, disability income insurance is primarily designed to:

Answer: Replace a portion of the insured's income when they are unable to work due to disability

Disability income insurance pays regular monthly income replacement when the insured cannot work due to a disability, based on either an 'own occupation' or 'any occupation' definition.