Triple protection against income loss

double income no kids
It is important to protect yourself against the income loss that incapacitation due to critical illnesses can cause. PHOTO: ISTOCK

Critical illness could strike at any time — here is how you can be ready for it

Critical illnesses are on the rise in Singapore.

These are conditions that are either terminal or curable with extensive treatment — ailments such as cancer, diabetes, heart disease and stroke. They can significantly impact daily life, involving long periods of hospitalisation in which the affected person is unable to work.

The loss of a steady income will lead to a drop in the standard of living for the affected person and their dependants, causing difficulties in meeting financial commitments like children’s education, utility bills and debts such as housing or car loans.

A better solution

That is where Prudential’s new plan, PRUtriple protect, comes in.

This plan covers you for up to 300 per cent of your basic sum assured for multiple critical illnesses, allowing you to claim multiple payouts for different critical illnesses with at least one year in between each claim. The maximum total payout can be as high as $9 million, one of the highest in the market — giving you peace of mind that your income is protected even if multiple illnesses strike.

PRUtriple protect provides coverage for 36 critical illnesses, death, and total and permanent disability. If you opt for the Early Protector rider, you will also be covered for pre-critical stages of a critical illness, and for a total of 106 medical conditions (including the 36 critical illnesses in the original plan).

PRUtriple protect offers you peace of mind that your income will be protected even if multiple critical illnesses strike. PHOTO: ISTOCK

Should you be covered?

Critical illness coverage is important for everyone as illness can strike anyone of any age (from as young as five to as old as 80) at any time.

That said, there are certain groups of people who would benefit especially from the comprehensive critical illness protection that PRUtriple protect provides.

The first are couples, both of whom are working and who have no children.

These people might think that the absence of children lessens or even removes the need for critical illness protection, as they have no dependants who are reliant on their income.

 But obtaining sufficient coverage is still necessary to safeguard these couples’ own lifestyles in the event of illness. Adequate insurance will help them to continue paying bills, servicing debt and maintaining their standard of living in the event of illness resulting in income loss.

Couples with no children should consider obtaining critical illness insurance to safeguard their own lifestyles against potential income loss. PHOTO: ISTOCK

The growth of the gig economy means that increasing numbers of Singaporeans are pursuing freelance careers. As these freelancers are self-employed, they lack insurance and paid medical leave provided by their employer.

Thus, it is crucial to ensure that they have adequate critical illness protection to ensure a continued source of income should they become incapacitated. This is all the more pertinent should they have dependants to support.

Obtaining adequate coverage is particularly important for freelancers, who do not enjoy employers' insurance plans or paid hospitalisation leave. PHOTO: ISTOCK

The final group are children. When a child is diagnosed with a critical illness, it is highly likely that at least one parent would have to stop working to look after the child. This loss of income will not be covered by the parents’ insurance plans — hence the need for children to have their own coverage.

PRUtriple protect offers you peace of mind that a critical illness will not be the end of the world, allowing you to focus fully on recovery without worrying about financial matters.

Correction note: This article has been edited for clarity.