Changes to Critical Illness Insurance Benefits Guidelines

Fresh off the press:

Life Insurance Association Singapore (LIA) introduces updated Critical Illnesses benefit guidelines to meet changing needs of policyholders 


1 August 2014 – Following a one-year review, the Life Insurance Association Singapore (LIA Singapore) today announced changes to the Critical Illnesses (CI) benefit framework aimed at providing consumers in Singapore with more varied CI products. The revised guidelines encourage life insurers to innovate products and services to better meet the evolving needs of Singaporeans. 

Effective immediately, CI benefits offered under new individual or group insurance policies may be launched with two changes. They are: 

Revised standard definitions for the severe stage of 37 common CIs; and 
Flexibility for more medical conditions to be covered 

The framework is adopted by all member companies of the LIA Singapore and the General Insurance Association of Singapore (GIA). 

“The Life Insurance Association is pro-actively introducing changes to provide for current and anticipated needs of individuals in Singapore. This is especially important given the changing demographics of our community, medical advancements and expectations of today’s society. Making refinements to the critical illness benefit framework is one of numerous initiatives undertaken by the life insurance industry aimed at providing protection for the well-being of individuals over their lifetime,” said Dr. Khoo Kah Siang, President of LIA. 

Today, Singapore has a greying population with 300,000 people aged 65 or above, and that will triple by 2030
The incidence of chronic diseases among both the young and old is also increasing and will escalate the nation’s overall healthcare expenditure by an additional 11 per cent each year until 20182

Revised standard definitions for the severe stage of 37 common CIs 

Standard definitions for the severe stage of some of the 37 common CIs have been updated to reflect advances in clinical practices, medical science and technology which have impacted certain illnesses in their diagnosis and treatment. 

Critical Illness vs Terminal Illness

What is the difference between critical illness and terminal illness in Singapore (critical illness vs terminal illness)?


Critical illness also commonly known as major illness is not the same as terminal illness.


Terminal illness life insurance cover pays out only when a doctor diagnose the life assured as highly likely to die within twelve months. For some life insurance companies, the definition for terminal illness may be as strict as death within six months.


Critical illness life insurance cover is not as drastic, which is why it costs more than terminal illness insurance. As long as the life assured is diagnosed with a illness covered under the definitions of the critical illness benefit of the policy, the insurance benefit will be paid out to the policy owner.


Examples of Critical illnesses are major cancers, heart attack, stroke, coronary artery by-pass surgery and kidney failure. These five illnesses make up close to 95% of critical illness claims in Singapore.


Now that you know the difference, if you meet a financial consultant or insurance agent who offers you a plan that "covers illnesses", be sure to clarify whether the plan covers critical illness, terminal illness or both.


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