Critical illness
Support for the days it pours
Group critical illness insurance pays a lump sum when an employee is diagnosed with a covered serious illness, such as cancer, a heart attack or a stroke. The money is theirs to use as they need while they focus on getting better.
What it is
Money when it’s needed most
Hospital cover pays the medical bills. A serious diagnosis brings other costs too: time off work, care at home, changes to daily life. Critical illness cover pays a lump sum on diagnosis to help with them.
It is usually added to group term life. On an accelerated basis, part or all of the term life sum is paid early. On an additional basis, it is paid on top of term life.
How it usually works
A lump sum on diagnosis
Covered illnesses
A list of serious conditions set out in the policy, commonly using the standard definitions of the Life Insurance Association. Cancer, heart attack and stroke are among them.
Accelerated or additional
Accelerated cover pays part of the term life sum early, so the later death benefit is reduced. Additional cover pays on top and costs more.
Group critical illness explainedThe sum insured
Often a fixed amount or a share of the term life sum. On the SME packages we compare, sums run from S$25,000 to S$150,000 and usually can’t exceed the term life sum.
See term life coverTwo ways to add it
Accelerated or additional
Insurers offer one or both. The choice changes what is left for the family later.
| Accelerated | Additional | |
|---|---|---|
| How it pays | Part or all of the term life sum, early on diagnosis | A separate lump sum on top of term life |
| After a claim | The term life sum is reduced by what was paid | The term life sum stays in full |
| Premium | Lower | Higher |
| Often suits | Teams wanting this protection at a controlled cost | Teams wanting both payouts in full |
Is critical illness cover right for your team?
Worth adding if
- You already provide term life and want protection that pays while the employee is alive
- You want to support staff through long treatment and recovery
- You want your benefits to cover more than the hospital bills
- You’d like a lump sum employees can use for anything, from care at home to lost income
In practice
From diagnosis to payout
01
A diagnosis
The employee is diagnosed with an illness on the policy’s list, meeting its definition and severity.
02
The claim
The company submits the claim with the medical reports the insurer asks for. Some illnesses have a survival period or a waiting period from the start of cover.
03
The payout
Once the claim is approved, the lump sum is paid. How the employee uses it is up to them.
Questions about critical illness
Critical illness, answered
Usually not. Most insurers sell group critical illness as a rider to group term life, often at the same plan type.
Each policy lists them with precise definitions. Many group plans follow the standard definitions of the Life Insurance Association, which include major cancers, heart attack and stroke. Early-stage illnesses are covered only if the plan says so.
Often, yes. Some illnesses, such as cancer, may not be covered if diagnosed within a set period after cover starts, and pre-existing conditions are commonly excluded.
Within the free cover limit, usually not. Above it, often S$100,000 of critical illness cover on SME packages, or for older employees, a health declaration may be needed.
It depends on the insurer. Some treat group critical illness like term life, which is exempt; others charge GST on it. Our quotes show the premium with GST where it applies.
Compare critical illness cover
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